Toasting Indias finest firms

Mumbai, Apr 29 | Updated: Apr 30 2007, 06:02am hrs
As India Inc takes the global centrestage, The Financial Express FE500 offers a glimpse into the performance of major corporates based on several fundamental parameters. Compiled from published balance sheets of companies, the issue looks at financial results between April 1, 2005 and March 31, 2006. Some companies with June 2006 as the date for reporting results have also been considered.

The study includes all listed private and public sector companies, (excluding non-banking finance companies and banks). While overall sales rankings have been computed, other rankings (like assets, networth, gross profit and market capitalisation) pertain to the select FE500 list.

The study reveals that 2005-06 saw lower sales growth compared with 2004-05. The top ten, in terms of composite ranks, seemed slightly slower than the overall FE500 aggregate. Their sales growth at 18.52% was lower than the FE500 that recorded growth of 19.54%. Nine in the current top ten were part of the elite club in 2004-05 too. Bharti Airtel replaced ITC in 2005-06.

Breweries and large software companies stood out in terms of growth in 2005-06. Surprisingly, multinational pharmaceutical companies posted poor growth.

The first nine months (April-December 2006) results of the top 100 Indian corporates showed a significantly better performance. The sales of the top 100 increased 30.34% compared with the performance during the first 9 months of last year. This is markedly higher than the overall net sales growth of 19.54% reported by the FE500 in 2005-06. While the growth in sales has been significant, the increase in net profit can only be described as spectacular. The first 9 months of 2006-07 saw the top 100s net profit spurt 58.69%, which is also higher than the 12.66% profit growth for the FE500 companies in 2005-06.