India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 82 Comparative Statistics of Public and Private Companies: 1997 edition vs 2019 edition Indicators 1997 Edition 2019 Edition CAGR Public Private Public Private Public Private Number of companies 63 437 62 438 - - Avg Market Cap ( ` bn) 1,923.0 2,660.5 21,849.0 101,133.3 12.3 18.9 Share in India’s Top 500 (MCap) 42% 58% 18% 82% - - Total Income ( ` bn) 2,073.4 2,002.9 23,933.3 35,476.6 12.4 14.7 Share in India’s Top 500 (TI) 50.9% 49.1% 40.3% 59.7% - - Net Profit ( ` bn) 152.6 155.4 881.0 3,550.5 8.7 16.1 Share in India’s Top 500 (NP) 49.5% 50.5% 19.9% 80.1% - - Source: Dun & Bradstreet Research, RBI Interestingly, in spite of accounting for just 12.4% of the Top 500 Companies under review in the current edition, public sector companies still contributed to 40.3% of the aggregate total income of Top 500 Companies. However, the share of these companies in the aggregate average market capitalisation halved from 42% in the inaugural 1997 edition to merely 18% in the 2019 edition. Likewise, the share of public sector companies in the aggregate net profit fell from 49.5% in the inaugural edition to 19.9% in the 2019 edition. On the other hand, the contribution of private sector companies in the context of India’s Top 500 Companies has increased significantly since the inaugural edition. The aggregate value of market capitalisation of private companies surged by 18.9% per annum from ` 2,660.5 bn in the 1997 edition to ` 101,133.3 bn in the 2019 edition. The aggregate total income of these companies grew by 14.7% per annum from ` 2,002.9 bn in the 1997 edition to ` 35,476.6 bn in the current edition. Likewise, the aggregate net profit of these companies grew from ` 155.4 bn in the inaugural edition to ` 3,550.5 bn in the current edition, posting a healthy CAGR of 16.1%. The surging performance of the private sector on India’s Top 500 Companies can be ascertained from the fact that the share of private companies has expanded from: i) In terms of aggregate average market capitalisation, from 58% in the 1997 edition to 82% in the 2019 edition ii) In terms of aggregate total income, from 49.1% in the 1997 edition to 59.7% in the 2019 edition iii) In terms of aggregate net profit, from 50.5% in the 1997 edition to 80.1% in the 2019 edition Mid Cap Companies Dominate the Top 500 Companies Universe Market Cap-wise Comparison Categories No. of companies 2010 2011 2012 2014 2015 2016 2017 2018 2019 Small-cap 283 194 211 201 192 177 146 143 122 Mid-cap 139 185 174 183 188 191 208 209 216 Large-cap 78 121 115 116 120 132 146 148 162 Source: Dun & Bradstreet Research For the purpose of analysis, Dun & Bradstreet has categorized companies into large, mid and small cap on the basis of the 80-15-5 method used by BSE. Accordingly, the current edition of the India’s Top 500 Companies publication features 162 large-cap, 216mid-cap and 122 small-cap companies. Small-cap companies have historically had the largest representation in the list of India’s Top 500 Companies. However, since the past few editions, the number of small-caps has almost halved from as high as 283 in the 2010 edition to 122 in the 2019 edition. Contrary, the number of large-caps has almost doubled from 78 in the 2010 edition to 162 in the current edition, while the number of mid-caps rose from 139 to 216 over the same period. Dun & Bradstreet