IOC posts 14.5% profit rise on higher subsidy compensation
Indian Oil Corp (IOC), the nation’s largest oil firm, on Thursday announced a 14.5% year-on-year rise in its fourth quarter ending March 2013 net profit to Rs 14,512.81 crore as it received fuel subsidy from the government for more than one quarter during the period.business Updated: May 31, 2013 01:56 IST
Indian Oil Corp (IOC), the nation’s largest oil firm, on Thursday announced a 14.5% year-on-year rise in its fourth quarter ending March 2013 net profit to Rs 14,512.81 crore as it received fuel subsidy from the government for more than one quarter during the period.
It posted net profit of Rs 12,670.43 crore during the consecutive period last year, IOC chairman RS Butola told reporters on Thursday.
IOC sells diesel, cooking gas (LPG) and kerosene at government-controlled rates, which are way below the cost. Part of the losses incurred in the process are reimbursed by way of cash subsidy from the government.
The government did not pay any cash subsidy in the third quarter and released lumpsum during the quarter under review.
Of the Rs 53,278.07 crore total cash subsidy for selling diesel and cooking fuel below cost in 2012-13 fiscal, IOC got Rs 23,709.54 crore in fourth quarter alone.
Of the Rs 85,793 crore in revenue it lost on selling diesel and cooking fuel below cost during the full fiscal, it got Rs 53,278.07 crore from the government and another Rs 31,966.84 crore from upstream firms like ONGC, he said.
“After accounting for the cash subsidy and upstream assistance, we absorbed Rs 548.49 crore under-recoveries (revenue loss),” he said, adding that the company lost another Rs 485 crore on not revising rates of deregulated petrol.
For the full FY’13 fiscal, the company reported a net profit of Rs 5,005.17 crore, up 26.5% from Rs 3,954.62 crore in the previous 2011-12 financial year. Turnover rose 12% to Rs 447,096.41 crore from Rs 398,476.63 crore in last year.
IOC plans to invest Rs 11,277 crore in current fiscal as compared to Rs 9,378 crore in 2012-13, he said, adding the company has a planned capex of Rs 56,200 crore in the XIIth Five Year Plan (2012-17) (Rs 48,655 crore in XIth Plan).
Butola said the company is currently losing Rs 3.73 a litre on diesel, Rs 27.93 a litre on kerosene and Rs 378.38 per 14.2-kg LPG cylinder.
Shares of IOC closed 1.03% higher at Rs 294.80 on BSE.