PROFIT 100

INDIA'S MOST PROFITABLE COMPANIES

- Karthik Anand Vijay

What is the definition of a business? A business is the pursuit of selling a product or a service at a price greater than its cost and hence generating a profit. Thus, profits lie at the heart of any business. Of course, these days, we do find so-called 'new-gen' companies that show scant regard for profits and consider growth to be everything. But simple logic will tell you what would happen to a business if it remains unprofitable for long. How long will external funding keep such a business alive? What do investors want in the end? History is full of examples of companies which died due to a lack of profits.

Profit 100 is our annual exercise in which we bring to you the most profitable companies in India. Over the next few pages, you will find the 100 companies that cleared our stringent criteria. These companies have historically done well on three metrics: profit growth, return on equity, and consistency of profit growth. Of course, there are other hygiene filters as well. You can read all about them over the next pages. Finally, we present to you some insights on the Profit 100 list. These insights will help you absorb the list in bite-sized data capsules.

HOW TO USE THE PROFIT 100 LIST

While we have taken utmost care in ensuring the quality of Profit 100 and weeding out undesirable names, the companies appearing in this list are not our recommendations. As an investor, you can use this list as a starting point for your individual research. If you do like any of the companies mentioned in the list, do your due diligence before investing in it. So, consider this list as a source of ideas. Of course, for casual readers, it can act as a repository of interesting information that they might like to discuss with their friends and colleagues.

Arriving at the Profit 100