Legal expenses could be a drag on a company's profitability. Apart from profitability, they could also consume significant productive time of the management. Also, they tarnish the reputation of business if they are incurred in a legal tussle. We have found top 12 companies with high legal expenses. They are listed in the adjacent table. Of the 12 companies, four are pharma companies. The fact that one-third of the companies listed alongside are pharma companies looks obvious as pharma companies have numerous legal requirements to comply with. Pharma companies like Ranbaxy are also embroiled in litigations. GVK Power also has high legal expenses, which are almost 50 per cent of the total expenditure. L&T has the highest legal expenditure of the companies tabled.
Top 12 companies with high legal expenses
|Company Name||Revenue||Total Expenditure||Professional and Legal Fees|
|Aditya Birla Nuvo||25893||21602||913|
|Larsen & Toubro||85128||71100||1588|
|Dr. Reddys Laboratories||13415||10165||372|
|GVK Power & Infra||2821||1815||897|
|All figures in ₹ crore|