The paper presents results of the third part of the study on Productivity in PSEs. Productivity has often been talked about and examined in the context of Physical Performance of an Enterprise. Invariably, however, it has seldom figured in evaluation of financial performance of PSE. The aim of present investigation was to determine effectiveness of productivity as an indicator of financial performance. A multiple discriminant analysis (MDA) approach is used for the investigation, using several financial performance ratios and productivity ratio as variables. Most recent annual reports of PSEs available at the time of study, are used for the investigation.