ET 500: Companies that are growing the fastest regardless of competition
Growth is Life' is the motto of one of India's biggest corporates. And rightly so as investors stand to gain only when a company shows it can grow fast.
Even in the ET 500 list there are some that stand apart. These are companies that are scorching the tracks regardless of competition, emerging as the fastest growing companies' in the ET 500 ranking.
There are companies that are scorching the tracks regardless of competition, emerging as the fastest growing companies' in the ET 500 ranking
Growth is Life' is the motto of one of India's biggest corporates. And rightly so as investors stand to gain only when a company shows it can grow fast.
Even in the ET 500 list there are some that stand apart. These are companies that are scorching the tracks regardless of competition, emerging as the fastest growing companies' in the ET 500 ranking.
Full coverage: ET 500 - India's biggest companies
Kerala-based Manappuram FinanceBSE 1.12 % tops the list of fastest-growing companies for the second consecutive year. A secular rise in gold prices has helped the company to expand its business. The surge in profits was driven by a rapid increase in assets under management which rose at a four-year compounded annual growth rate of over 112% to Rs 11,630 crore at the end of FY12.
That's what helped another gold finance company,Muthoot FinanceBSE 0.12 %, the largest in the business. It was the third fastest-growing in the ET 500 club.
Oil exploration firm Cairn IndiaBSE -0.08 %, now a part of the Vedanta group, became the second-fastest company this year, helped by higher production from its Rajasthan block over the last three years. It ramped up production to 175,000 barrels a day boosting profits.
IL&FS Transport has systematically expanded by securing new projects, achieving speedy financial closures and commencing commercial operations, placing it at number four in the list of the fastest-growing companies in the ET 500 list. The turnover of the company has grown at a CAGR of 133% over the last three years due to the larger number of projects awarded by the NHAI.
The emergence of Bajaj FinanceBSE 6.16 % as one of India's largest two-wheeler financiers in FY12 makes it a natural candidate for our list of fastest-growing companies. The company has expanded its reach by making funds available through more than 350 dealer locations and 1,170 sub-dealers across the country. It acquired over 45% of the customers through the direct cash collection model aimed primarily at the unbanked rural and semi-urban consumers.
It has also emerged as the largest consumer durables financier with a presence in 79 cities helping finance 10% of all consumer electronics goods.
Kwality DairyBSE 0.64 % has grown by leaps and bounds during the last few years as it launched brands such as 'Dairy Best', 'Desi Ghee' and 'Livlite' while forging tie-ups with large customers like the Indian Railways and some of India's biggest temples for marketing its products.
The company procures milk directly from about 3,50,000 farmers through a collection network of milk chilling centres built across 5,000-6,000 villages. The company is also expanding its global footprint through a subsidiary which has been formed in the UAE.
Kerala-based Manappuram FinanceBSE 1.12 % tops the list of fastest-growing companies for the second consecutive year. A secular rise in gold prices has helped the company to expand its business. The surge in profits was driven by a rapid increase in assets under management which rose at a four-year compounded annual growth rate of over 112% to Rs 11,630 crore at the end of FY12.
That's what helped another gold finance company,Muthoot FinanceBSE 0.12 %, the largest in the business. It was the third fastest-growing in the ET 500 club.
Oil exploration firm Cairn IndiaBSE -0.08 %, now a part of the Vedanta group, became the second-fastest company this year, helped by higher production from its Rajasthan block over the last three years. It ramped up production to 175,000 barrels a day boosting profits.
IL&FS Transport has systematically expanded by securing new projects, achieving speedy financial closures and commencing commercial operations, placing it at number four in the list of the fastest-growing companies in the ET 500 list. The turnover of the company has grown at a CAGR of 133% over the last three years due to the larger number of projects awarded by the NHAI.
The emergence of Bajaj FinanceBSE 6.16 % as one of India's largest two-wheeler financiers in FY12 makes it a natural candidate for our list of fastest-growing companies. The company has expanded its reach by making funds available through more than 350 dealer locations and 1,170 sub-dealers across the country. It acquired over 45% of the customers through the direct cash collection model aimed primarily at the unbanked rural and semi-urban consumers.
It has also emerged as the largest consumer durables financier with a presence in 79 cities helping finance 10% of all consumer electronics goods.
Kwality DairyBSE 0.64 % has grown by leaps and bounds during the last few years as it launched brands such as 'Dairy Best', 'Desi Ghee' and 'Livlite' while forging tie-ups with large customers like the Indian Railways and some of India's biggest temples for marketing its products.
The company procures milk directly from about 3,50,000 farmers through a collection network of milk chilling centres built across 5,000-6,000 villages. The company is also expanding its global footprint through a subsidiary which has been formed in the UAE.
METHODOLOGY
For the fastest-growing companies in the ET 500universe we took into account the cumulative annualised growth rate or CAGR of revenue, PBDIT and net profit of all the 500 companies over the past three years.
The weighted average of the growth rates was considered for ranking the companies. Being the primary criteria, revenue was given a weightage of 50% while growth in PBDIT and net profit were given an equal weightage of 25% each. The list contains a few companies for which the three-year CAGR couldn't be calculated either because their numbers for FY09 were not available or they had posted losses then.
We also excluded a few companies. For instance, strategic investments in companies enabled L&T Finance Holdings to boost its revenue. Bajaj FinservBSE 1.84 % was a holding company for Bajaj FinanceBSE 6.14 % and other entities and was not considered.
For the fastest-growing companies in the ET 500universe we took into account the cumulative annualised growth rate or CAGR of revenue, PBDIT and net profit of all the 500 companies over the past three years.
The weighted average of the growth rates was considered for ranking the companies. Being the primary criteria, revenue was given a weightage of 50% while growth in PBDIT and net profit were given an equal weightage of 25% each. The list contains a few companies for which the three-year CAGR couldn't be calculated either because their numbers for FY09 were not available or they had posted losses then.
We also excluded a few companies. For instance, strategic investments in companies enabled L&T Finance Holdings to boost its revenue. Bajaj FinservBSE 1.84 % was a holding company for Bajaj FinanceBSE 6.14 % and other entities and was not considered.
Source : MEGHA SARAF,ET BUREAU
