Indian Oil Corporation (IOC) has reported a 14.5 per cent rise in January-March net profit as it received fuel subsidy for more than one quarter during the period.
The PSU's net profit for the fourth quarter ended March 31, 2013, rose to Rs 14,512.81 crore from Rs 12,670.43 crore in the same period last year.
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 in the quarter under review.
Of the Rs 53,278.07 crore cash subsidy paid by government for selling diesel and cooking fuel below cost in 2012-13, IOC got Rs 23,709.54 crore in fourth quarter alone. It did not get any compensation in third quarter.
IOC Chairman R S Butola said of the Rs 85,793 crore in revenue it lost on selling diesel and cooking fuel below cost during the full financial year, the company got Rs 53,278.07 crore from the government and another Rs 31,966.84 crore from upstream firms like ONGC.
"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.
Butola said IOC earned $2.39 on turning every barrel of crude oil into fuel in Q4 compared to $2.26 per barrel gross refining margin in the same period the previous year.
The company board recommended a dividend of Rs 6.20 per equity share.
For the full FY13 fiscal, the company reported a net profit of Rs 5,005.17 crore, up 26.5 per cent from Rs 3,954.62 crore in the 2011-12 financial year.
Turnover rose 12 per cent to Rs 447,096.41 crore from Rs 398,476.63 crore.
IOC plans to invest Rs 11,277 crore in current fiscal, 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.
IOC sold 71.2 million tonnes of fuel during 2012-13 as compared to 70.1 million tonnes in the previous year. Including exports, total sales was 76.237 million tonnes while refinery throughput was 54.65 million tonnes.
For the full fiscal, the company earned a GRM of $2.26 per barrel, down from $3.63 a barrel in 2011-12, Butola said.
IOC, which has the second largest petrochemical capacity in the country, sold 1,824 kilo-tons of petrochem in the financial year, compared to 1,480 kt in the previous year.