Cash is king: Top-10 companies that have the most money on books

SUMMARY

The phrase “Cash is king” comes handy for top companies as it provides flexibility to quickly capitalise on profitable opportunities. Moreover, cash equivalents are liquid assets that can be converted quickly into cash quickly. Check the list of 10 companies that have the most cash on their books. (Note*: Companies from financial sector are not included in the list considering the nature of their business).

By Yoosef K   July 6, 2024, 9:05:14 AM IST (Published)

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Having surplus cash reserves on the books is always positive for every company as it provides a cushion to bridge any mismatch between cash generation and a sudden need for cash. The phrase “Cash is king” comes handy as it provides flexibility to quickly capitalise on profitable opportunities. Cash and cash equivalents are the most liquid assets that are either cash or can be converted into cash quickly. Data has been sourced from the companies’ annual report and Bloomberg as of March 31, 2024. Take a look at the 10 top cash rich companies. (Image: Reuters)

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Company: Reliance Industries (RIL) | Cash and cash equivalents: ₹2.1 lakh crore | Reliance Industries tops the list of companies that hold highest cash reserves on their book. At the end of March 2024, the cash and cash equivalents of Reliance Industries stood at ₹2.08 lakh crore. That is an increase of ₹15,970 crore from the September Quarter. The country’s largest company reported its highest revenue of over ₹9 lakh crore in FY24. (Image: Shutterstock)

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Company: Tata Motors | Cash and cash equivalents: ₹60,060 crore | Home grown automaker Tata Motors ranks second in cash reserves. The company, which reported its highest ever revenues, profits, and free cash flows in FY24 also boast of over ₹60,000 crore cash on its book. The India business of Tata Motors turned debt free during the year and it expects to become net (automotive) debt free on consolidated basis in FY25. Jaguar Land Rover, the luxury unit of Tata Motors, has a cash balance of approximately 45,000 crore as of FY24. (Image: Reuters)

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Company: Larsen & Toubro | Cash and cash equivalents: ₹50,316 crore | Engineering behemoth Larsen & Toubro had a cash and Cash equivalents of ₹50,316 crore at the end of FY24. The net profit of L&T increased by 25% to ₹13,059 crore in FY24 on the back of a 21% growth in revenue, which stood at ₹2.2 lakh crore. The company clocked strong order books during the year, which surpassed the ₹3 lakh crore mark and its order book at the end of March 2024 stood at ₹4.8 lakh crore. (Image: Reuters)

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Company: Tata Consultancy Services | Cash and cash equivalents: ₹44296 crore | The largest IT company also holds highest cash reserves among software companies in India. At ₹44296 crore, TCS occupies fourth rank and is the second company from the Tata Group after Tata Motors. This is despite the fact the company has paid out as much as ₹46,223 crore in the form of dividends and buyback during the year. TCS enjoys strong cash conversion ratio as its operating cash flow stands at over 100% of its net profit in FY24. (Image: Reuters)

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Company: ONGC | Cash and cash equivalents: ₹42070 crore | State-owned Oil and Natural Gas Corporation (ONGC) boast a cash reserve of ₹42070 at the end of March 2024. While the refinery major placed fifth among companies listed in India, it holds numero uno position among public sector undertakings (PSUs). During the year, the net profit of ONGC surged nearly 40% to ₹49221 crore. Further, reforms in crude and gas pricing have improved ONGC’s profitability above its long-term averages. (Image: Reuters)

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Company: Wipro | Cash and cash equivalents: ₹40812 crore | The fourth largest Indian IT service firm is also the sixth biggest company in terms of cash reserves. The Bangalore-based Wipro had a Cash & Cash Equivalents of ₹40812 crore as of March end. At $4.6 billion, Wipro registered a 17.4% increase in its large deal in FY24. The improved deal booking also pushed company’s operating cash flows, which stood at 158.6% of its net profit. (Image: Reuters)

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Company: Infosys | Cash and cash equivalents: ₹39005 crore | The cash and cash equivalents of Infosys witnessed a sequential growth of ₹6529, which stood at ₹39005 crore at the end of March 2024. The net profit of Infosys grew by 9% to ₹26233 crore in FY24. Its revenue for the year increased by 4.7% to ₹1.54 lakh crore. (Image: Reuters)

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Company: InterGlobe Aviation | Cash and cash equivalents: ₹3,4738 crore | IndiGo – world’s third largest airline by market capitalisation had a total cash balance of ₹34738 crore as of March 2024. The total cash balance comprises ₹20823 crore of free cash and ₹13915 crore of restricted cash. The company returned to profit in FY24 on the back of 27% increase in net revenue. During the year, Indigo reported a net profit of ₹8173 crore, compared to net loss of ₹306 crore. However, the airlines yield decreased by 1% to ₹5.08 in FY24 and load factor improved by 3.8 percentage points to 85.9%. (Image: Reuters)

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Company: Coal India | Cash and cash equivalents: ₹33,486 crore | Coal India, the second biggest dividend paying PSU, occupies 9th rank in cash reserves. At the end of FY24, the coal producer had a Cash & Cash Equivalents of ₹33486 crore. The company had distributed ₹15,715 crore as dividend during the year. During the year, the Net profit of Coal India increased by 33% to ₹37,402 crore. Moreover, analysts expect the company to post 5% volume growth per year on improving power demand in FY24 to FY26. (Image: Reuters)

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Company: HCL Technologies | Cash and cash equivalents: ₹27975 crore | The third largest IT company occupies 10th rank among listed companies in India. The constant currency revenue of HCLTech increased by 5% in FY24, led by growth in financial services. The financial services segment of the IT major clocked a growth of 12.1% during the year.The bottom-line of HCLTech grew by 6% to ₹15690 crore in FY24. (Note*: Companies from financial sector are not included in the list considering the nature of their business). (Image: Reuters)