India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 29 „ There are a total of 9 sectors out of the top 20 represented sectors with a total income exceeding 1 trillion INR and EBIT margins greater than 15% for FY 2021. They account for 46% of total income and 77% of operating profits for Top 500 companies during FY 2021. The major sectors include Banks and Financial Services, Software and BPM, Iron & Steel, Power, Pharmaceuticals.  Software and BPM, pharmaceuticals have high margins driven by export focus model  Operating margins for commodities sectors like Iron & Steel were driven by a sharp increase in prices of both ferrous and Non-Ferrous Metals driving realization increase for Iron & Steel companies for FY 2021. „ Sectors like Insurance, Oil – refining and marketing, Automobile – OEMs and Engineering project / capital goods are the sectors with single digit operating margins.  Operating margins of Automobile – OEMs are impacted due to 13.5% de-growth in domestic sales in FY 2021.  Engineering projects / capital goods operating margins were impacted due to slow execution of projects / tepid demand from end use industries during FY 2021. Total Income v/s net profit margins, FY 2021 (Top 20 sectors) „ Top 20 represented sectors represents ~85% of total income and ~88% of net profits for FY 2021. „ None of the Top 20 represented sectors had negative net margin for FY 2021. Majority of the sectors were impacted positively, driven by lower COGS, a decline in interest rates and reduced corporate taxes. A total of 13 sectors within Top 20 represented sectors had net margins greater than 10% for FY 2021. „ Mining – metals and minerals, Financial Services, Software and BPM have net profit margins greater than 20% for FY 2021. Total Income (in ₹ trillion), FY '21 Net Profit Margin FY '21 Software and BPM Insurance FIs / NBFCs / Financial Services Iron & Steel Power Automobiles Pharmaceutical Construction - Infrastructure Development Cement Gas - Processing, Transmission & Marketing Automobile - Two/Three Wheelers Food and Beverages Oil & Gas Exploration FMCG Non-Ferrous Metals Mining - Metals & Minerals Engineering Projects/ Capital Goods Chemicals 0% 5% 10% 15% 20% 25% 30% 35% 0 2 4 6 Oil - Refining & Marketing Banks 12 14 16 Source: D&B Research, Company annual reports Indicates sector revenue based on Top 500 companies classification for FY 2021 Dun & Bradstreet