IndianOil records 47 % fall in profits for 2011-12
New Delhi   29-May-2012

IndianOil recorded a net profit of Rs 3,954.62 crore for the year 2011-12, a sharp 46.8 per cent fall compared to Rs 7,445.48 crore during the corresponding period, owing to higher interest cost of Rs 2,918 crore on account of delay in receipt of compensation from the Petroleum Ministry and due to levying of entry tax by the Uttar Pradesh Government, which amounted to Rs 8,157 crore.

At the same time though the country’s biggest oil marketer registered a turnover of Rs 4,09,957 crore for 2011-12, which is 27 per cent more than Rs 3,28,652 crore of the corresponding period. Similarly IndianOil’s net profit for the January-March quarter quadrupled to Rs 12,670.43 crore from Rs 3,905.16 crore of the corresponding period. The company’s sales rose 30 per cent to Rs 128,433.96 crore from Rs 98,482.45 crore from the corresponding period Though the Maharatna company’s 2011-12 net profit dipped over delay of compensation from the Government, IndianOil chief R S Butola told mediapersons while declaring the annual results, that the Rs 45,484 crore subsidy received by him, more or less, made up for the revenue loss generated due to selling diesel, kerosene and cooking gas below market price.

IndianOil had lost Rs 75,469 crore on selling diesel, domestic LPG and kerosene at government controlled rates in 2011-12 fiscal. Of this, the upstream oil companies like ONGC gave Rs 29,961 crore.

After the Government subsidy of Rs 45,486 crore, the company had to absorb just Rs 22.37 crore loss on the sale of the common man’s fuels.

Butola said that the company’s borrowings rose to about Rs 88,000 crore from Rs 52,734 crore as on March 31, 2011. Elaborating about the capex plans, he said that the company will invest Rs 56,200 crore in the 12th Five Year Plan Period.