Indian Oil Corp’s (IOC’s) fourth-quarter net profit tumbled 16 per cent to Rs 5,557 crore from Rs 6,623 crore in the corresponding period of the previous year. However, the company’s profit for the fiscal year 2009-10 recorded a 246 per cent jump to Rs 10,220 crore.
“The fourth-quarter figures are not comparable. As the government compensates IOC through oil bonds for losses incurred on selling fuel below cost price, the timing of this compensation is not fixed,” said B M Bansal, chairman and managing director, IOC.
Bansal attributed the substantial jump of 246 per cent in the company’s net profit for 2009-10 to “an inventory gain of Rs 2,514 crore, besides foreign exchange benefit of Rs 940 crore and a Rs 46-crore interest benefit accruing to the company.”