IndianOil logs 14.5% increase in March quarter net at R14,513 cr

Written by Press Trust of India | New Delhi | Updated: May 31 2013, 06:48am hrs
IndianOil, the nations largest oil firm, on Thursday reported a 14.5% 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 R14,512.81 crore from R12,670.43 crore in the same period last year, IOC chairman RS Butola said.

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 R53,278.07 crore cash subsidy paid by government for selling diesel and cooking fuel below cost in 2012-13 fiscal, IOC got R23,709.54 crore in fourth quarter alone.

It did not get any compensation in third quarter.

Of the R85,793 crore in revenue it lost on selling diesel and cooking fuel below cost during the full fiscal, it got R53,278.07 crore from the government and another R31,966.84 crore from upstream firms like ONGC, he said. After accounting for the cash subsidy and upstream assistance, we absorbed R548.49 crore under-recoveries (revenue loss), he said, adding that the company lost another R485 crore on not revising rates of deregulated petrol.

For the full FY13 fiscal, the company reported a net profit of R5,005.17 crore, up 26.5% from R3,954.62 crore in the previous 2011-12 fiscal. Turnover rose 12% to R447,096.41 crore from R398,476.63 crore.

The company board recommended a dividend of R6.20 per equity share.