Profitability and Productivity Analysis: An Empirical Study of Select Metal Industry Firms of India

The metal industry in India is on the fall and it is imperative to revive the industry. Profitability of a firm is mainly impacted by two parameters of which one is productivity and the other is market dynamics. Different researchers have attempted to study the productivity and its related aspects on metal industry in India. However, these studies do not throw light on the profitability and productivity performance of the firms. The present study tries to explore the relationship between the productivity and profitability indices by analysing different metal industries of India from the period 1999-2000 to 2009-2010. The results showed that productivity and market dynamics both inclusively determine the profitability of a firm. Only targeting higher productivity levels without getting the market ready will lead a firm nowhere.