India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 30  Mining – metals and minerals were positively impacted due to high commodity prices for both ferrous and non-ferrous metals. „ The top two sectors in terms of total income such as Oil – refining & marketing, and Banking sectors are in the bottom five when it comes to translating total income into net profit margins. Total Income v/s return on net worth, FY 2021 (Top 20 sectors) „ A total of 7 sectors amongst the top 20 represented sectors have Return on Net worth (RoNW) margins greater than 15% for FY 2021, with leading sectors like software and BPM, FMCG, Food and Beverages, Mining –metals andminerals, Automobiles – 2/3WOEM, Iron and Steel and Construction – infrastructure development. „ Top sectors like Oil – refining and marketing and Banks, have RoNW margins below 12%. Oil & gas exploration, Engineering projects / capital goods, and Automobiles – OEMs have RoNWmargins below 6% for FY 2021. ESG: The only way for sustainable and responsible growth Significance of ESG The COVID-19 pandemic, along with the surmounting environmental concerns, has brought sustainability to the forefront of the strategic decision making of India’s leading companies. Corporates are reinvigorating their business strategies to embrace Environment, Social, and Governance (ESG) proposition for their long-term value creation. Although ESG has come under focus post COVID-19 pandemic, it is not a new concept. The practice of ESG investing began in the 1960s. The COVID-19 pandemic impact has reinforced the importance for a more sustainable approach to investing. Source: D&B Research, Company annual reports Total Income in ( ₹ trillion) FY '21 Return on Net Worth 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% 0 2 4 6 Oil - Refining & Marketing Banks 12 14 16 Indicates sector revenue based on Top 500 companies classification for FY 2021 Dun & Bradstreet