How much tax a company is paying is a direct result of its income. The more profits a company makes, the higher the tax it pays (although there are various accounting tricks some companies use to cut down their tax liability). Nonetheless, it is a good indicator of the profitability of the company and the management’s intention to give back to society. In that vein, these are the top tax-paying companies in FY22 from the Nifty 50 list.
Reliance Industries Limited
Many would be knowing that Reliance Industries Ltd (NS:RELI) is the largest corporate tax-payer in the country for many years which is obvious as it is the largest listed company. It has a market capitalization of INR 17,06,826 crores and currently trades at a P/E ratio of 28.12 and a P/B ratio of 19.2.
Reliance clocked a PBT of INR 84,142 crores in FY22 on which the company paid a hefty tax of INR 23,437 crores, leaving it with a net profit of INR 60,705 crores. The company’s scale of operations has been consistently increasing year over year and has never shown an EBITDA dip since FY14 (at least).
State Bank of India Limited
Many people know that State Bank Of India (NS:SBI) is the largest PSU bank in the country with a market capitalization of INR 5,37,886 crores. However, many would be surprised to know that it became the second-largest taxpayer in the country in FY22, all thanks to its highest-ever revenue.
The bank clocked a PBT of INR 49,738.63 crores in FY22 on which it paid a tax of INR 14,364.75 crores which resulted in a net profit figure of INR 35,373.88 crores which was the highest-ever net income reported by the back since its inception. The net profit is even higher on a TTM basis, at INR 40,180.56 crores and the bank’s tax liability in TTM has been INR 17,434.48 crores.
Tata Consultancy Services Limited
The last name on the highest-tax-paid FY22 list is Tata Consultancy Services Ltd. (NS:TCS) which is the biggest company from the Tata Group and the second-biggest in India, having a market capitalization of INR 12,233,85 crores. The stock trades at a P/E ratio of 31.92, making it a bit overvalued as compared to the industry’s average of 26.68.
The tax paid by the company was almost INR 1,004 crores less than SBI, at INR 13,360 crores, on a PBT of INR 51,687 crores. At the net level, the company reported a profit of INR 38,327 crores in FY22 which was the highest since its listing.
