Business Today
How we did it

When we decided to tweak the methodology of the BT500 this year, it was only the third time in our flagship listing's 24-year history.

When we decided to tweak the methodology of the BT500 this year, it was only the third time in our flagship listing's 24-year history. In 1993, we began with ranking companies on the basis of their market caps as on March 31. In 1997, we made the first change - ranking companies by average market capitalisation between April 1 and March 31. In 2002, we began using average market capitalisation between April 1 and September 30, to give the numbers more currency. And this year, we have reverted to the 12-month ranking, but with a twist - we have taken the period from October 1, 2015 to September 30, 2016. This gives us the dual advantage of having both 12 months' numbers, as well as the most recent numbers from the stock exchanges. However, the deciding metric - market cap - has remained the same.

So, when you see the main tables, along with the October-September market cap, we have also given the average market cap over the past two fiscal years for better understanding. And if you're really kicked by comparisons, go to page 166 where we have a series of tables ranking the companies by assets, income, profits as well as debt. Companies in the banking, financial services and insurance (BFSI) sector have not been ranked on these parameters, since their method of capturing and measuring these metrics is markedly different from all other sectors' companies.

The Process

For the purpose of our study, we used the Prowess database of the Mumbai-based Centre for Monitoring Indian Economy. To arrive at our listing, we began with a master sample of 5,528 listed companies. We used BSE market cap in all cases, except for those companies that are listed only on the NSE, which is very few. Companies that were not traded on a minimum of 20 per cent of the 246 trading days in the October 2015-September 2016 period were excluded. This reduced the number of companies to 2,820. Thereafter, we extracted the average market cap of each company over this period from Prowess, and used it to rank the top 1,000 companies. You can find the Top 500 from page 138 onwards, and the ranking of 501-1,000 companies have been put online at

The Other Parameters

Of course, we have not kept the study limited to market cap only. Metrics such as total income, net profits, total assets, debt, return on net worth (RONW) and return on capital employed (ROCE) have also been showcased for the reader to make discerning comparisons. For most companies, the financial year ending is on March 31. Where there are exceptions, we have mentioned so in the footnotes, also on page 138. ~

Research by Niti Kiran and Avneet Kaur

Get latest news & live updates on the go on your phone with our News App. Download The Business Today news app on your device
More from FEATURES