Reflection of time

Health care firms played a vital role during the pandemic

The number of new Covid-19 cases has been declining continuously over the past several weeks, which is allowing businesses to get back on their feet after two years of unprecedented disruption. The outbreak of the pandemic and the scale of ensuing disruption caught everyone off guard. The sudden imposing of the nationwide lockdown changed business reality for firms overnight. While the lockdown was perhaps necessary, considering the rapid spread of the virus in other parts of the world and the limited availability of information, businesses had to quickly adjust to the new reality, particularly those performing crucial functions such as health care and technology support. The extraordinary pace at which some of these businesses adapted and supported the rest of the system was also reflected in this year’s Business Standard Annual Awards for Corporate Excellence.

The distinguished jury chaired by Aditya Birla Group Chairman Kumar Mangalam Birla picked winners in four of the seven categories from the health care and hygiene sectors, while one each came from technology and financial services. The jury unanimously decided to award Prathap C Reddy, founder and chairman of Apollo Hospitals Enterprise, in the lifetime achievement category. Cipla’s overall performance and its contribution to the health care sector made it the company of the year. Procter & Gamble Hygiene & Health Care was voted as the star multinational corporation, while Dr Lal PathLabs emerged as the star in the SME category. Among other categories, Chief Executive Officer (CEO) and Managing Director of Infosys Salil Parekh was awarded CEO of the year. Mr Parekh’s leadership has helped the firm grow in difficult times, which also presented opportunities for the information technology sector. The company’s revenues grew by 10.7 per cent, while net profits expanded by 16.6 per cent, year- on-year, in 2020-21. The overall performance of the technology major has also been acknowledged by the stock market. Its market value over the last three years has gone up by a compound annual growth rate of about 40 per cent.

The start-up of the year award went to Zerodha Broking. This award also represents the current time in its own way. New-age brokerage firms have democratised stock market participation in a big way. A record number of demat accounts have been opened over the past few years, which has led to a significant increase in retail participation in the stock market. This is also said to be one of the biggest reasons why Indian stock markets have remained fairly stable despite massive selling by foreign portfolio investors over the past several months. Further, in the category of star public sector undertaking, the jury selected Bharat Electronics for its consistent financial performance.

Along with financial performance, the jury also talked about the contribution made to society during the pandemic and the environmental, social, and governance standards of companies. It is worth highlighting here that some members of the jury also noted the contribution made by unlisted companies during the period. However, they could not be considered because the required financial information is not available in the public domain. While a large number of Indian companies, particularly in the listed space, have weathered the storm and emerged stronger, the next challenge will be to sustain growth over the medium term. Much improved corporate and bank balance sheets should help in this context.