India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 96 Comparative Snapshot: 1997 edition vs 2020 edition Particulars 1997 edition 2020 edition Total income of Top 500 Companies ( ` Bn) 4,076.3 66,351.8 Total income-wise largest company ( ` Bn) 554.0 6,090.5 Total income-wise smallest company ( ` million) 0.7 10,268.8 Aggregate Net Profit of Top 500 companies ( ` bn) 308.0 5,259.5 BSE Market Cap ( ` bn) 4,639.1 1,51,087.1 Aggregate Average market Capitalization of Top 500 companies ( ` bn) 4,583.5 1,28,335.1 GDP (by expenditure/demand - spliced series) at current prices (base year 2011-2012) ( ` bn) 13,948.2 1,89,712.4 Top 500 companies Aggregate Average Market Capitalization-to-GDP ratio 32.9 67.6 Source: Dun & Bradstreet Research In the 1997 edition of the publication, the aggregate total income of the universe of Top 500 Companies stood at ` 4,076.3 bn. By the 2020 edition, this increased to ` 66,351.8 bn, which translates into a CAGR of 13.5%. What is interesting to know is that the total income of the top-ranked company in the 2020 edition ( ` .6,090.5 bn) comfortably overshadows the aggregate total income of all companies taken together in the first edition. The aggregate net profit of Top 500 Companies grew from ` 308 bn in the 1997 edition to ` 5,259.5 bn in the current edition at a CAGR of 13.8%. Over the same period, the GDP (by expenditure/demand – spliced series; current prices: base year 2011-2012) grew by 12.6% per annum. This demonstrates how the Top 500 Companies have been growing at a faster pace than the economy and have been catalysts for India’s economic growth. The list of India’s Top 500 Companies collectively constitute a major chunk of the Indian stock markets. Top 500 Companies accounted for around 85% of the aggregate market capitalisation of all BSE-listed companies as on March 31, 2019. The aggregate value of the average market capitalisation of Top 500 companies increased from ` 4,583.5 bn in the 1997 edition to ` 128.3 tn in the 2020 edition, reflecting a CAGR of 16.4%. It is interesting to know that three companies from the 2020 edition individually recorded an average market capitalisation which was higher than the aggregate value of the average market capitalisation of the entire universe of Top 500 companies in the 1997 edition. Private Sector Companies dominate the Universe of India’s 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 shown only a slight decline over the years, with 60 public sector companies featuring in ‘India’s Top 500 Companies 2020’ publication. The aggregate total income of public sector companies grew from ` 2,073.4 bn in the 1997 edition to ` 27,385.8 bn in the 2020 edition, which translates into a CAGR of 12.4%. The aggregate net profit of public sector companies grew at a rate of 10.5% per annum from ` 152.6 bn in the 1997 edition to ` 1,385.8 bn in the 2020 edition. The aggregate value of the average market capitalisation of public sector companies rose ten-fold to ` 19,476.4 bn in the 2020 edition from ` 1,923 bn in the 1997 edition. Dun & Bradstreet