The deadline for payment of the third instalment of the advance tax was today, December 15, 2009 and looks like, it has been a set of mixed bag. Advance tax payments are made by companies based on their internal estimate of the year’s profit. And looks like, many companies are expecting to celebrate this fiscal on healthier numbers.
As expected, the auto companies, currently speeding in third gear, have paid robust Q3 advance taxes. Tata Motors, which, last year this time was staring at a uphill road, and had paid no advance tax at all in Q3FY09, this third quarter, has paid Rs.100 crore. Bajaj Auto paid Rs.320 cr v/s Rs 105 cr (YoY) while M&M paid Rs 195 cr v/s Rs 4.5 cr (YoY).
The oil companies are clearly hurting a lot and the pain will be felt by the Treasury too! Indian Oil and BPCL have paid zero advance tax for Q3FY10.
The numbers from banks have been mixed, which is probably why the banking stocks faced some battering. ICICI Bank was the big disappointment; its outgo YoY dropped 52%. On the other hand, SBI did not disappoint and it remained the highest advance tax payer as always, at Rs.1800 crore v/s Rs.1700 crore (YoY). PNB, IDBI Bank and IndusInd Bank paid a very high Q3 advance tax. But this was more or less lost on the market which fixated only on ICICI Bank. Expected lower credit disbursals could be one big reason why some banks have kept the advance numbers for Q3 a bit subdued.
The collection from the cement sector has been good, indicating things have are on a sound ground. Grasim and Ultratech paid more but ACC showed a 12% drop on a YoY. Ambuja Cement kept the payment status quo at Rs.140 crore, same as what it had paid in Q3FY09.
India’s largest private sector company, Reliance Inds did not disappoint and it paid 89% more at Rs.850 crore v/s Rs.450 crore paid in Q3FY09.
The big FMCG company, HUL paid very well – it paid Rs.200 crore v/s Rs.155 crore on YoY. Till Q3, rural spending has held out and now with just one quarter to go, irrespective of how the rural spending pans out, HUL’s advance tax payment in current fiscal would surely be on a higher note.
The most robust number, in terms of YoY improvement has been from M&M, a 4233% rise and Century Textiles, showing a whopping 1533% rise. L&T posting a subdued tax outgo, though disappointing, is in line with the financial performance it has posted till now.
Irrespective of the subdued payments made by the banks, the overall picture does look good. The robust numbers clearly reiterates what the IIP numbers have indicated – the economy is doing well.
If we look at the total advance tax paid by companies for FY10, till Q3, the number far exceeds that paid in FY09. And that in itself is a huge positive. Probably that is what the markets need to concentrate on, rather than just the smaller picture of one quarter.
COMPANY Q3FY10 Q3FY09 %
Reliance Inds 850 450 89
ICICI Bank 301 625 (52)
Tata Motors 100 -
Tata Steel 650 260 150
Tata Chemicals 40 83 (52)
TCS 177 129 37
L&T 270 312 (13)
HDFC 320 280 14
Hindalco 100 40 150
Bank of India 102 370 (72)
Bank of Baroda 330 220 50
Dena Bank 65 60 8
As expected, the auto companies, currently speeding in third gear, have paid robust Q3 advance taxes. Tata Motors, which, last year this time was staring at a uphill road, and had paid no advance tax at all in Q3FY09, this third quarter, has paid Rs.100 crore. Bajaj Auto paid Rs.320 cr v/s Rs 105 cr (YoY) while M&M paid Rs 195 cr v/s Rs 4.5 cr (YoY).
The oil companies are clearly hurting a lot and the pain will be felt by the Treasury too! Indian Oil and BPCL have paid zero advance tax for Q3FY10.
The numbers from banks have been mixed, which is probably why the banking stocks faced some battering. ICICI Bank was the big disappointment; its outgo YoY dropped 52%. On the other hand, SBI did not disappoint and it remained the highest advance tax payer as always, at Rs.1800 crore v/s Rs.1700 crore (YoY). PNB, IDBI Bank and IndusInd Bank paid a very high Q3 advance tax. But this was more or less lost on the market which fixated only on ICICI Bank. Expected lower credit disbursals could be one big reason why some banks have kept the advance numbers for Q3 a bit subdued.
The collection from the cement sector has been good, indicating things have are on a sound ground. Grasim and Ultratech paid more but ACC showed a 12% drop on a YoY. Ambuja Cement kept the payment status quo at Rs.140 crore, same as what it had paid in Q3FY09.
India’s largest private sector company, Reliance Inds did not disappoint and it paid 89% more at Rs.850 crore v/s Rs.450 crore paid in Q3FY09.
The big FMCG company, HUL paid very well – it paid Rs.200 crore v/s Rs.155 crore on YoY. Till Q3, rural spending has held out and now with just one quarter to go, irrespective of how the rural spending pans out, HUL’s advance tax payment in current fiscal would surely be on a higher note.
The most robust number, in terms of YoY improvement has been from M&M, a 4233% rise and Century Textiles, showing a whopping 1533% rise. L&T posting a subdued tax outgo, though disappointing, is in line with the financial performance it has posted till now.
Irrespective of the subdued payments made by the banks, the overall picture does look good. The robust numbers clearly reiterates what the IIP numbers have indicated – the economy is doing well.
If we look at the total advance tax paid by companies for FY10, till Q3, the number far exceeds that paid in FY09. And that in itself is a huge positive. Probably that is what the markets need to concentrate on, rather than just the smaller picture of one quarter.
COMPANY Q3FY10 Q3FY09 %
Reliance Inds 850 450 89
ICICI Bank 301 625 (52)
Tata Motors 100 -
Tata Steel 650 260 150
Tata Chemicals 40 83 (52)
TCS 177 129 37
L&T 270 312 (13)
HDFC 320 280 14
Hindalco 100 40 150
Bank of India 102 370 (72)
Bank of Baroda 330 220 50
Dena Bank 65 60 8
SBI 1800 1700 6
Central Bank 138 163 (15)
IndusInd Bank 65 22 195
IDBI Bank 74 19 295
PNB 618 505 22
Asian Paints 120 45 167
Glaxosmithkline 85 67 27
Century Textiles 49 3 1533
Crompton Greaves 72 50 44
ACC 110 125 (12)
Grasim 150 75 100
Ultratech 90 65 38
Ambuja Cement 140 140 -
HUL 200 155 29
Bajaj Auto 320 105 205
M&M 195 4.5 4233
(Rs in crores)
Central Bank 138 163 (15)
IndusInd Bank 65 22 195
IDBI Bank 74 19 295
PNB 618 505 22
Asian Paints 120 45 167
Glaxosmithkline 85 67 27
Century Textiles 49 3 1533
Crompton Greaves 72 50 44
ACC 110 125 (12)
Grasim 150 75 100
Ultratech 90 65 38
Ambuja Cement 140 140 -
HUL 200 155 29
Bajaj Auto 320 105 205
M&M 195 4.5 4233
(Rs in crores)
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