IOC posts net profit at Rs 9,611 cr in Q2, thanks to government subsidy

State-owned Indian Oil Corporation (IOC) today reported a net profit of Rs 9,611 crore for the second quarter of the current fiscal year against a net loss of Rs 7,485.55 crore in the year-ago period.

Announcing the results, IOC Chairman R S Butola said the price of the commodity will be reviewed on a daily basis and accordingly the prices will be revised. This does not mean that the prices of the fuel will change on a daily basis, but if and when the company finds the need for the same given how the prices fluctuate in the international market.    

The profit comes in the wake of the government's compensation of Rs 16,093.97 crore to the company in the first half of the current fiscal year (FY13). All of this subsidy from the government has been accounted for in the second quarter results of the oil firm.

On Thursday, the government announced oil subsidy of Rs 30,000 crore for the state-run oil retailers. The same is subject to approval in Parliament. However, the amount is much less than what the Oil Ministry had asked for (Rs 50,000 crore).

Total income of IOC in the second quarter increased by 30.31 per cent to Rs 1,06,850 crore from Rs 81,994 crore in the last year.

Shares of IOC closed the day on the Bombay Stock Exchange at Rs 262, down 1.02 per cent. Total number if shares traded on the BSE today were 2.55 crore.