India’s Top 500 Value Creators 2023

38 | India’s Top 500 Value Creators 2023 [ OVERVIEW OF INDIA’S TOP 500 VALUE CREATORS ] FY23: SECTOR POSITIONS BASED ON KEY FINANCIAL METRICS (TOP 20 SECTORS) D&B has analyzed sector positioning of Top 500 companies with regards to different aspects like ƒ Total income v/s EBIT margins, FY23. ƒ Total income v/s Net Prof it margins, FY23. ƒ Total income v/s Return on net worth margins, FY23. The analysis helps to understand the position of our Top 20 Value Creator sectors with respect to major financial parameters. Total income vs. EBIT margins, FY23 Source: D&B Research, Company Annual Reports Indicates sector revenue based on Top 500 companies’ classification for FY23 DECODING THE TOP 20 VALUE CREATOR SECTORS’ EBIT MARGINS ƒ There are a total of 6 sectors out of the top 20 sectors with a total income exceeding 2 trillion INR and 8 sectors with EBIT (operating prof it) margins greater than 15% for FY23. Top 20 sectors account for ~66% of total income and ~60% of operating profits (excluding Banking, Financial Services, and Insurance). ƒ The Oil & Gas Exploration sector recorded the highest EBIT margins at 52%. Factors that contributed to the high operating profit margins included: 9 Rising oil and gas prices 9 Increased explorat ion activity 9 Focused cost optimization w h i c h i m p r o v e d operational efficiency ƒ Telecom Services sector witnessed high operating profit margin of 49%. Factors contributed to the high operating profit margins: 9 Growingdata consumption 9 I n c r e a s e d A v e r a g e Revenue Per User (ARPU) 9 Growi ng merger and acqui s i t ions act i v i t ies among telecom players ƒ The Power sector recorded high operatingmargin of 29% Factors that contributed to the high operating profit margins included: 9 Increase in power tariffs 9 Improved operat iona l efficiencies 9 Increased demand for power Dun & Bradstreet