India’s Top 500 Value Creators 2023

36 | India’s Top 500 Value Creators 2023 [ OVERVIEW OF INDIA’S TOP 500 VALUE CREATORS ] THE REMARKABLE TURNAROUND OF BANKS: FROM LOSSES TO RECORD PROFITS Thebankingsectorhasundergone a spectacular turnaround in the last five years, recording a net profit growth of 121%, the highest among the top 20 Value Creator sectors. Banks ’ rev i val has been d r i v e n b y n u m e r o u s go v e r nmen t i n i t i a t i v e s and reforms, including a significant recapitalization program. Banks profitability also improved because of improved management of bad loans, higher interest income, and lower credit costs. O t h e r s e c t o r s t h a t outperformed on net profit growth in the last five years were Fer t i l i sers , Mining - Metals & Minerals, and Chemicals – all growing above 20%. At the same time, in terms of net profit growth in the past five years, the Oil - Refining & Marketing sector was the laggard with only 0.5% growth, with high crude oil prices denting profitability. ROBUST RETURNS: VALUE CREATORS DELIVER SPECTACULAR MARKET VALUE The market value of the Top 500 Value Creators stands at INR 208 trillion as of March 2023, representing about 80% of the aggregate market capitalization of BSE. In the last five years (FY19-FY23), Value Creators have created total shareholder’s return (TSR) of INR 107 trillion, generating an average TSR about 227%, as compared to NSE 50 Benchmark return of 64.5% over the same period. Furthermore, 14 out of the top 20 sectors delivered a TSR over the Nifty benchmark of 64.5%. Chemicals, Food&Beverages, and Software and BPM have been the leading sectors, while Oil & Gas Exploration, Insurance, Automobile - Two/ Three Wheelers have been the laggards. Total Shareholder’s Return % (FY23 over FY18 or listing/trading day (later)) Source: D&B Research, Company Annual Reports Dun & Bradstreet