India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 24 Net worth (in ₹ trillion): Increase in net profits led to strong improvement „ Amongst Top 20 sectors top three sectors such as Banks, Oil - refining & marketing, and Financial Service collectively accounted for half (~52%) of net worth in FY2021. „ The top 3 sectors in terms of growth in net worth include FMCG (156%), Food & Beverages (84%) and Banks (39%). „ Only three sectors reported a decline in net worth, which included Non-Ferrous Metals (-2%), Engineering projects/ capital goods (-25%) and Automobile – 2W/3W (-26%). Average aggregate market capitalisation (in ₹ trillion): Growth driven by FPI inflows „ The growth in market capitalisation of Top 500 companies can be attributed to the bull run in Indian equity markets fromH2 FY 2021 due to recuperating global and domestic economic conditions post the first wave of COVID-19. „ The average market capitalisation of Top 500 companies grew by 10.7% in FY 2021 as compared to 8.6% growth in average market capitalisation of all BSE stock listed companies for FY 2021. „ The robust FPI inflows in the domestic equitymarkets led both Sensex and Nifty 50 to surge respectively by 75% and 79% in FY 2021. In FY 2021, FPIs reported net inflows of ~USD 38 bn, the highest since FY 2015. Net profit (in ₹ trillion): Sharp improvement driven by lower raw material costs and taxes „ The aggregate net profits posted a strong growth of ~41% in FY 2021, driven by lower COGS (cost efficiencies), interest rates, and the impact of reduced corporate tax rates. „ Among the Top 20 sectors; Banks (19% share), Oil – refining & marketing (15% share) and Software & BPM (14% share) are the top 3 sectors in terms of net profits. „ Banks reported an impressive 479% growth in net profits due to higher net interest income and an improvement in asset quality. Gross Non-Performing Assets (GNPAs) of Banks have declined to 7.3% in FY2021 as against 8.2% in FY2020. „ Amongst Top 20 sectors, 14 sectors have shown growth in net profits while 6 sectors reported a decline in net profits for FY 2021. Total income (in ₹ trillion): Resilience amidst sharp decline in GDP „ Although, GDP declined by 6.6%, the total income of the Top 500 companies has shown de-growth of only 0.3%. Also, Top 500 companies have shown strong resilience in total income as compared to a 1% de- growth in total income of all BSE listed companies. „ Amongst sectors, top three sectors viz. Oil – refining &marketing, Banks, and Software & BPMcollectively accounted for approx. ~46% of total income of the Top 500 companies in FY 2021. However, Oil – refining and marketing rank among the lowest quartile in terms of total income growth for FY 2021 (decline of 11.6% in FY 2021) due to low crude oil prices and a ~9% decline in demand. „ In terms of total income growth, Insurance (75%), FMCG (15.1%) andMining –metals &minerals (13.6%) are among the major top three sectors FY ‘20 FY ‘21 68 67.8 -0.3% FY ‘20 FY ‘21 4.6 6.5 40.9% FY ‘20 FY ‘21 47.6 54.7 15.0% FY ‘20 FY ‘21 131.3 145.4 10.7% Source: D&B Research, Company annual reports Source: D&B Research, Company annual reports Source: D&B Research, Company annual reports Source: D&B Research, Company annual reports Dun & Bradstreet