India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 107 Nine out of Top 10 Sectors Post Double-Digit Growth in Total Income in FY19 India’s Top 500 Companies reported a healthy 15.3% growth in aggregate total income during FY19. The aggregate net profit also reflected a healthy growth, at 16%. For further analysis, Dun & Bradstreet classified the universe of Top 500 Companies into sectors on the basis of their dominant business operations during FY19. The top 10 sectors on the basis of total income accounted for 67.6% of the aggregate total income of the Top 500 companies. The largest sector, namely Oil – Refining &Marketing reported a robust 21.3% growth in total income during the year, spurred by higher refinery throughput and higher consumption of petrol and petroleum products during the year. At the bottom-line level, however, the aggregate PAT declined by nearly 10% due to higher inventory losses vis-à-vis the preceding year lower refinery margins. Banking, the second largest sector, had a good performance during the year at both topline as well as bottom-line levels. While its aggregate total income grew by 11.3%, the aggregate PAT rose three-fold. This was largely due to a decline in stressed assets for the first time in seven years. Particularly in the case of PSU banks, their recapitalization and reduction in provisioning helped lift the sector. The Software & BPM sector registered a rise of 15.9% in income during FY19, led by robust growth in IT & ITeS exports. The Construction – Infrastructure Development sector saw its total income improve by 21% as the government’s push through higher budgetary allocation coupled with increased private sector participation and growing foreign direct investments provided the required tailwinds. Barring the Power sector, all sectors within the top 10-sectors posted a double-digit growth in total income in FY19. The total income of the Power sector grew by a modest 5% during the year. Top 10 contributing sectors in terms of total income Sectors No. of Companies Total Income FY19 ( ` Bn) PAT FY19 ( ` Bn) Growth in Aggregate TI FY19 (%) Growth in Aggregate PAT FY19 (%) Contribution to overall TI in FY19 (%) Oil - Refining & Marketing 6 17,672.8 653.4 21.3 (9.8) 26.6 Banks 23 9,178.3 306.9 11.3 280.2 13.8 Software and BPM 19 3,566.6 724.0 15.9 7.6 5.4 Iron & Steel 15 2,610.9 226.5 15.3 118.9 3.9 Automobiles 7 2,562.3 169.5 10.3 27.8 3.9 FIs / NBFCs / Financial Services 23 2,115.7 443.8 15.4 20.7 3.2 Insurance 6 2,078.7 76.0 13.8 (25.3) 3.1 Power 11 1,980.9 311.7 5.0 34.5 3.0 Construction - Infrastructure Development 20 1,602.2 112.5 21.0 21.6 2.4 Pharmaceuticals 32 1,450.2 180.8 15.7 14.1 2.2 Source: Dun & Bradstreet Research Forex Earnings of Top 500 Companies increase by 21.1% in FY19 Over the past few decades, the contribution of foreign exchange earnings to India’s GDP has improved significantly. Way back in 1972-73, the share of India’s export of goods and services stood at just around 4%. Since then, its share has increased to nearly 20% in 2018-19. This growth can be largely attributed to the liberalization programme, Foreign Trade Agreements and favourable foreign trade policies. Dun & Bradstreet