BS 1000: Vaccine maker to logistics major, here're the top unlisted firms

As in the previous editions of BS1000, the list of the country's top unlisted companies is dominated by the Indian subsidiaries or associates of global multinationals (MNCs). In all, 17 out of the best 30 unlisted companies in the league table are local subsidiaries of global multinationals. Some such entities in the top 30 list are DHL Logistics India, Expeditors International India, Posco Maharashtra Steel, Toyota Kirloskar Motor, Kia India, Microsoft India (R&D), Suzuki Motorcycle India, ArcelorMittal Nippon Steel India, and Google India.

A large presence of MNCs in the unlisted list is not a surprise. Like their listed peers, Indian subsidiaries of global MNCs are market leaders with access to their parents’ global network and supply chain, a strong brand equity, world-class products and technology, and a well-capitalised balance sheet.

Besides MNCs, the top 30 list also includes two public-sector companies: Orissa Mining Corporation and HLL Life Care.

There are six companies from automobile and ancillaries in the top 30 league table for FY23 and four companies each from mining and metals and information technology-software sectors. There are two new entrants, each from the power and transport and logistics industries. In contrast, MNCs from manufacturing and consumer goods space — Pernod Ricard, Mondelez India, JCB, Caterpillar and Reckitt Benckiser (India) — which were in the top 30 list last year, dropped out. The year also saw exits of pharma companies. There’s only one entry from this industry in 2023 – Bharat Biotech International – compared to four in FY22.

Analysts attribute this to a sharp rise in revenues and profits of metal and mining companies due to a turnaround in the global metal cycle. Automotive companies gained from double-digit growth in sales volumes and higher price realisations.

Bharat Biotech, a vaccine maker, is the top unlisted company in FY23 with 458 per cent year-on-year (Y-o-Y) revenue growth and 587 per cent net profit Y-o-Y growth last financial year. 

Methodology

The best 30 unlisted companies are based on a composite score of their ranking on revenue growth, reported net profit growth, increase in net worth, debt-to-equity ratio and return on net worth. These firms offered the best combination of faster growth in FY23, lower balance sheet leverage and high return on equity. They were selected from the universe of 250 biggest unlisted companies in terms of their revenues in FY23.

Methodology and notes

1. Companies are ranked by their latest audited annual revenues on or before the year ended September 30, 2023. The numbers include net sales from the core business, besides other recurring income and non-recurring and extraordinary income, but exclude excise duties and other  indirect taxes.

2. Wherever possible, figures are on a consolidated basis and include the results of a company’s subsidiaries, its associates and joint ventures, as reported in its consolidated accounts.

3. The revenues, operating profit, net profit, salary, taxes, and dividends have been annualised if the reported numbers are not for 12 months. Taxes include corporate taxes, deferred tax, cess and dividend distribution tax.

4. Market capitalisation is the average for three months ended December 2023.

5. Net profit, net worth and assets have been adjusted for minority interests and exclude revaluation reserves. Net profit after tax is as reported and includes extra-ordinary and non-recurring income.

6. The list only includes non-financial companies and excludes banks, non-banking finance companies, term-lending institutions, home loan companies, Insurance, brokerages, investment companies and those engaged in securities trading and related industries. 

7. To qualify for the BS1000 list, a company must be listed and its shares should be traded on either of the two leading stock exchanges in India — BSE or NSE. The company should be incorporated in India and declare its financial results in Indian rupees.

8. The revenue figures of trading companies, gems & jewellery makers, edible oil refiners and technology products resellers have been adjusted to reflect value addition. These industries are characterised by lower value addition — the difference between value of raw material purchases and sale of final products — compared with manufacturing companies in sectors such as automobiles, textiles, chemicals, consumer goods, capital goods and  metals. These companies also have much lower investment in plant and equipment. Putting them in the same list (without revenue adjustment) would go against manufacturing companies.  

9. For trading companies, revenues refer to gross trading margin, and were derived by deducting the cost of purchase of traded/finished goods from their reported gross revenues. This has been done to bring the 

results of Indian trading companies on a par with international norms. However, it must be mentioned that there are as yet no separate accounting rules for trading firms in India. 

10. Reported revenues of gems & jewellery makers, edible oil refiners, and technology product distributors and resellers were adjusted in a similar manner, if their average gross trading/manufacturing margin in the last three years was less than 10 per cent of their net sales.  

11. The numbers have been sourced from Capitaline Plus corporate database maintained by Capital Market Publishers India Ltd. All numbers are as reported in the database, and are in Rs  crore, unless specified.

12. The city refers to the location of the company’s head office or its corporate headquarters, and not necessarily its place of incorporation or registered office.

13. Financial Sustainability Index (FSI) broadly indicates “How financially sustainable are a company’s operations?” A higher rank indicates a company’s greater staying power and likelihood of performing better in favourable times. FSI is calculated by assigning 10 per cent weight each to market cap, revenues, ratio of equity to debt, cash flow to interest, cash flow to enterprise value, and market cap to total assets; and 20 per cent weight each to ratio of total income to total assets, and retained earnings to total assets.

14.Unlisted companies are compiled as available and  the methodology remains the same.

15. Abbreviations used: OPM – operating profit margin; NPM – net profit margin; RONW – return on networth; ROCE – return on capital employed.

Data has been compiled by BS Research Bureau

• Industry-wise tables

• Unlisted companies

• Alphabetical Index