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It can be inferred from the study that operating efficiency of selected oil refineries in India was satisfactory and the management generally succeeded in investing capital funds. The performance of Reliance Industries Ltd and Chennai Petroleum Corporation Ltd was good during the study period. Mangalore Refinery Petrochemicals Ltd and Essar Oil Ltd have not performed well during the period of study. Further, owner's funds were utilized profitably by all the selected oil refineries in India except Mangalore Refinery and Petrochemicals Ltd and Essar Oil Ltd. It is significant to note that the position regarding earnings per share and dividend payout ratio in all the selected oil refineries during the period under review shows better performance and prospects from the point of view of shareholders. The results showed that Hindustan Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, Mangalore Refinery and Petrochemicals, Essar Oil Ltd and Reliance Industries Ltd experienced a strong tendency in profitability to decline over the study period. The falling tendency of profit rate of these companies is the proof of adverse effect of various controls on process, output, expansion, investment and distribution imposed by government on these companies over time. Only in the case of Mangalore Refinery and Petrochemicals Ltd, Chennai Petroleum Corporation Ltd and Reliance Industries Ltd, the time trend co-efficient is positive implying the tendency of profit rate to rise over time. The study concluded that the analysis of profitability of the selected oil refineries reveals that majority of the companies under review highlighted better performance and prospects from the point of view of owners.

Keywords

Profitability, Indian Oil Refinery, Profitability Trend, Return on Capital Employed, Solvency, Debt-equity Ratio and Earnings per Share

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