Companies seek growth momentum: BS1000 analyses financial performance

Welcome to the 2025 edition of BS1000, the most comprehensive guide to India’s biggest listed and unlisted non-financial companies. This annual publication from Business Standard is unique in the sense that it is not only a ranking of India’s biggest listed and unlisted non-financial companies, but it also provides a glimpse into their financial and operational health. Besides their primary ranking based on annual revenues, BS1000 companies are also ranked on their financial sustainability index (FSI).

 

Companies with higher FSI ranking have stronger balance sheets, better profit to cashflow conversion, high return on capital, and also reward their shareholders with generous equity dividends. These companies are likely to withstand economic downturns much better than their lower-ranked peers and also tend to outperform on the bourses. For example, Reliance Industries tops this edition of BS1000 with consolidated revenues of ~9.22 trillion in Financial Year 2023-24 (FY24). Hyundai Motor India tops the FSI ranking, thanks to its cash-rich balance sheet and superior financial performance.

 

Similarly, BS1000 has analysed financial performance to rank India’s best 30 unlisted non-financial firms in terms of growth, profitability and balance sheet strength based on available data. FY24 was a year of slowdown for BS1000 companies with a sharp deceleration in revenue growth from high double-digit levels seen in the previous two years. BS1000 companies’ combined revenue was up by just 3.7 per cent in FY24, significantly lower than the 22.7 per cent and 33.9 per cent growth reported in FY23 and FY22, respectively. In contrast, their combined net profit was up by 31.8 per cent in FY24, a sharp reversal from 5.7 per cent decline reported in FY23. The slowdown has continued in FY25 with non-financial listed companies’ revenue up just 5.7 per cent year-on-year in the first nine months of the financial year.

 

This is causing anxiety in corporate boardrooms and is a concern in management commentaries and companies’ annual reports. The cover story looks at the slowdown and the contrast it shows when compared with India’s healthy macroeconomic indicators. The economy is expected to grow by 6.5 per cent in FY25, faster than the 10-year average GDP growth of 6 per cent. This has created a dichotomy and companies may need a new tool kit to regain their growth momentum. The second story looks at the unusual surge in the initial public offerings (IPO) of startups in India, marking a shift from previous trends where they often sought listings abroad. This transformation has positioned India as a preferred destination for startups aiming to go public. Barring the recent turbulence in the markets, this IPO boom is expected to continue going ahead.