Indian Oil Corporation on Monday reported a 52 per cent rise in net profit for the quarter ended December 31 to Rs 2,488.44 crore after the Centre compensated the company for selling fuels below cost. Last year, the company had reported a net profit of Rs 1,634.76 crore for the corresponding period.

The gross turnover for the third quarter rose by 26.8 per cent to Rs 1,04,064 crore from Rs 82,097 during the same period last year.

“We had made a provision of Rs 6,168 crore for payment of entry tax on crude oil and gas imported in Uttar Pradesh for use at Mathura refinery,” said Mr R S Butola, Chairman, IOC.

The company had challenged the UP Government's decision to levy a $5.78 a barrel entry tax on crude oil imported into the State for processing at its Mathura refinery, in the Supreme Court.

The gross under recovery for Indian Oil stood at Rs 17,692 crore for the quarter under review.

“After accounting for upstream assistance and Government subsidy, we had to absorb Rs 8,507 crore of net under recovery on fuel sales,” Mr Butola said.

IOC had debt of Rs 78,696 crore rupees at December-end, Finance Director, Mr P.K. Goyal said.

The gross refining margins during the third quarter were $4.31 per barrel, as against $5.88 in the corresponding quarter last fiscal.

IOC may, incidentally, renew an annual deal with Iran to buy 1.5 million tonnes of crude oil for the fiscal year starting April 2013, Mr Butola said. Iran's oil sales to India have been fraught with payment problems in the past 13 months after a clearing mechanism was scrapped and Indian refiners have sought alternative supplies.

The company expects to commission the Paradip Refinery by mid-2013.

The IOC scrip closed at Rs 276.15 on the BSE, up 0.09 per cent from its previous close.

> heena.k@thehindu.co.in

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