IndianOil Q3 net jumps 41 pc to Rs 2,958.59 cr
New Delhi   31-Jan-2009
IndianOil, the country's largest oil firm, today, reported a 41.5 per cent rise' in its third quarter net profit on the back of large quantities of bonds it received from the Government on sale of fuel below the cost. Net profit rose to Rs 2,958.59 crore in October-December period over Rs 2,090.69 crore net income in the same period of 2007-08 fiscal, company Chairman Mr. Sarthak, Behuria told reporters here. 'The Rs 9,083 crore oil bonds received in Q3 negated almost five-fold increase in interest cost to Rs 1300 crore and more than doubled foreign exchange losses to Rs 322crore. Mr. Behuria said the company lost $1.98 on processing every barrel of crude (negative gross refining margin) as product prices were lower than the raw material. IndianOil, had earned $10.43 a barrel GRM Q3 last year. The GRMs in January are $ 5-6 per barrel. "Q4 will be better, there will be no inventory loss and revenue loss," he said. Gross turnover rose 2.6 per cent to Rs 66,399 crore. In the quarter, IndianOil got Rs 9,083 crore of oil bonds for selling petrol, diesel, domestic LPG and kerosene at rates lower than the cost to curb inflation. Government makes up for almost half of the revenue loss IndianOil, Bharat Petroleum and Hindustan Petroleum suffer on fuel sale through issue of oil bonds. One-third of the Revenue loss is made by Oil and Natural Gas Corp, GAIL, India and Oil India Ltd by giving discounts on crude oil and LPG that they sell to the three firms. However, the company reported a net loss of Rs 3,673.41 crore in the first nine months of the current fiscal, mainly due to Q2 losses. In April-December period of last fiscal; the company had posted a net profit of Rs 7,376.85 crore. IndianOil earned $3.37 on processing every barrel of crude oil this fiscal against $9.10 per barrel gross refining margin last year. "Refining margin is lower mainly due to fall in the international crude oil prices resulting in inventory losses," he said. Net sales rose 27.9 per cent to Rs 2,26,662 crore in April-December from Rs 1.77,223 crore in the same period the previous year.