Financial Daily from THE HINDU group of publications
Saturday, May 27, 2006
Financial Daily from THE HINDU group of publications Saturday, May 27, 2006 |
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Financial Performance Corporate Results - Petroleum Four-fold rise in IOC Q4 net profit Our Bureau
Facts and figures IOC's total income rose 35 per cent to Rs 51,982.96 crore in the fourth quarter of 2005-06 from Rs 38,504.29 crore during the same period last year. For the financial year 2005-06, the company has registered a net profit of Rs 4,915.12 crore as against Rs 4,891.38 crore for 2004-05.
Mr Sarthak Behuria (right), Chairman, Indian Oil Corporation, and Mr S.V. Narasimhan, Director-Finance, at a news conference in the Capital on Friday. - Kamal Narang
New Delhi , May 26 Indian Oil Corporation Ltd (IOC) has reported a four-fold gain in its net profit for the quarter ended March 31, 2006. The company's net profit rose to Rs 4,030.57 crore for the fourth quarter from Rs 892.92 crore for the quarter ended March 31, 2005. According to Mr Sarthak Behuria, Chairman, IOC, the company was able to achieve this due to a combination of oil bonds, revenues from offloading crossholdings in GAIL (India) Ltd and discounts from upstream oil companies. The company's net under-realisation for 2005-06 stood at Rs 14,011 crore without the oil bonds and discounts from refiners. IOC received refiners' discount of Rs 2,666 crore and oil bonds of Rs 6,571 crore from the Government. Besides, it also made a profit of close to Rs 430 crore by selling half of its stake in GAIL (India) Ltd. IOC's total income rose 35 per cent to Rs 51,982.96 crore in the fourth quarter of 2005-06 from Rs 38,504.29 crore during the same period last year. The company's board, which met here today, has recommended a final dividend of Rs 12.50 per share on a face value of Rs 10 (125 per cent).
For the financial year 2005-06, the company has registered a net profit of Rs 4,915.12 crore as against Rs 4,891.38 crore for 2004-05. Mr Behuria said the company could post profits similar to last fiscal because it received oil bonds worth Rs 6,571 crore against nil during 2004-05 and near doubling of other income from Rs 1473.67 crore in 2004-05 to Rs 2,531.20 crore in 2005-06. The total income rose to Rs 1,76,339.74 crore from Rs 1,39,778.29 crore during the last fiscal. The group posted a consolidated net profit of Rs 4,932.42 crore as compared to Rs 5,469.23 crore for 2004-05. IOC's borrowing rose 52 per cent to Rs 26,404 crore in 2005-06 from Rs 17,320 crore in the last fiscal. Speaking to media persons, Mr Behuria said IOC was losing about Rs 100 crore on a daily basis due to the selling the four petroleum products — petrol, diesel, LPG and kerosene — below the production cost. This was because the finished product price is not based on the current international crude price. The company has projected a total under-realisation of Rs 8,300 crore in the first quarter of current financial year. Mr Behuria said that petrol was currently being sold at a loss of Rs 10.55 a litre, diesel at Rs 9.88 a litre, kerosene at Rs 16.78 per litre and LPG at a loss of Rs 119.91 per cylinder). During April-May of this fiscal, the company lost Rs 397 crore on sale of petrol, Rs 2,490 crore on diesel, Rs 1,754 crore on kerosene and Rs 880 crore on LPG. About the likely losses which the company would suffer post merger of IBP Co Ltd with the parent (IOC), Mr Behuria said, if there was no change in the domestic retail price or the prevailing crude price scenario, then IOC would take a hit of Rs 400 crore per month. IOC has convened an EGM of shareholders on May 29 to seek approval for merging its subsidiary IBP Co with itself, Mr Behuria said. As regards merger of Bongaigaon Refinery & Petrochemicals Ltd with the parent, he said that in-principle approval of the two boards had been taken and the valuation was in progress. Besides, the company has completed merger of its subsidiary Indian Oil Blending on May 12 and has received approval from the Ministry of Company Affairs for the merger. The IOC stock on Friday at the BSE closed at Rs 463.45 up 2.49 per cent from the previous days close.
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