India’s Top 500 Value Creators 2023

India’s Top 500 Value Creators 2023 | 39 [ OVERVIEW OF INDIA’S TOP 500 VALUE CREATORS ] ƒ Pharmaceuticals and Software and BPM sectors have high EBIT margins of 24% and 23% respectively, driven by their export focus model. ƒ Oil – Refining & Marketing, and Fertilisers are the laggards among the top 20 sectors, recording lowest operating profit margins of 6% and 7% respectively. ƒ Operating profit margins of Oil – Refining & Marketing were impacted due to rising crude oil prices ƒ Factors that contributed to the low operating profit margins included: 9 The Russia-Ukraine war 9 supply chain disruptions These led to higher input costs for refiners, thereby squeezing their margins Total income v/s Net Profit margins, FY23 Source: D&B Research, Company Annual Reports Indicates sector revenue based on Top 500 companies’ classification for FY23 MINING MOST PROFITABLE SECTOR, FOLLOWED BY FIS / NBFCS / FINANCIAL SERVICES ƒ In FY23, none of the Top 20 sectors had a negative net profit margin. ƒ Mining – Metals & Minerals recorded the highest net profit margin of 34.8%. The FIs/NBFCs/Financial Services sector has been the second most profitable sector with a net profit margin of 27.9%. This was driven by strong credit growth and improved asset quality. ƒ The top sector in terms of total income i.e., Oi l – Refining & Marketing fell to the very bottom when it comes to translating total income into net profit margins. ƒ Net prof i t margin of the Oil – Refining & Marketing sector declined in FY23 due to surge in crude oil prices amidst static retail fuel selling prices and higher exchange losses. However, a notable net profit margin growth has been observed in the recent months because of falling crude oil prices. Dun & Bradstreet