Indian Oil Corporation (IOC) has reported a net profit of Rs 12,670.43 crore, an over three-fold jump, for the quarter ended March 31, riding on the
government's compensation for the nation's biggest refiner for selling diesel and cooking fuels below cost.
The state-owned oil major had reported a net of Rs 3,905.16 crore in the same quarter a year earlier.
IOC said it got Rs 45,484 crore subsidy from the government to make up for most of the revenue it lost on selling diesel, domestic cooking gas (LPG) and kerosene below cost during 2011-12.
The company, as also Bharat Petroleum and Hindustan Petroleum,
sell these fuels at government controlled rates to keep inflation under check.
After the compensation, the company had to absorb just Rs 22.37 crore loss on the four fuel.
It earned $4.25 on turning every barrel of crude oil into fuel in the fourth quarter ended March 31, 2012, as opposed to $7.56 a barrel gross refining margin a year ago.
In the full fiscal, GRMs stood at $3.63 per barrel compared to $5.72 a barrel in 2010-11.
The company, which declared dividend of Rs 5 per share, reported a forex loss of Rs 2,769 crore in FY12. Its exceptional loss was of Rs 1,540 crore on account of entry tax.
Sales rose 30 per cent to Rs 1,28,433.96 crore from Rs 98,482.45 crore.
The net profit in 2011-12 was at Rs 3,954.62, down from Rs 7,445.48 crore in the previous year.
Shares of Indian Oil closed the day up 0.06 per cent at Rs 265.50 on the Bombay Stock Exchange, even as benchmark Sensex ended the day's trade 199 points higher.
With PTI inputs
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