Q2 ADVANCE TAX - CLEAR SIGNS OF MORE GREEN SHOOTS
By Ruma Dubey
When the Govt released the figures of tax collections for first five months of current fiscal, not too much was expected from the Q2 Advance Tax. Q1 collection, as expected was too high and a similar kind of flat mop up was expected in Q2. But clearly, things seem to have improved much more than what we all have probably construed.
The deadline for payment of this second instalment of the advance tax was September 15, 2009 and advance tax figures for Q2 have just started tricking in and a few of them have left our mouths open. Broking firm, CLSA has paid Rs.210 crore as against Rs.20.4 crore paid in Q2FY09. Clearly at that time, markets were down in the pits and now, things are looking up and hence this major improvement. The word on the street is that most of the broking firms and financial companies are expected to post a similar, robust Q2 Advance Tax.
Another big surprise came from Mahindra & Mahindra, which paid Rs.112 crore v/s a meagre Rs.17.50 crore in Q2FY09. This is again a reflection of the sector – the auto sector has bounced back from where it was a year ago and this figure of M&M is a reflection of precisely this.
The other big ‘mouth opener’ was TCS. It paid a whopping Rs.220 crore v/s Rs.53 crore in Q2FY09. This is also good news as it is pointer at improvement in the sector.
It has been a fantastic year till now for the PSU oil companies and this is further reiterated by the tax paid by BPCL at Rs.312 crore, compared to a meagre Rs.40 crore in Q2FY09.
Ambuja Cement paid Rs.150 crore v/s Rs.70 crore (YoY). The cement sector has had a robust Q1 and this better figure of Ambuja is a reflection of this good time.
Another private sector company which has done well and is obviously doing well too is Lupin - it paid Rs.49.70 crore v/s Rs.11.40 crore paid in Q2FY09.
In the banking sector, the collection has been robust to say the least - SBI paid Rs.1832 crore v/s Rs.1068 crore (YoY), Bank of India paid Rs.470 crore as against Rs.230 crore, alomsot double over last Q2; Yes Bank paid Rs.58 crore v/s Rs.33 crore, BoB paid Rs.412 crore v/s Rs.255 crore (YoY) which is a huge jump and Central Bank paid Rs.79 crore v/s Rs.53 crore. HDFC paid Rs.320 crore v/s Rs.290 crore (YoY) which is again a reflection of the realty sector which is yet to get out of the woods.
Videocon paid Rs.30 crore v/s Rs.25 crore, Bajaj Electrical paid Rs.21 crore v/s Rs.15.50 crore, showing that the consumer durable sector is yet to recover fully but surely a marginally higher tax figure indicates that green shoots have started coming up.
Figures from the other bigwigs are yet to come in but the initial data has been encouraging. It is a clear indication that things are indeed improving, slowly but surely. And it is this news which the market has also been celebrating today.
These better Q2 Advance tax numbers also indicate that we can look forward to a much better Q2 report card from India Inc and that is some good news indeed!
By Ruma Dubey
When the Govt released the figures of tax collections for first five months of current fiscal, not too much was expected from the Q2 Advance Tax. Q1 collection, as expected was too high and a similar kind of flat mop up was expected in Q2. But clearly, things seem to have improved much more than what we all have probably construed.
The deadline for payment of this second instalment of the advance tax was September 15, 2009 and advance tax figures for Q2 have just started tricking in and a few of them have left our mouths open. Broking firm, CLSA has paid Rs.210 crore as against Rs.20.4 crore paid in Q2FY09. Clearly at that time, markets were down in the pits and now, things are looking up and hence this major improvement. The word on the street is that most of the broking firms and financial companies are expected to post a similar, robust Q2 Advance Tax.
Another big surprise came from Mahindra & Mahindra, which paid Rs.112 crore v/s a meagre Rs.17.50 crore in Q2FY09. This is again a reflection of the sector – the auto sector has bounced back from where it was a year ago and this figure of M&M is a reflection of precisely this.
The other big ‘mouth opener’ was TCS. It paid a whopping Rs.220 crore v/s Rs.53 crore in Q2FY09. This is also good news as it is pointer at improvement in the sector.
It has been a fantastic year till now for the PSU oil companies and this is further reiterated by the tax paid by BPCL at Rs.312 crore, compared to a meagre Rs.40 crore in Q2FY09.
Ambuja Cement paid Rs.150 crore v/s Rs.70 crore (YoY). The cement sector has had a robust Q1 and this better figure of Ambuja is a reflection of this good time.
Another private sector company which has done well and is obviously doing well too is Lupin - it paid Rs.49.70 crore v/s Rs.11.40 crore paid in Q2FY09.
In the banking sector, the collection has been robust to say the least - SBI paid Rs.1832 crore v/s Rs.1068 crore (YoY), Bank of India paid Rs.470 crore as against Rs.230 crore, alomsot double over last Q2; Yes Bank paid Rs.58 crore v/s Rs.33 crore, BoB paid Rs.412 crore v/s Rs.255 crore (YoY) which is a huge jump and Central Bank paid Rs.79 crore v/s Rs.53 crore. HDFC paid Rs.320 crore v/s Rs.290 crore (YoY) which is again a reflection of the realty sector which is yet to get out of the woods.
Videocon paid Rs.30 crore v/s Rs.25 crore, Bajaj Electrical paid Rs.21 crore v/s Rs.15.50 crore, showing that the consumer durable sector is yet to recover fully but surely a marginally higher tax figure indicates that green shoots have started coming up.
Figures from the other bigwigs are yet to come in but the initial data has been encouraging. It is a clear indication that things are indeed improving, slowly but surely. And it is this news which the market has also been celebrating today.
These better Q2 Advance tax numbers also indicate that we can look forward to a much better Q2 report card from India Inc and that is some good news indeed!
Source: www.premiuminvestments.in
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