Top 5 Companies With The Highest Tax Outgo

While analysing the markets, considerable importance is given to the advance tax figures. It gives an indication of the expected earnings the company is likely to post. This month (April 2013) and the next couple of months will see India Inc. declaring their annual results. We are, therefore, looking at the top 5 companies that have paid the highest amount of taxes to the exchequer on a consolidated basis in FY12.

Oil and Natural Gas Corporation

Oil and Natural Gas Corporation engages in the exploration, development, production, and refining of oil & gas in India and internationally. The company’s products include crude oil, natural gas, liquefied petroleum gas, naphtha, ethane/propane, kerosene oil, low sulphur heavy stock, high speed diesel, motor spirit, aviation turbine fuel, liquid diesel oil, and mineral turpentine oil. It is also involved in power generation, liquefied natural gas supply, and pipeline transportation activities; and the provision of petrochemicals. Oil and Natural Gas Corporation was incorporated in 1993 and is headquartered in Dehradun.

The company is the highest tax payer in India Inc. as it paid Rs 14,971.32 crore as tax in FY12 on a consolidated basis. With a market capitalisation of Rs 2,81,348 crore the scrip has yielded a return of 22.84% on a YTD basis in CY13.

Coal India

Coal India, together with its subsidiaries, engages in the production of coal in India. It offers coking coal primarily for use in steel making and metallurgical industries, and for hard coke manufacturing and semi coking coal for use as blend-able coal in steel making, merchant coke manufacturing, and other metallurgical industries. In addition, it offers washed and beneficiated coal for use in the manufacturing of hard coke for steel making and power generation; and beneficiated non-coking coal for use in cement, sponge iron, and other industrial plants. The company, formerly known as Coal Mines Authority, was founded in 1973 and is headquartered in Kolkata.

The company has paid a tax of Rs 6,496.89 crore for FY12 on a consolidated basis to secure the second spot in our list. In CY13, the company has yielded a negative return of 17.63% and its market capitalisation stands at Rs 1,87,311 crore.

Reliance Industries

The Reliance Group, founded by Dhirubhai H Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. The group's annual revenues are in excess of USD 66 billion. The flagship company, Reliance Industries, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late 70s, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil & gas exploration and production - to be fully integrated along the materials and energy value chain.

In FY12, the company has paid a tax of Rs 5,691 crore on a consolidated basis and in the current calendar year, the scrip has yielded a negative return of 7.92%. The company’s market capitalisation stands at Rs 2,30,604 crore.

Tata Steel

Established in 1907, Tata Steel is among the top 10 global steel companies with an annual crude steel capacity of over 28 million tonnes per annum (MTPA). It is now one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries. Tata Steel’s larger production facilities include those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia. Operating companies within the group include Tata Steel (India), Tata Steel Europe (formerly Corus), NatSteel, and Tata Steel Thailand (formerly Millennium Steel).

With a market capitalisation of Rs 28,870 crore the scrip has yielded a negative return of 32.19% in CY13. The tax outgo for FY12 stands at Rs 3,636.46 crore.

NTPC

NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It is emerging as an ‘Integrated Power Major’, with a significant presence in the entire value chain of power generation business.

NTPC is ranked 337th in the 2012 ‘Forbes Global 2000’ ranking of the World’s biggest companies. With a current generating capacity of 40,674 MW, the company plans to become a 1,28,000 MW company by 2032.

The company paid an amount of Rs 3,461.66 crore as tax in FY12 on a consolidated basis. With a market capitalisation of Rs 1,18,940 crore the scrip has yielded a negative return of 7.15% on a YTD basis in CY13.