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IOC Third Quarter Net Profit Up 52 Per Cent

  • Indian Oil Corporation reported a 52 per cent rise in its net profit during three months ended December 31,2011, to Rs. 2,488.44 crore from Rs. 1,634.76 crore in the year-ago period IOC Chairman R. S. Butola told reporters.According to IOC Chairman R.S. Butola the company 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.IOC had challenged the Uttar Pradesh Government decision to levy a $ 5.78 a barrel entry tax on crude oil the company imported into the State for processing at its 8 million tonne per annum refinery at Mathura in the Supreme Court.
  • The apex court asked IOC to deposit 50 per cent of the assessed till 2007-08. The Rs. 6,168 crore is the liability from that time till date.IOC received government compensation to make up for part of the revenues the company lost on selling diesel, domestic LPG and kerosene below cost for second and third quarter during the quarter under review, he said.The government has promised to give about 46 per cent or Rs. 45,000 crore of the Rs. 97,300 crore in revenue that IOC, Bharat Petroleum and Hindustan Petroleum lost on selling diesel, domestic LPG and kerosene below cost in first nine months of current fiscal.
  • Also, the government raised contribution of upstream firms like Oil & Natural Gas Corp (ONGC) to 37.91 per cent of the total revenues that retailers like IOC lost on selling fuel below cost. Upstream firms had in first half made good one-third of revenue lost.The increased upstream share for the first half also came in the third quarter, boosting profit.For the first nine months this fiscal, IOC reported a net loss of Rs.8,715.81 crore as part of the losses on fuel sales were not covered by the government compensation scheme.
  • Mr. Butola said IOC lost Rs. 53,321 crore in revenue on diesel, domestic LPG and kerosene sale from April-December. Of this, it got Rs. 20,189 crore from upstream firms like ONGC and another Rs. 24,625 crore from the government in form of cash subsidy.“After accounting for upstream assistance and government subsidy, we had to absorb Rs 8,507 crore of net under recovery on fuel sales,” Butola said.

CESC

  • CESC, the flagship company of the RP-Sanjiv Goenka group took a big hit on its bottom line during the third quarter ended December 31, 2011, due to delay in obtaining a tariff order for the year. The company is engaged in power generation and distribution and services.
  • “Delay in obtaining tariff order for the year coupled with steep inflationary pressure (including fuel) resulted in a drop in profit by 32 percent for the quarter, the company said. The net profit stood at Rs.74 crore against Rs.114 crore in the previous quarter and Rs.110 crore in the same quarter of the previous fiscal. Net sales stood at Rs.1,019 crore against Rs.1,223 crore in the second quarter. The company said that export of power was substantially higher during this quarter.

RS. 2 INTERIM FROM ENGINEERS INDIA

  • Engineers India has reported a net profit of Rs. 151.26 crore in the third quarter ended December 31, 2011, against Rs. 122.45 crore in the same period in the previous year.The turnover has risen to Rs. 792.50 crore from Rs. 677.10 crore in the year-ago period. It has declared an interim dividend of Rs. 2 per share of the face value of Rs. 5 each.

1:2 BONUS FROMHATSUN AGRO

  • Hatsun Agro Product will be capitalising reserves and issuing bonus shares in the ratio of one equity share of Re.1 each for every two shares.The board of directors has also declared an interim dividend of 60 paise per share of the face value Re. 1. Besides a special interim dividend of 50 paise has been announced in view of the completion of the silver jubilee year of the company.The company has reported a turnover of Rs. 381.83 crore in the third quarter ended December 31, 2011, against Rs. 324.27 crore in the year-ago period. The net profit has risen to Rs. 10.67 crore from Rs. 6.43 crore.

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