This is the 15th edition of BT 500, which means we’ve been publishing this listing pretty much ever since Business Today was launched. Needless to say, our methodology has evolved over the years. But for the last three years now, it has remained unchanged.
The deciding metric in the ranking of the top 500 companies is their average market capitalisation on the Bombay Stock Exchange (BSE) for the first half of the current financial year—that is, the period between April 1 and September 30, 2007. Therefore, companies are ranked in order of their average market cap during that period. Private companies are listed separately from public sector units (PSUs), including public sector banks and financial institutions, although the parameters and the method used to rank them are the same. There’s a third category of companies: The Next 500, which includes companies with ranks between 501 and 1,000 in terms of their market capitalisation.
How we did it
ITo arrive at our listing, we began with a master sample of 4,916, being the number of all listed companies on BSE. Government-owned companies and banks were excluded and ranked separately.
The other parameters
Assets or sales or net profits, on the other hand, don’t provide an idea of the company’s future performance. Names of the companies in the BT 1000 (BT 500 plus the Next 500) have been indexed alphabetically in a separate section for quick look up.
Also, this year we have published an expanded BT 500 By the Numbers to give you further interesting insights into the market cap gains and losses. Data was sourced from CMIE’s Prowess database.
Sales: Operating sales, excluding other income.
Net profits: Profits after tax, interest and depreciation.
Market capitalisation: Stock price multiplied by the number of shares outstanding.
Total assets: Fixed assets plus current assets.
Rota: Net profit by total assets.
Roce: Profit (usually profit before interest and tax) as a percentage of the capital employed (fixed assets + circulating capital - current liabilities).