India’s best unlisted companies

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 doubledigit 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. ■