Oil India Ltd (OIL) on Tuesday reported 5.34 per cent drop in its net profit for the second quarter ended September 2013 at Rs 903.64 crore as compared to Rs 954.57 crore in the same period last fiscal.
The public sector oil firm has reported 12.58 per cent higher turnover at Rs 2,836.40 crore (Rs 2,519.37 crore) during July-September this year.
The decrease in net profit was due to lesser production of oil and gas coupled with subsidy pay-out to compensate public sector oil marketing companies for selling fuel below market cost.
In the second quarter, OIL drilled 4.58 per cent less crude oil at 9.16 lakh tonnes (9.60 lakh tonnes), while gas output dropped 3.48 per cent to 0.666 billion cubic metres (bcm).
The company has blamed bandhs and blockades resulting in drop in hydrocarbon output.
OIL forked out Rs 2,233.70 crore (Rs 2,078.17 crore) as subsidy to IOC, BPCL and HPCL.