The Hindu Business Line : IBP net profit dips 73 pc to Rs 59 cr

Mr Sarthak Behuria (left), Chairman, IBP Co Ltd, and Dr N.G. Kannan, Managing Director, at a press conference in the Capital on Wednesday. - Ramesh Sharma

New Delhi , May 18

IBP Co Ltd, a group company of Indian Oil Corporation Ltd, on Wednesday reported a 73 per cent dip in its net profit for the year 2004-05.

The net profit fell to Rs 58.87 crore against Rs 214.66 crore during the corresponding period last year.

The turnover rose 28 per cent to Rs 13,663.90 crore in 2004-05 compared with Rs 10,711.12 crore in 2003-04.

According to the company's Chairman, Mr Sarthak Behuria, the reduction in net profit was mainly due to under-recoveries to the tune of Rs 352 crore in kerosene and LPG, and Rs 211 crore in motor spirit and diesel.

"The under-recoveries are on account of non-revision of retail selling prices in parity with the movement of product prices in the international market," he said.

IBP, which had posted a net loss of Rs 167.55 crore in first nine months of 2004-05 fiscal, reported a 142 per cent jump in its net profit to Rs 226.42 crore against Rs 93.54 crore profit in April-December 2003-04.

Despite the under-recoveries, the company has been able to post a marginal profit, mainly on account of arrears of Rs 85.48 crore recovered from oil coordination committee as also due to better inventory management and control over operating expenditure.

"We got Rs 2.453 per litre marketing margin on petrol and Rs 2.206 per litre on diesel in April-March quarter.

"In comparison, we had only Rs 1.368 per litre margin on petrol and Rs 0.880 per litre on diesel in April-December," he said.

The company announced a dividend of Rs 10 per share. In April-May this fiscal, IBP lost Rs 130 crore on kerosene and LPG and Rs 286 crore on petrol and diesel.

IBP commissioned 511 new petrol stations in 2004-05 as part of its aggressive retail expansion.

The total number of retail outlets at the end of 2004-05 stands at 3,272 (12 per cent of the industry).

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IBP net profit dips 73 pc to Rs 59 cr

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