India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 5 The publication ‘India’s Top 500 Companies 2020’, now in its 20th edition, is a tribute to the frontrunners among Indian corporates and their critical role in socio-economic growth. The publication lists and profiles leading 500 Indian companies among listed large corporates and ranks them on the basis of their key financial indicators recorded in FY19. It also provides analysis on the universe of Top 500 Companies, spread across 58 sectors, which can be treated as a barometer of the growth trends within the Indian corporate sector. After clocking an average growth of 7.7% during 2014-18, India’s real or inflation-adjusted GDP growth slowed down to 6.1% in FY19. Although the year had begun on a positive note, gross capital formation slowed down from the second quarter onwards, and subsequently manufacturing and exports suffered. While private consumption remained resilient, aggregate demand eventually weakened more than was initially anticipated. Macroeconomic stability was one of the few silver linings, with inflation remaining below 4% for the second year in succession. The current account deficit settled below 1% of the GDP by the last quarter and fiscal deficit for the year was contained at 3.4% of GDP. The year also saw a plateauing in the stressed assets of banks and a rekindling of credit flows. Following are some of the key highlights from the publication:- • In FY19, the aggregate total income of India’s Top 500 Companies grew by a healthy 15.3%; the aggregate net profit also grew at a healthy rate, by 16% • During the year, nine out of the ten largest sectors reported a double-digit growth in total income • The 2020 edition features 21 companies that have been included in the universe of India’s Top 500 Companies for the first time ever; the aggregate value of total income of these companies grew by an impressive 32.1% in FY19 as against an overall growth of 15.3% of all Top 500 Companies taken together. Likewise, the aggregate net profit of these companies grew by a much faster 36.1% as compared to the 16% growth recorded overall by Top 500 Companies. Since the current edition of the publication is the milestone 20th edition, Dun & Bradstreet also attempted to analyze the evolution of the universe of Top 500 Companies over the past 20 editions. This brought to the fore the following interesting findings:- • The total income of the top-ranked company in the current edition of the publication far exceeds the aggregate total income of all 500 companies featured in the 1997 edition • Although only around 60 public sector companies have featured in the universe of Top 500 Companies since the inaugural edition in 1997, their share in the aggregate values of total income and net profit has been quite significant; in the 2020 edition, they contributed to about 41.3% of the aggregate total income and 26.3% of the aggregate net profit • 129 companies have featured in all 20 editions of the publication thus far; these companies contribute to more than 50% of the aggregate values of total income, net profit and averagemarket capitalization of the universe of India’s Top 500 Companies This year has been a challenging one for businesses, given the outbreak of the COVID-19 pandemic. However, India’s Top 500 Companies have the scale and magnitude to influence a quick revival of the economy in the aftermath of the ongoing pandemic. Dun & Bradstreet India is committed to continue tracking India’s corporate growth story through its editions of ‘India’s Top 500 Companies’. Executive Summary Naina R Acharya Leader Learning & Economic Insights Group Dun & Bradstreet India Dun & Bradstreet