After receiving compensation from the government on selling fuel below the cost price, state-run Indian Oil Corp (IOC) on Thursday announced an over two-fold jump in its net profit to Rs 1,634.76 crore for the third quarter ended December 31.
Net profit jumped 134.7% year-on-year in the Oct-Dec quarter from Rs 696.6 crore in the same period a year ago, IOC chairman S V Narasimhan said.
The company's turnover rose 16.7% to Rs 82,179 crore in Q3 from Rs 70,431 crore during the same period last year.
IOC earned $6.33 on turning every barrel of crude oil into petroleum products in the quarter as against a gross refining margin of $3.64 per barrel a year ago.
"The higher profit is due to compensation we received from the government," he said. Out of the total cash subsidy, IOC got Rs 4,442.5 crore, he said.
Meanwhile, IOC said that its Rs 20,000-crore public offer is on hold due to unfavourable market conditions and rising global crude oil prices.
"I don't think it is feasible at this stage to think of a follow-on public offer," he said.
The government was to divest a 10% stake in the company.