Financial and Operating Performance of Petroleum and Metals & Minerals Sectors in India – Evidences Before and After Disinvestment

This article examines the financial and operating performance of companies belonging to Petroleum and Metals & Minerals sector, before and after disinvestment. The operating performance of the companies is measured using three items - operating performance based on sales, operating performance based on investment and asset usage. The financial performance is measured using two items, corporate liquidity and corporate solvency. The study covers all the ten companies in Petroleum sector and four in the Minerals and metals sector which have undergone disinvestment from 1992-93 to 2007-08. Data for five years before and after the disinvestment is collected. The analysis is done using Paired T test. Analysis shows that there is significant improvement in the liquidity of both sectors after disinvestment.