Top 5 Companies With Highest Cash Flow From Operating Activity

Investopedia defines cash flow from operating activity as an accounting item indicating the cash a company brings in from its ongoing, regular business activities. It can be calculated as follows: Cash Flow From Operating Activities = EBIT + Depreciation - Taxes. However, this does not include long-term capital or investment costs.

In this article, we take a look at the companies that have generated the highest cash flow from operating activities as of FY13 on a consolidated basis.

ONGC: Oil and Natural Gas Corporation is engaged in the exploration, development and production of oil and gas in India and internationally. The company's products include crude oil, natural gas, liquefied petroleum gas, naphtha, ethane/propane, kerosene oil, to name a few. It is also involved in power generation, liquefied natural gas supply and pipeline transportation activities and the provision of petrochemicals.

The company has topped the list, generating a cash flow of Rs 44700 crore from operating activities as of FY13. The company has given a positive return of 2.35% on a YTD basis and the market capitalisation stands at Rs 238848 crore as on date.

Reliance Industries: This company needs no introduction. Founded by Dhirubhai H. Ambani, Reliance Industries 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. Its flagship company, Reliance Industries, is a Fortune Global 500 company and is the largest private sector firm in India.

On a YTD basis, the stock price movement has remained flat, declining by a mere 0.08%. The company has been able to generate Rs 36918 crore of cash flow through its operating activities.

Bharti Airtel: Bharti Airtel is a leading global telecommunications company with operations in 20 countries across Asia and Africa. The company ranks among the top 4 mobile service providers globally in terms of subscribers. In India, its product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH and enterprise services including national & international long distance services to carriers. Bharti Airtel had over 269 million customers across its operations at the end of March 2013.

As of FY13, the company has been able to generate Rs 23483 crore of cash flow through operating activities on a consolidated basis. Its market capitalisation stands at Rs 129955 crore and the stock has generated a return of 1.37% on a YTD basis.

Tata Motors: Tata Motors is India's largest automobile company, with consolidated revenues of Rs 188818 crore in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles, with winning products in the compact, mid-size car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and the fourth largest bus manufacturer.

The company has generated a cash flow from operating activities worth Rs 22062 crore as of FY13. On a YTD basis, the stock has generated a return of 7.46%.

NTPC: NTPC is India's largest power company. It was established in the year 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 the power generation business. The current generating capacity of the company stands at 41,184 MW. NTPC plans to become a 128,000 MW company by 2032.

On a YTD basis, the stock price movement has remained weak as the stock prices declined by 4.73% during this period. The company has been able to generate Rs 16507.79 crore of cash flow through its operating activities.