Study of relationship of financial factors with earnings of the steel companies in India under globalization

Indian steel companies should understand the relationship between the financial factors and profit. The paper examines the relationship between the different financial factors like fixed assets, working capital, net worth, financial charges and debt-equity proportion, etc and earnings before interest and tax in the post liberalization era. The study is conducted for 20 years starting from 1992 to 2011. The companies under the study have been selected on the basis of market share and SAIL is holding the highest market share followed by Tata Steel Limited, JSW Steel Limited, Essar Steel Limited and Rastriya Ispat Nigam Limited. The main objective of the study to highlight the linear relationship between earnings before interest and tax and financial indicators and to explore such relationship regression analysis technique is adopted.