Indian Oil Corporation Limited surprised the street with topline and bottomline growth aead of estimates. Net profit jumped 330 percent to Rs 14512 crore against expectation of Rs 13600 crore.
State-run oil marketing company Indian Oil Corp’s fourth quarter results beat analyst estimates by a wide margin. Sales grew 11 percent to Rs 1.28 lakh crore from Rs 1.15 lakh crore in the December quarter. Net profit also jumped more than four times from Rs 3332 crore to Rs 14512 crore.
Analysts on an average had expected the company to report a net profit of Rs 13600 crore on revenues of Rs 1.24 lakh crore.
IOC said it earned USD 2.39 on turning every barrels of crude oil into fuel in Q4 as opposed to USD 2.26 per barrel gross refining margin in the same period the previous year.
Other income was up 14 percent to Rs 1093 crore from Rs 956 crore in third quarter. However, finance cost has reduced from Rs 1672 crore to Rs 1376 crore. IOC also paid tax of Rs 642 crore in fourth quarter. EPS or earnings per share for the fourth quarter was Rs 59.77.
IOC sells diesel, cooking gas (LPG) and kerosene at government-controlled rates which are way below the cost. Part of the losses incurred in the process are reimbursed by way of cash subsidy from the government.
The government did not pay any cash subsidy in the third quarter and released lumpsum in the quarter under review.
IOC said it will receive Rs 53,278.07 crore as cash subsidy from the government for the full 2012-13 fiscal, up from Rs 45,485.84 crore in the previous financial year.
Besides, the company got Rs 31,966.84 crore from upstream firms like Oil and Natural Gas Corp (ONGC) as support for selling diesel and cooking fuel at below market price.
Despite the government subsidy and upstream support, the company booked Rs 548.49 crore loss on the fuel sale in the fiscal.
The company posted a net profit after tax of Rs 4449 crore for the year ended March 31, 2013 as compared to Rs 4225.98 crore last year. Total Income has increased from Rs 412111.16 crore to Rs. 465291.3 crore in the same period.
The board has recommended a dividend of Rs 6.2 per equity share.
The stock closed at Rs 294.80, up Rs 3 or 1 percent.
(With inputs from PTI)