Indian Oil Corporation Ltd., or IOC, India's largest commercial enterprise, reported a higher net profit for the third-quarter, mainly due to release of government subsidy.
The Mumbai-based company's third-quarter net profit rose by 34 percent to Rs.3,331.96 crore or Rs.13.72 per share from the Rs.2,488.44 crore or Rs.10.25 per share in the third-quarter of last year, mainly due to release of government assistance to the tune of Rs.13,475 crore partly compensating under recoveries on sale of three sensitive products, i.e. Diesel, PDS Kerosene and LPG (Domestic).
Results for the preceding year quarter included a one-time charge of Rs.6,168.19 crore towards provision for entry tax.
Its quarterly net sales, including subsidy from government, rose by eight percent to Rs.115,276.65 crore from the Rs.107,104.24 crore in the year-ago quarter, while other operating income totaled to Rs.240.86 crore, compared with Rs.408.02 crore for the same period a year ago.
During the quarter, sales from 'Petroleum Products' segment amounted to Rs.112,391.32 crore, compared with Rs.105,575.06 crore, reflecting a six percent growth, while that of "Petrochemicals' was up by 52 percent at Rs.4,117.17 crore, compared with Rs.2,711.70 crore in Q3FY12. Income from 'Other Business Activities' segment totaled Rs.2,962.82 crore, compared with Rs.2,144.83 crore a year-ago, an increase of 38 percent.
During the quarter, throughput of refineries was 14.208 MMT, marginally up from 14.166 MT in the year-ago quarter, while pipeline throughput rose to 19.471 MMT from 18.360 MT in the previous year quarter.
During the quarter, IOC sold 19.706 million tons of products, including exports, compared with 19.287 million tons in Q3FY12.
Apr-Dec 2012 period
For the nine months, IOC posted a net loss of Rs.9,507.64 crore, compared with a net loss of Rs.8,715.81 crore for the comparable period last year, mainly on account of unmet under recoveries on account of non-realization of market related prices for Diesel, PDS Kerosene and LPG (Domestic), which still stands at Rs.13,227 crore for the period April-December 2012.
In view of loss for the nine months and due to uncertainty in estimation of profit for the year pending clarity on the extent of compensation for the under recoveries suffered on sales of HSD, SKO (PDS and LPG (Domestic), no provision has been made for current tax and deferred tax for the current period, the company said.
Net sales, including subsidy from government, during the period, increased by 13 percent to Rs.317,670.71 crore from Rs.280,219.33 crore in the corresponding period last year, while other operating income amounted to Rs.744.67 crore, compared with Rs.976.16 core for Apr-Dec period in 2011.
During the nine-month period, an amount of Rs.29,568.53 crore has been accounted as grants from government towards Oil Marketing Companies GOI Special Oil Bonds, compared with Rs.24,624.76 crore for the Apr-Dec 2011 period.
Average gross refining margins for the Apr-Dec 2012 period was $2.22 per barrel, compared to $3.41 per barrel for the corresponding period last year.
During the Apr-Dec 2010 period the company suffered net under-realization of Rs.13,226.84 crore on sale of MS, HSD, SKO (PDS) and LPG-Domestic due to non-revision of retail selling prices in line with international prices, compared with Rs.8,507.11 crore for the corresponding period last year.
At the BSE, Indian Oil closed Wednesday's trading at Rs.319.85, up Rs.2.50 or 0.79 percent on a volume of 132,000 shares.
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