Dun & Bradstreet announces Rolta Corporate Awards 2008

Net Profit of Top 500 Companies up by 27% in FY08

Dun & Bradstreet (D&B), the world’s leading provider of global business information, knowledge and insight, today announced the Dun & Bradstreet – Rolta Corporate Awards 2008. The awards felicitated 52 of India’s leading corporate names across sectors. The occasion also marked the launch of the ninth edition of Dun & Bradstreet’s premier publication, India’s Top 500 Companies
2008. The D&B-Rolta Corporate Awards 2008, closely tied to D&B’s study on India’s Top 500 Companies 2008, seek to recognize the twin virtues of size and growth in corporate India.

D&B’s India’s Top 500 Companies 2008 was released by Mr David J Emery, President – Asia Pacific, Dun & Bradstreet, who graced the occasion as the Chief Guest. Mr M S Sundara Rajan, CMD, Indian Bank was the Guest of Honour while Mr K K Singh, CMD, Rolta India Ltd. delivered the key note address at the event.

Presenting the awards, Mr David Emery said, “51 new companies have made it to the Top 500 companies list in this year’s edition. This clearly underscores the growth opportunities that the Indian economy has provided over the past three years, opportunities that have been eagerly grabbed by these ambitious and innovative companies. On the other hand, as many as 31 of the 52 sectoral winners have retained their pole position from the last round of the Corporate Awards. This is indeed commendable – particularly as we see a world around us that is changing so quickly. I would like to congratulate all the award winners tonight as well as all those companies that have featured in the Top 500.”

Speaking at the Awards ceremony, Dr. Manoj Vaish, President & CEO – India, Dun & Bradstreet said, “In FY08, PAT of the Top 500 companies as a whole, grew at 27% y-o-y, while aggregate Total Income grew at 21%. The consistent growth and resilience shown by corporate India is a testimony to the strong economic fundamentals for the economy. ” “However, 2009-10 will be a challenging year for the Indian corporate sector, as it will test its ability to withstand the vicissitudes in the economy. Much of the groundwork laid out in the past year will define the ability of individual companies to ride out this period of slowdown,” he added.

Dun & Bradstreet – Rolta Corporate Awards 2008

The base universe of the companies considered for the D&B-Rolta Corporate Awards are those covered under the publication – India’s Top 500 Companies. The selection procedure to identify the top companies in each sector is based on a proprietary financial model, developed by Dun & Bradstreet India. This model is based on the premise of recognizing the twin virtues of size and growth of companies. Financial aggregates were identified to fulfil this premise and weights were assigned to each. The final ranking of the companies was based on a composite score of these weighted parameters. The eight parameters considered in ranking the companies for the awards include: Total Income, Net Profit, Net Worth, Net Profit Margin, Return on Net Worth, Average Market Capitalisation for FY08, Growth in Total Income and Growth in Net Profit.

Dun & Bradstreet’s India’s Top 500 Companies 2008

The publication, ‘India’s Top 500 Companies 2008’ profiles India’s most respected and high performing companies. The 2008 edition is the 9th Edition of the publication. The criteria considered for the ranking included Total Income, Net Profit and Net Worth. The study includes both private sector companies as well as listed public sector enterprises (PSEs). The companies were short listed on the basis of their market capitalisation on the Bombay Stock Exchange and the National Stock Exchange. The publication captures the underlying transformation witnessed in the Indian corporate arena. The changing structure of India Inc. is underscored by the fact that 51 new companies from diverse sectors debuted on the Top 500 list this year. The buoyancy of the economy between FY06-FY08 is mirrored in the performance of the

Top 500 companies over the three editions of the publication, as is captured below:

	India’s Top 500 Companies – 2006	India’s Top 500 Companies – 2007	India’s Top 500 Companies – 2008
TI Growth	21.0	28.4	21.6
PAT Growth	27.8	36.9	27.5
NPM	9.9	9.8	10.7

Growth over previous financial year                 All figures in (%)

Some other key highlights from the publication include:

• The strong growth of over 21% in the aggregate Total Income of the Top 500 companies in FY08 underscores India’s growth potential. In fact, the Total Income of all 500 Companies was equivalent to 48% of India’s GDP at market prices in FY08. The companies profiled in the publication account for approximately 84% of BSE’s market capitalisation for the same period.
  

• From a profitability perspective, the aggregate Net Profit of the Top 500 Companies grew by a robust 27% in FY08.
  
• Strong demand in FY08 across most sectors saw capital expenditure plans of the Top 500 companies growing by over 57%. Key manufacturing sectors like Cement, Iron and Steel, Power and Oil – Refining and Marketing reported over 37% increase in capital work-in-progress on a y-o-y basis.
  
• The total debt for the Top 500 companies grew by 11% y-o-y to Rs 5,543.8 bn. Immediate working capital requirement for operations led companies to seek short term borrowings. This led to a y-o-y growth of about 47% in short term loans, which stood at Rs 1,584.6 bn. On the one hand, sectors like Retail required higher working capital due to ambitious expansion plans while on the other, export oriented sectors like food and agro processing sought short term funds due to high receivables.
  
• The contribution of Public Sector companies in aggregate TI stood at Rs 10,617.4 bn, though in terms of growth and profitability, private and foreign companies performed well.
  

	India’s Top 500 Companies – 2008
	Private Sector Companies	Foreign Companies	Public Sector Companies
No. of Companies	379	57	64
TI Contribution (%) to Aggregate	47.2	6.7	46.1
TI Growth (%)	26.2	23.1	17.0
PAT Growth (%)	35.4	24.1	18.0
NPM (%)	11.7	11.6	8.6

Growth over previous financial year

• Though large cap companies contributed over 73% to the Total Income, it was the mid cap companies that recorded higher growth of over 22.5% in their Total Income as compared to the large and small cap companies, which grew by 21.4% and 19.8% respectively.
  

The Top 500 companies (excluding banks and FIs / NBFCs/ Financial Services) enhanced their liquidity position by recording over 27% growth in their cash/bank balance and investments

For more details visit http://www.dnb.co.in

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