The much-awaited annual ranking of India’s Best CEOs is here. Like last year, BT teamed up with consulting firm PwC to devise a methodology for the study, which takes into account both quantitative performances as well as qualitative aspects.
We started with the quantitative exercise to shortlist the top three performers in each segment. But before that, a series of checks and filters were applied on our universe of the BT500 ranking of India’s most valuable companies. Only companies with revenues of more than Rs 1,000 crore were considered, with the data being sourced from corporate database ACE Equity.
The study period was FY20, FY21 and FY22, and firms with accounting periods of 12 months were considered. Those whose latest audited financial year results were not available were dropped, as were those that posted a net loss in any of these fiscals. While firms that debuted on the bourses during the study period were not considered, one firm was eliminated due to ethical/other reasons. A total of 319 companies made the cut, of which CEOs (or executive heads) who had been on the job for the full study period were considered. In the case of PSUs, the period was a minimum of one fiscal.
To arrive at the rankings, growth in total income, profit before interest and tax (PBIT) and total shareholder returns (TSR) were considered, with the results being considered on a consolidated priority basis. Firms were assigned a score on the average of year-on-year absolute change and three-year CAGR in total income and PBIT. For BFSI firms, profit before tax was considered in place of PBIT, along with the geometric CAGR of non-performing assets (NPA) and TSR, which was calculated using net price change plus dividends. Thereafter, scores were given to all these parameters, which were then added to get the final result.
Companies were then split into four categories—Super Large (total income of Rs 1 lakh crore-plus); Large (Rs 50,000-1 lakh crore); Mid-sized (Rs 10,000-50,000 crore); Emerging (Rs 1,000-10,000 crore)—and 15 sectors. The jury did not pick any firm from the large category. PwC India reviewed and validated the process.
As a final step, the names of Top 3 CEOs in each group—overall and sector-wise—were placed before the jury, comprising Ajay Piramal, Chairman, Piramal Group (Jury Chair); Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas; Milind Sarwate, Founder & CEO, Increate Value Advisors; Mehul Pandya, MD & CEO, CARE Ratings; Mathew Cyriac, Executive Chairman, Florintree Advisors; and J.N. Gupta, Co-founder & MD, Stakeholders Empowerment Services.
This year, we introduced a new award, Business Icon of the Year. Groups with a combined total income of over Rs 50,000 crore were considered. Nominations were based on market cap, total income and profit for the past three years of group firms in the BT500.
@iamrahuloberoi
