Riding on better realisation and higher output, government owned Oil India Ltd (OIL) today reported 24.3% rise in net profit in the second quarter. Net profit in July-September rose 24.29% to Rs 1,138.52 crore as compared to Rs 916.03 crore in the same period a year ago. Net sales rose nearly 38% to Rs 3,270 crore.
“Production in Q2 was a record 0.991 million tonnes, up from 0.939 million tonnes a year ago,” chairman and managing director N M Borah said adding OIL may cross the magical number of 4 million tonnes this fiscal against 3.49 million tonnes last fiscal. The profit was up despite OIL’s fuel subsidy outgo jumping to Rs 844.44 crore in Q2 from Rs 399.40 crore in the same period a year ago.
Government owned upstream companies like ONGC and OIL give discounts to government oil marketing companies like Indian Oil, etc to compensate a third of their losses on sale of diesel, kerosene and domestic LPG at government controlled rates. The company realized $86.27 per barrel for the quarter after giving discounts, up 36.57% from same period last year.