IOC net income falls
Indian Oil Corp (IOC), the nations biggest refiner, posted a 60% fall in fourth-quarter profit because of a compensation received from the government in the year-earlier quarter for selling fuels below cost.
Net income fell to Rs 1,610 crore for the three months ended March 31, compared with Rs 4,030 crore a year ago, the New Delhi-based refiner said in an announcement to the Bombay Stock Exchange on Monday. The company got bonds worth Rs 6,571 crore in the same quarter last year.
Earnings at Indian Oil and its state-run counterparts dont reflect operations and are determined by the amount and timing of compensation given by the government, leading to swings between profit and loss. Indian Oils full-year profit surged 52% to Rs 7,500 crore.
There is a lot of uncertainty over these companies in relation to the governments pricing policy, said Dipak Acharya, who manages about Rs 1,900 crore at BOB Asset Management in Mumbai. Investors are holding on to these stocks on the hope that someday these policies will go and there will be free pricing.
Indian Oils share rose as much as Rs 19.7, or 4.15%, to Rs 494.4 on the Bombay Stock Exchange.