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Mirroring the trend of corporates in Mumbai, the advance tax paid by the top 64 Delhi-based companies was down eight per cent to Rs 5,965 crore (Rs 6,472 crore) in the December quarter, according to sources in the tax department.
However, payment by these companies to the exchequer was up two per cent, at Rs 16,349 crore (Rs 16,054 crore) in the first three quarters of this fiscal. These companies paid Rs 22,033 crore as advance tax for last fiscal. The top Mumbai companies paid Rs 16,691 crore (Rs 16,750 crore) for the December quarter.
Pressure on margins
SAIL, the country's steel manufacturer, more than halved its tax payout to Rs 253 crore (Rs 707 crore) as a result of pressure on its profit margins from falling demand and higher raw material prices. Steel-makers are unable to pass on the incremental cost to end-users. The company's net profit was down 55 per cent at Rs 495 crore (Rs 1,090 crore) in the September quarter.
Other companies that deal with metals, such as Bharat Aluminium, MMTC, JS Stainless Steel and Aryan Coals Benefaction, have also paid lower tax, indicating the stress in the metal sector.
The advance tax paid by Maruti Suzuki, hit by the workers' unrest at its Manesar plant, was just Rs 10 crore, against Rs 310 crore paid last year. The depreciating rupee, growing competition and big discounts offered in the recent past have weighed heavily on Maruti's margins and profitability.
Squeeze on profits
Telecom major Bharti Airtel's payment was down at Rs 142 crore (Rs 279 crore) following the recent squeeze in its profits. The company's net profit was down 38 per cent, at Rs 1,307 crore, even as net sales jumped nine per cent to Rs 10,164 crore in the second quarter this fiscal.
The lower payment by these top three companies has led to a drop in advance tax collection this quarter, said the source.
Engineering and power equipment maker BHEL shelled out higher payment of Rs 882 crore (Rs 808 crore) even as it faces increased competition from China. NTPC paid 40 per cent more tax of Rs 836 crore (Rs 596 crore), while GAIL's payment was up at Rs 445 crore (Rs 370 crore). Hero Honda, which recently parted ways with its Japanese partner Honda, paid a higher tax of Rs 186 crore (Rs 121 crore). Other corporates that paid more tax include Nestle India, Rural Electrification Corporation, Punjab National Bank and Petronet LNG.
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