State-owned Indian Oil Corp (IOC) on Friday reported a net profit of Rs 9,611.4 crore in the quarter ended September, against its worst-ever net loss of Rs 7,485.6 crore in the corresponding period of the last year.
The giant turned around despite anticipated losses as subsidy payments due from the government came through.
"Without the subsidy support, IOC would have posted a loss of Rs 28,997 crore in the first six months of the fiscal and Rs 6,480 crore during the second quarter of the fiscal," said PK Goyal, director, finance, IOC.
IOC said the government approved a subsidy payment of Rs 16,184.9 crore in the quarter towards part of the under-recovery on the sales of high-speed diesel, kerosene and LPG, compared with Rs 11,853.2 crore subsidy payment in the same quarter of 2011. The total income rose 30.3% year-on-year to Rs 106,848.3 crore in the second quarter.
IOC said it accounted for a budgetary support of R16,094 crore towards under-recovery on sales in the second quarter.