IOC Q4 net down 29 percent at 3,905 cr

IOC Q4 net down 29 percent at 3,905 cr

Net profit in the January-March quarter stood at Rs 3,905.16 crore from Rs 5,556.77 crore a year ago, IOC Chairman R S Butola said.

IOC had to absorb Rs 4,845 crore of loss on fuel sales during 2010-11 fiscal after accounting for cash subsidy from the government and assistance from upstream firms ONGC/GAIL..

“There were Rs 3,803 crore of net under-recovery (revenue loss) on diesel, domestic LPG and kerosene during 2010-11. Also, there was an under-recovery of about Rs 1,000 crore on petrol as we did not raised prices in line with international parity despite government freeing petrol price from control in June last year,” he said.

Besides, the company had to incur Rs 1,500 crore in interest on borrowings it had to resort to because government did not release cash subsidy in time. Higher depreciation was also a factor for the dip in profits.

“But for these factors, our net profit in 2010-11 would have been higher than the previous year’s” he said.

IOC got Rs 22,604.84 crore in cash fuel subsidy and Rs 16,703.73 crore from upstream firms ONGC/GAIL.

IOC earned $7.82 on processing every barrel of crude oil Q4 of 2010-11 as against a gross refining margin of $3.38 per barrel in the year ago period.

IOC net profit fell to Rs 7,445 crore in 2010-11 fiscal from Rs 10,221 crore in the previous year. IOC broke the Rs 300,000 cr barrier by clocking Rs 328, 744 cr turnover in 2010-11 fiscal.