Overview: Delivering Results Amid Challenges
The BW Real 500 list is one of India’s most comprehensive rankings of successful businesses. During 2021-22 India Inc. continued to jostle with the second wave of the pandemic and its ill-effects on the business. And later the global headwinds arising out of the Russia-Ukraine conflict. Despite that, companies clocked in a healthy growth across vital parameters including revenue and profits.
Research Methodology
The BW Real 500 list takes into account the income generated on the assets that are created by these companies.
Like last few year, we partnered with TechSci Research that selected only listed organisations based on their turnover for the financial year 2021-2022 (FY22) and ranked them based on 'Total Income'. The number crunching was done based on publicly available data sourced from BSE, NSE, Annual Reports and public filings etc.
Once the list of listed companies in each category (of Top-500 Non-Financial Institutions, Top-10 Banking institutions, Top-20 Non-Banking Financial Companies) were prepared basis revenues, TechSci examined other indicators. The definition of some these indicators included for example, 'Total Asset'. It is the total amount of assets owned by a company. TechSci has defined 'Total Income' as the total amount of money that a company earns by selling its goods and/or services in the financial year under consideration. While terms like 'Profit-Before-Tax' or Profit-After-Tax' are self-explanatory, the term 'Reserves and Surplus' included the summation of Capital Reserves, Retained earnings, Fair Value Reserves, Hedging Reserves, Asset Revaluation Reserves, Foreign Currency Translation Reserves and the Statutory Reserves.
Healthy Numbers
The BW Real 500 ranking this year exhibits a considerable improvement in key balance sheet parameters of the companies.
In size and scale, the top 15 companies accounted for nearly 70 per cent of the total income generated by the top-50 companies and almost 50 per cent of the total income generated by all 500 companies in the list. The top-50 companies accounted for 70.8 per cent of the total income generated by 500 companies. During FY22, the top-10 companies together generated nearly 50 per cent more income than the top-10 companies featured in the last list thereby signalling an overall healthier financial growth.
CPSEs Lead from front
Like previous years, the Central Public Sector Enterprises (CPSEs) dominated the top-15 list led from the front by the oil and gas sector firms. While the likes of IOC, ONGC, BPCL, and HPCL continued their hold among the top-6 companies, NTPC was also holding its position strong. During FY22, the dividend declared by the CPSEs jumped by 57.5 per cent to Rs 1.15 lakh crore compared to FY21 where it was Rs 0.73 lakh crore.
Mukesh Ambani-led giant Reliance Industries continued to lead the private sector space clocking record numbers. It emerged strongly as India’s largest company by market capitalisation (Rs 17,81,841 crore), by revenue (Rs 7,92,756 crore), and by profitability (Rs 67,845 crore).
Life Insurance Corporation of India (LIC) made a direct entry at third-spot owing to its vast assets, income and strong showing at the bourses post IPO.
Others in the top 10 include three companies from the Tata Group—Tata Motors (Rank 7), Tata Steel (Rank 8), and Tata Consultancy (Rank 10). Rajesh Exports (Rank 9) slipped three places due to business challenges resulting in lower income than FY21.
Overall, FY22 was a much better year for India Inc. when compared to previous two financial years. With every passing quarter, companies are clocking improved growth, stronger numbers and an overall improved performance. These are positive indicators for India as an overall growth story. Amen!
ashish.sinha@businessworld.in
Knowledge Partner: TechSci Research
