NEW DELHI :  State-owned Indian Oil Corp Ltd reported a 35.3% year-on-year fall in its bottomline for the quarter ended March to 93.90 bln rupees mainly on high base as the company had received a large chunk of subsidy compensation for 2012-13 in Jan-Mar last year. Typically, the Jan-Mar quarter accounts for the adjusted subsidy for the full year.

As per an ad-hoc subsidy-sharing mechanism, GAIL India, Oil and Natural Gas Corp and Oil India Ltd give discount to oil marketing companies for sale of subsidised fuels. The government pays its part of subsidy in cash.

The company’s net profit was, however, higher than expected. Indian Oil was expected to report a decline of 49% year-on-year in net profit for Jan-Mar while its sales were seen down 4% year-on-year at 1.23 trln rupees, according to the average of estimates given by ten brokerages.

The company’s net sales increased 5.8% year-on-year to 1.34 trln rupees during the quarter.

During Jan-Mar, the country’s largest oil refiner accounted for 185.05 bln rupees as government’s share of compensation for the selling kerosene, liquefied petroleum gas, and kerosene at government-administered prices.

The company’s average gross refining margin–the difference between the cost of crude oil purchased and the price of products sold–for Jan-Mar was down at $2.17 per barrel, compared with $3.33 per barrel a year ago. For the full financial year ended March, the company’s net profit rose to 70.19 bln rupees from 50.05 bln rupees in the previous year, the company said in a release.                -Cogencis

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