Millennium Post

IndianOil logs 14.5% rise in 4th quarter net

Indian Oil Corp, the nation's largest oil firm, on Thursday reported a 14.5 per cent rise in January-March net profit as it received fuel subsidy for more than one quarter during the period.

Net profit in the March quarter rose to Rs 14,512.81 crore from Rs 12,670.43 crore in the same period last year, IOC Chairman R S Butola told reporters here.

IOC sells diesel, cooking gas (LPG) and kerosene at government-controlled rates which are way below the cost. Part of the losses incurred in the process are reimbursed by way of cash subsidy from the government.

The government did not pay any cash subsidy in the third quarter and released lumpsum in the quarter under review.

Of the Rs 53,278.07 crore cash subsidy paid by government for selling diesel and cooking fuel below cost in 2012-13 fiscal, IOC got Rs 23,709.54 crore in fourth quarter alone. It did not get any compensation in third quarter.

Of the Rs 85,793 crore in revenue it lost on selling diesel and cooking fuel below cost during the full fiscal, it got Rs 53,278.07 crore from the government and another Rs 31,966.84 crore from upstream firms like ONGC, he said.

‘After accounting for the cash subsidy and upstream assistance, we absorbed Rs 548.49 crore under-recoveries (revenue loss),’ he said, adding that the company lost another Rs 485 crore on not revising rates of deregulated petrol.

Butola said IOC earned USD 2.39 on turning every barrel of crude oil into fuel in Q4 compared to USD 2.26 per barrel gross refining margin in the same period the previous year. The company board recommended a dividend of Rs 6.20 per equity share. For the full FY'13 fiscal, the company reported a net profit of Rs 5,005.17 crore, up 26.5 per cent from Rs 3,954.62 crore in the previous 2011-12 financial year.

Turnover rose 12 per cent to Rs 447,096.41 crore from Rs 398,476.63 crore.

IOC plans to invest Rs 11,277 crore in current fiscal as compared to Rs 9,378 crore in 2012-13, he said, adding the company has a planned capex of Rs 56,200 crore in the 12th Five Year Plan (2012-17) .

Butola said the company is currently losing Rs 3.73 a litre on diesel, Rs 27.93 a litre on kerosene and Rs 378.38 per 14.2-kg LPG cylinder.
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