Growing energy demand helped Indian companies rise up in a global top 250 energy company rankings list compiled by Platts, but the performance may prove hard to sustain. The global energy information firm?s 2012 rankings reflect performance in four key areas ? asset worth, revenues, profits and return on invested capital (ROIC) ? in the financial year 2011.
Half of the country?s 12 representatives on the top 250 list also figure among 50 fastest growing energy companies in the world, with Cairn India topping the list, said Platts.
NTPC and GAIL (India) were top in their respective regional segments in the independent power producer and gas utility categories.
Coal India, dominant in the domestic market with few rivals, was No. 2 in the return on invested capital (ROIC) rankings, with an ROIC of 35.3% ? a surprising entry as it is struggling to keep pace with output targets.
A new entrant to the rankings in 2010 when the company listed with the BSE, Coal India has posted strong ROIC in the last two years despite the challenges it faces.
The Platts Top 250 Global Energy Company rankings are based on data compiled and maintained by S&P Capital IQ, which, like Platts, is a part of The McGraw-Hill Companies. To be ranked, companies must have assets greater than $4 billion and must be publicly listed.
PowerGrid Corp of India improved its overall ranking the most among Indian companies, rising from 232 in 2010 to 172 in 2011, a gain of 60 places. Other significant moves include a rise of 21 places for power producer NHPC to 195, while Reliance Infrastructure gained 17 places to stand at 215.
?Although these represent the bright spots for financial performance in 2011, 2012 may prove more challenging for India?s power generators,? Vandana Hari, Platts? Asia editorial director, said in a media statement.
India faces massive fuel shortages, growing dependency on expensive imports and regulated domestic retail electricity prices.
Meanwhile, China continues to grow in the energy business with 23 companies on the 2012 roster, giving the People?s Republic more firms in the Top 250 than any other country except the US. However, in an East-West energy showdown, Western majors still reign.
