Business Today
How We Did It

This is Business Today's fourth edition of India's Fastest-Growing Emerging Companies.

This is Business Today's fourth edition of India's Fastest-Growing Emerging Companies. The aim is to find companies that have done well in difficult times and have a promising future. The methodology has undergone a transformation this time in terms of segmentation and scale of business to focus on actual emerging trends among companies.

We included both listed and unlisted companies in our survey. However, unlike last year, we changed the revenue benchmarks to between Rs500 crore and Rs1,000 crore. And, it gave satisfactory results.

The study was done in July 2017 using the Ace Equity database. At that point, not many companies had filed their audited data for 2016/17, but we went ahead and made efforts to capture the latest picture for you. Data for 2016/17 was available for companies that had filed their annual reports for 2016/17. In some cases where the 2016/17 annual reports were not yet filed, we took the unaudited data for 2016/17, sourced from the database. Data for 180 companies in the revenue band of Rs500-1,000 crore was available for financial year 2016/17.

The four years (three growth periods) considered for the study are - 2013/14, 2014/15, 2015/16 and 2016/17. All total income and profit numbers were standalone and taken net of extraordinary and exceptional items. To enable apples-to-apples comparison, we split the universe of companies into three segments - manufacturing, services and agriculture. Foreign companies, those in the BFSI (banking, financial services and insurance) segment, and trading companies were excluded from the study. These companies were excluded because their incomes are handled differently from that of manufacturing and services companies. Foreign companies were excluded because we wanted to identify Indian emerging companies. After these eliminations, the remaining companies were taken to the next stage. As a first step, data of companies with non-12 month accounting periods - only data for between nine months and 15 months was considered - was annualised, so that the companies could be properly compared. At this point, several filters were brought in, and companies were eliminated if they:


  • Had suffered a loss in the final year of the study
  • Suffered a loss in more than one year out of the three years of the study period
  • Total income dipped more than 10 per cent in the final year of the study
  • Total income dipped for two or more years in the three growth periods.

After all the eliminations, we were left with 115 companies for the final evaluation. We calculated three-year compounded annual growth rate (CAGR) for each company, split them into the segments - manufacturing, services and agriculture, and eliminated companies under the median CAGR in each segment. For the final sets of companies, we calculated the average of the three periods of year-on-year growth, because the average growth can capture the peaks and troughs in between growth periods. The final ranking was done on this metric.~


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