Business Today - - BT 500 -

USI­NESS TO­DAY has been rank­ing In­dia’s largest com­pa­nies – BT 500 – since 1993 based on their mar­ket cap­i­tal­i­sa­tion. In the early days we based it on the mar­ket cap of the com­pa­nies as on March 31. Like in ev­ery­thing else, there is change. In 1997, we took a close look at the method­ol­ogy to make the first change. We then started rank­ing com­pa­nies based on their mar­ket cap dur­ing the fis­cal – April 1 to March 31. In 2002, we be­gan us­ing av­er­age mar­ket cap between April 1 and Sep­tem­ber 30. In 2016, we re­verted to the 12-month rank­ing, tak­ing the pe­riod from Oc­to­ber 1 to Sep­tem­ber 30. This gives you the ad­van­tage of look­ing at not just the 12 months’ num­bers but also the most re­cent num­bers from the stock ex­changes.

When you look at the main ta­bles, along with the Oc­to­ber-Sep­tem­ber mar­ket cap, we have also pro­vided the av­er­age mar­ket cap over the past two fis­cals for a bet­ter un­der­stand­ing of how the com­pany per­formed. Later, on Page 116 we have a se­ries of ta­bles that rank the com­pa­nies by profit af­ter tax, to­tal in­come and as­sets. Com­pa­nies in the bank­ing, fi­nan­cial ser­vices and in­sur­ance (BFSI) sec­tor have not been ranked on th­ese pa­ram­e­ters as their method of cap­tur­ing and mea­sur­ing th­ese met­rics is markedly dif­fer­ent from all other sec­tors. In the ta­bles, com­pa­nies that fall un­der the BFSI sec­tor have been high­lighted so that you can eas­ily iden­tify them.

The Process

For the pur­pose of our study, we used the Ac­cord Fin­tech’s Ace Eq­uity database. To ar­rive at our list­ing, we be­gan with a mas­ter sam­ple of 5,733 listed com­pa­nies. We used BSE mar­ket cap in all cases, ex­cept for those com­pa­nies that are listed only on the Na­tional Stock Ex­change or NSE, which are very few. Com­pa­nies that were not traded on a min­i­mum of 20 per cent of the 247 trad­ing days in the Oc­to­ber 2017-Sep­tem­ber 2018 pe­riod were ex­cluded. This re­duced the num­ber of com­pa­nies to 3,462. There­after, we ex­tracted the av­er­age mar­ket cap of each com­pany over this pe­riod (Oc­to­ber 2017-Sep­tem­ber 2018) and used it to rank the top 1,000 com­pa­nies. You can find the Top 500 from page 86, and the rank­ing of 501-1,000 com­pa­nies can be ac­cessed on­line at www.busi­nessto­ The Other Pa­ram­e­ters

The study is not lim­ited to mar­ket cap. Met­rics such as to­tal in­come, net prof­its and to­tal as­sets, debt, re­turn on net worth (RONW) and re­turn on cap­i­tal em­ployed (ROCE) have also been show­cased for the reader to make dis­cern­ing com­par­isons. For most com­pa­nies, the fi­nan­cial year end­ing is on March 31. Where there are ex­cep­tions, we have men­tioned so in the foot­notes, also on page 86.

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