The state-run oil explorer Oil India reported a drop of 7.26% in net profit at R940.29 crore for the third quarter, against R1,013.89 crore during the same period in the corresponding year.
The drop in profit is mainly due to higher subsidy payout to oil marketing companies.
During the last nine months, the company paid R6,042.45 crore as subsidy as compared to R4,478.12 crore during the same period last year, an increase by 34.93% The subsidy has affected the profit by R3,413.49 crore for the nine months.
However, the company reported a rise of 1.96% in turnover at R2,516.82 crore for the third quarter, against R2,468.52 crore during the corresponding period.
The losses are also due to higher crude cess imposed by the government. The government increased crude cess from R2,500 per metric tonne to R4,500 per metric tonne, resulted in additional burden of R569 crore as statutory levies.
The company also declared an interim dividend of 110% i.e. R11 per share for the financial year 2012-13.
