A STUDY ON THE PROFITABILITY TRENDS OF MAHARATNA CPSEs: A CASE STUDY OF IOCL AND BPCL

Abstract

The financial performance of oil companies is a crucial determinant of their long-term sustainability and growth. This research paper examines the financial performance of Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) over 15 years (2008-2022) using key financial metrics, including Operating Profit Margin, Net Profit Ratio, Return on Assets (ROA), Return on Equity (ROE), Return on Capital Employed (ROCE), Earnings per Share (EPS), and Dividend per Share (DPS). The study employs descriptive statistics, including mean and standard deviation, to analyze the volatility and trends in financial performance. The findings indicate that while BPCL exhibited higher profitability and dividend payouts, it also displayed greater financial volatility compared to IOCL. The study concludes with implications for investors and policymakers in the Indian oil sector.