Advance tax numbers suggest pressure on cement cos

Advance tax numbers suggest pressure on cement cos
17 September 2009

UltraTech Cement, an Aditya Birla Group company, has skipped advance tax payment in the second quarter of this fiscal, fuelling speculation that the earnings of cement companies could come under pressure due to possible oversupply.

The company had paid Rs 190 crore in the same period last year. However, ACC paid higher advance tax of Rs 150 crore (Rs 42 crore).

Hindalco Industries of the Aditya Birla Group paid Rs 70 crore as advance tax, down from Rs 190 crore paid last year. Grasim Industries, on the other hand, coughed up more than thrice as much at Rs 250 crore (Rs 75 crore).

Indian Oil emerged the second highest tax payer after SBI by paying Rs 1,100 crore, though the oil major did not pay advance tax in the quarter last year when the crude price crisis was at its peak.

“It is a decision taken by individual companies which quarter they have to pay up the maximum tax liability. It also depends on the liquidity and capital expenditure, besides the future outlook,” analysts say.

Business Line (The Hindu)
Published under Cement News