IndianOil Corporation reported a 33 per cent drop in net profit for the fourth quarter of fiscal 2014-15 at ₹6,285.35 crore due to an inflated net profit for the corresponding quarter last year. The company had a net profit of ₹9,389.85 crore in the fourth quarter of 2013-14.

However, the company’s Chairman and Managing Director B Ashok said the net profit for last year’s fourth quarter was inflated due to compensation from the government for selling sensitive products at below market rates flowing in together in one quarter.

The compensation received from the government in the fourth quarter last year was ₹7,735 crore.

The company’s net sales for the quarter also fell sharply by 30 per cent to ₹93,832.03 crore from ₹1,34,867.42 crore in the same quarter last year. IndianOil’s board also recommended a dividend of ₹ 6.60 per equity share.

For the fourth quarter, the company reported a gross refining margin of $8.77 per barrel against $2.17 per barrel in the same quarter last year. In actual value terms, refinery margin during the quarter was ₹ 5,638 crore against ₹ 2,642 crore in the same quarter last year.

In 2014-15, IndianOil’s net profit was ₹ 5,273 crore, nearly 24 per cent lower than ₹ 7,019 crore in the same quarter last year. “Due to the physical performance of our refineries, we have been able to make up the entire inventory loss of ₹15,600 crore for the full year and managed to report a profit,” said Ashok.

Ashok added that all the refineries of the company have managed to improve distillate yields, reduce fuel loss and energy consumption. For the full fiscal, the company’s net sales stood at ₹4,37,526.13 crore, around 7.5 per cent lower than the previous fiscal.

The company also plans to ramp up its presence in the natural gas sector. On Friday, the company’s shares closed 1.36 per cent lower at ₹ 355.95 on the BSE.

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