India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 81 The India’s Top 500 Companies publication has evolved significantly over the course of 19 editions since 1997. The scope of the publication has undergone a holistic transformation over the years, moving from profiling companies on the basis of a single parameter to comprehensive analysis and comparison of leading corporates and sectors on the basis of financial parameters, insights and views. Transformations at decadal editions Particulars 1997 edition 2009 edition 2019 edition Total income of Top 500 companies ( ` bn) 4,076.3 27,621.1 59,409.9 Total Income-wise largest company (bn) 554.0 3,090.9 5,098.4 Total Income-wise smallest company (mn) 0.7 6,159.6 13,512.3 Aggregate Net Profit of Top 500 companies ( ` bn) 308.0 2,263.4 4,431.5 BSE Market Cap ( ` bn) 4,553.6 30,860.8 141,085.2 Aggregate Average market Capitalization of Top 500 companies ( ` bn) 4,583.5 34,190.1 122,982.3 GDP (by expenditure/demand - spliced series) at current prices (base year 2011-2012) ( ` bn) 13,948.2 55,141.5 170,950.0 Top 500 companies Aggregate Average Market Capitalization-to-GDP ratio 32.9 61.9 71.9 Source: Dun & Bradstreet Research In the 1997 edition of the publication, the aggregate total income of Top 500 Companies stood at ` 4,076.3 bn. By the 2019 edition, this increased to ` 59.4 tn, which translates into a CAGR of 13.6%. Likewise, the aggregate net profit of Top 500 Companies grew from ` 308 bn in the inaugural edition to ` 4.4 tn in the 2019 edition at a CAGR of 13.5%. Over the same period, the GDP (by expenditure/demand – spliced series; current prices: base year 2011-12) grew by 12.7% per annum. This shows that the Top 500 Companies have been growing at a faster rate than the economy. The list of India’s Top 500 Companies collectively constitute a major chunk of the Indian stock markets. Top 500 firms accounted for nearly 80% of the aggregate market capitalisation of all BSE-listed companies as on March 31, 2018. The aggregate value of the average market capitalisation of Top 500 Companies increased from ` 4,583.5 bn in the inaugural edition to ` 122,982.3 bn in the 2019 edition, reflecting a growth of 17%per annum. To offer a perspective on themagnitude of increase, it is interesting to know that the market capitalisation of the top-ranked company in the current edition ( ` 5,592.2 bn) exceeds the aggregate value of the average market capitalisation of Top 500 Companies in the 1997 edition ( ` 4,583.5 bn). Increasing Significance of Private Sector Companies in Top 500 Companies The first edition of India’s Top 500 Companies’ publication in 1997 featured 63 public sector undertakings and associate companies (companies directly in control of central and state government, and their associate companies). This number has almost remained constant over the years, with 62 public-sector companies featuring in ‘India’s Top 500 Companies 2019’. The aggregate total income of public sector companies grew from ` 2,073.4 bn in the 1997 edition to ` 23,933.3 bn in the 2019 edition, a CAGR of 12.4%. Likewise, the aggregate net profit of public sector companies grew at a rate of 8.7% per annum from ` 152.6 bn in the 1997 edition to ` 881 bn in the 2019 edition. Top 500: The Decadal Journey Dun & Bradstreet