WHEN THE GOING GETS TOUGH...

AMID A CHALLENGING MACRO, FORTUNE 500 INDIA COMPANIES HAVE CREATED A RECORD OF SORTS BOTH IN TERMS OF TOTAL INCOME AND PROFITS.

- V. KESHAVDEV

• 283 FIRMS HAVE CLOCKED OVER $1 BN IN REVENUE IN THIS YEAR’S FORTUNE 500 INDIA LIST

• 50 COMPANIES HAVE A HEFTY 64% SHARE IN TOTAL INCOME

• 220 FIRMS HAVE CONSISTENTLY FEATURED IN THE LIST FOR THE PAST 15 YEARS

SANTA CLAUS might be mythical, but in recent years, India Inc.’s numbers have begun to resemble a sack of real goodies, brimming with the glitter of growth and resilience. Unlike the metaphorical gifts delivered with jingling bells and reindeer sleighs, the Fortune 500 India companies have provided the hard, quantifiable reality of economic heft, steadily growing their absolute income and profits over the years.

The analogy is fitting, and here’s why: India Inc.’s profit pool as a percentage of gross domestic product (GDP) has climbed to a 13-year high, driven by robust bottom-line improvements in financials, energy, and automobile firms. The profit-to-GDP ratio of the marquee list rose to 4.7% in FY24, up from 4.06% in the previous year. The cumulative profit pool grew at a remarkable 27.5% year-on-year (YoY) in FY24, reaching an all-time high of ₹13.95 lakh crore even as the cumulative revenue (total income) of the universe has hit a record ₹157 lakh crore.

This performance is particularly striking when placed in context. Profit growth had cooled to 9.7% YoY in FY23, following a record 75% surge in FY21. Yet, the headline YoY growth figures only tell part of the story. The real standout is the absolute profit pool, which, after entering the double-digit club last year at ₹10.94 lakh crore, has expanded further in FY24. It’s a testament to the enduring resilience and adaptability of corporate India.