Indian Oil Corp, the nation's largest oil firm, today 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, the company said in a filing to the stock exchanges.
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.
IOC said it will receive Rs 53,278.07 crore as cash subsidy from the government for the full 2012-13 fiscal, up from Rs 45,485.84 crore in the previous financial year.
Besides, the company got Rs 31,966.84 crore from upstream firms like Oil and Natural Gas Corp (ONGC) as support for selling diesel and cooking fuel at below market price.
Despite the government subsidy and upstream support, the company booked Rs 548.49 crore loss on the fuel sale in the fiscal.
IOC said it earned USD 2.39 on turning every barrels of crude oil into fuel in Q4 as opposed 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 FY13 fiscal, the company reported a netprofit of Rs 5,005.17 crore, up from Rs 3,954.62 crore in the previous 2011-12 financial year.
Turnover rose to Rs 447,096.41 crore from Rs 398,476.63 crore.