State-owned Oil India Ltd (OIL) has reported a 30.5% rise in net profit in the fourth quarter ended March 31, despite a sharp rise in its fuel subsidy burden.
OIL, India's second biggest state explorer, reported a net profit of Rs 562.6 crore in the January-March quarter, compared to Rs 431 crore in the year-ago period, the company said.
Revenues increased to Rs 2,018.9 crore from Rs 1,832.1 crore in the fourth quarter of the 2009-10 fiscal.
For the full year 2010-11, OIL's net profit was Rs 2,887.7 crore, a 10% rise over the previous year.
The net profit was up despite the company having to pay Rs 3,293.1 crore to subsidise diesel, domestic LPG and kerosene in 2010-11, as against Rs 1,548.8 crore it paid in the previous year.
Upstream oil firms like OIL, Oil and Natural Gas Corp (ONGC) and GAIL India give discounts on crude oil they sell to refiners to make up for part of the losses they incur on selling diesel, domestic LPG and kerosene at government-controlled rates.
OIL said its profit would have been higher by Rs 901 crore in the fourth quarter and Rs 1,848 crore in the full year but for the subsidy impact.
The share of subsidies for exploration companies was increased to 38.8% of the total revenue retailers lost on fuel sales in the 2010-11 fiscal from 33.33% previously.