A year of hope, new beginnings

Welcome to another edition of BS1000, the guide to India's biggest and financially most successful listed and unlisted companies, excluding banking, financial services, and insurance (non-BFSI) firms. Like in the past, the 2024 edition not only provides the annual revenue-wise ranking of India's biggest non-BFSI companies, but it also provides actionable data.

The companies have been ranked on their financial sustainability index (FSI) based on their past performance. Those ranking higher on the FSI index have superior balance sheets, strong cash flows, and higher profitability. They typically outperform peers: In the product market and on the bourses. Similarly, BS1000 analyses the financial performance of India’s top 250 non-BFSI unlisted companies to pick the best 30.
 

The BS1000 companies continued their post-pandemic growth momentum in FY23. Their combined revenue grew at a double-digit pace for a second year in a row and crossed Rs 100 trillion for the first time last financial year. Their combined revenue, at around Rs 119 trillion (about $1,476 billion), was up almost 23 per cent from Rs 96.9 trillion ($1,302 billion) in the previous year. The companies’ revenue growth outpaced the country's economic growth and consequently their contribution to gross domestic product (GDP) increased.
 

India's GDP at current prices grew 14.21 per cent in FY23 to around Rs 270 trillion ($3,345 billion). BS1000 firms' combined revenue was equivalent to 44.1 per cent of India’s GDP in FY23, up from 41 per cent in FY22, and was the highest contribution to GDP since FY16. For comparison, BS1000 companies' revenue-to-GDP share had fallen to a low of 36.5 per cent in FY21 from an all-time high of 62.5 per cent in FY09.
 

The BS1000 companies, however, disappointed on earnings as their combined net profit was down 7.3 per cent year-on-year at Rs 7.27 trillion (around $90.2 billion) in FY23. As a result, their combined net profit-to-GDP ratio fell to 2.7 per cent in FY23, from a decadal high of 3.26 per cent in FY22.
 

Momentum in corporate revenue, profit growth and India’s GDP growth in FY24 have rekindled hopes of better capital expenditure by corporate India in FY25 – a missing piece in the country's growth story so far. The cover story explores this possibility, given macroeconomic tailwinds.
 

Our second story looks at startups. After scorching growth in the pandemic, the sector reversed sharply, with sentiments turning sour, valuations taking a hit, and funding drying up. While quite a few startups have made a comeback, there are new hurdles. Fintechs are under regulatory scanner and edtech has its own challenges. So, what next for India’s startup sector?