VR Logo

Taxation boost

These companies have shown greater profits or lesser losses due to significant tax write-backs

Taxation boost

Value Research Stock Advisor has just released a new stock recommendation. You can click here to learn more about this premium service, and get immediate access to the live recommendations, plus new ones as soon as they are issued.

"In this world nothing can be said to be certain, except death and taxes," said Benjamin Franklin, one of the Founding Fathers of the United States. He was right. Taxes have not just stayed since then but have also become more pervasive. For most of us, they mean less money in hand. But there are some companies for which they have meant more profits or a reduction in losses.

The table below lists companies which have received significant tax write-backs in the previous financial year. These write-backs are more than 25 per cent of their profits before taxes. Because of these tax credits, their profits have got a boost or their losses have significantly reduced. One should take into account the impact of the write-backs to form a proper picture of their performance.

Existential crisis

Company name Profit before tax (Rs cr) Tax write-back (Rs cr) Profit after tax (Rs cr) Tax to PBT (%)
Shipping Corporation 29 224 254 760.8
Piramal Enterprises 1964 2876 4840 146.5
Aditya Birla Fashion 49 69 118 140.5
State Bank of India -12245 8058 -4187 65.8
Bank of Maharashtra -3232 2120 -1112 65.6
DCW -49 29 -20 58.8
HDIL 60 35 96 58.3
Claris Lifesciences -34 20 -14 58.2
United Bank of India -2947 1492 -1454 50.6
IFCI -1720 749 -972 43.5
Alok Industries -5391 2321 -3070 43
Udaipur Cement Works -73 30 -43 40.7
Dena Bank -3179 1256 -1923 39.5
Corporation Bank -6675 2625 -4050 39.3
Lakshmi Vilas Bank -951 366 -585 38.5
Andhra Bank -5441 2047 -3394 37.6
Punjab National Bank -19846 7262 -12584 36.6
Canara Bank -6408 2321 -4087 36.2
Central Bank Of India -7876 2780 -5096 35.3
IDBI Bank -12495 4338 -8157 34.7
Sanghvi Movers -88 30 -57 34.6
Idea Cellular -6822 2331 -4491 34.2
JK Lakshmi Cement 33 11 43 33.4
Inox Wind -280 93 -188 33.1
Steel Authority of India -811 245 -566 30.2
Bank of India -8660 2587 -6073 29.9
Allahabad Bank -6452 1878 -4574 29.1
Rajapalayam Mills 14 4 18 27.8
Gayatri Projects 20 6 26 27.6
Syndicate Bank -4277 1165 -3112 27.2
Indian Overseas Bank -8632 2332 -6299 27
Data as on August 13, 2018. Market cap more than Rs 500 crore. Tax to PBT over 25%