India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 108 Table: Top 10 contributing sectors in terms of foreign exchange earnings Sectors Foreign Exchange Earnings ( ` bn) FY19 Foreign Exchange Earnings ( ` bn) FY18 (%y-o-y change) Contribution to Aggregate of Top 500 Companies (%) Software and BPM 3,204.5 2,639.7 21.4 31.2 Oil - Refining & Marketing 2,772.7 2,178.1 27.3 27.0 Pharmaceuticals 783.0 650.7 20.3 7.6 Gems & Jewellery 419.1 301.4 39.0 4.1 Non Ferrous Metals 256.1 198.7 28.9 2.5 Mining - Metals & Minerals 238.0 257.8 (7.7) 2.3 Iron & Steel 233.4 291.2 (19.9) 2.3 Textiles 213.4 172.2 23.9 2.1 Construction - Infrastructure Development 185.9 283.9 (34.5) 1.8 Automobiles 167.5 131.2 27.7 1.6 Source: Dun & Bradstreet Research In FY19, the total foreign exchange earnings of India’s Top 500 Companies stood at ` 10,263.4 bn, which was 21.1% more than the previous year. During FY19, the top 10 export-oriented sectors among India’s Top 500 Companies collectively accounted for nearly 83% of the aggregate value of foreign earnings of the Top 500 companies. Collectively, their forex earnings grew by 18.8% vis-à-vis the previous year. Among the top contributing sectors, the Software & BPM, Oil – Refining & Marketing, Pharmaceuticals and Gems & Jewellery sectors recorded double-digit growth in forex earnings over the previous year. On the flipside, Mining – metals & minerals sector reported a drop of 52.7% in forex earnings on account of lower commodity prices and subdued global demand. Exports of high-grade iron ore as well as pellets remained lower amidst sluggish demand, primarily from China. Prolonged trade tensions and protectionist policies in overseas markets have also dented exports, including those of the non-ferrous metals sector, which posted a 24.8% decline in forex earnings in FY19. In the Spotlight: Analyzing the Performance of New Entrants New Entrants Grow Twice as Fast as Entire Universe of Top 500 Companies The 2020 edition of the India’s Top 500 Companies publication features 21 companies that have been included in the universe of Top 500 Companies for the first time ever. These companies are spread across various sectors, with themajority belonging to Auto Components (4 companies), FIs/NBFCs/Financial Services (4), Electrical Products (2), Pharmaceuticals (2) and Retail (2). Of these 21 new entrants, two belong to the public sector. Category Growth in TI - FY19 (%) Growth in PAT - FY19 % New Entrants (21 companies) 32.1 36.1 Overall 500 Companies 15.3 16.0 The 21 new entrants collectively account for less than 1% of the aggregate total income of Top 500 Companies during FY19. However, in terms of growth, these new entrants have outperformed the rest of the Top 500 companies, reporting growth twice as fast as the universe of Top 500 Companies. 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. Similarly, the aggregate net profit of the new entrants during FY19 grew by 36.1% as compared to a much slower growth 16% recorded by all Top 500 Companies at an aggregate level. Dun & Bradstreet