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State-owned Oil India Ltd (OIL) has reported a 30.5 per cent rise in net profit during the fourth quarter ended March 31, 2011 despite a sharp rise in its fuel subsidy burden.
The company reported a net profit of Rs 562.61 crore during the January-March quarter compared with Rs 430.99 crore in the year-ago period, it said in a statement.
During the fourth quarter of this fiscal, revenues increased to Rs 2,018.93 crore from Rs 1,832.14 crore in the fourth quarter of the 2009-10 fiscal.
During the 2010-11 fiscal, OIL’s net profit was up 10 per cent at Rs 2,887.73 crore.
The net profit was up despite the company having to pay Rs 3,293.08 crore to subsidise diesel, domestic LPG and kerosene in 2010-11 against Rs 1,548.81 crore in the previous year.
Upstream oil firms like OIL, Oil and Natural Gas Corporation and GAIL India give discounts on crude oil they sell to refiners to make up for part of the losses they incur on selling diesel, domestic LPG and kerosene at government-controlled rates.
The company said its profit would have been higher by Rs 900.69 crore during the fourth quarter and by Rs 1848.18 crore in the full fiscal if it were not to share the fuel subsidy.
The share of subsidies for exploration companies was increased to 38.8 per cent of the total revenue retailers lost on fuel sales in the 2010-11 fiscal from 33.33 per cent previously.
The increase in subsidy burden saw the profits of ONGC and GAIL fall in the fourth quarter.
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