In the first fiscal after the dismantling of the administered pricing mechanism (APM) in the oil sector, the state-run India Oil Corporation (IOC) registered a 112 per cent increase in its net profit from Rs 2,885 crore in 2001-02 to Rs 6,115 crore in 2002-03.
Its turnover went up by 4.34 per cent to Rs 1,19,848 crore last year from Rs 1,14,864 crore during 2001-02, M S Ramachandran, chairman and managing director, IOC, said at a press conference here today.
The company had recommended a bonus issue in the ratio of 1:2 earlier this month. It announced a final dividend of 160 per cent with a total outgo of Rs 2,258 crore.
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An interim dividend at 50 per cent resulting in an outgo of Rs 389 crore had already been paid in March. During 2001-02, IOC had paid a total dividend of 110 per cent with an outgo of Rs 857 crore.
Ramachandran said that the whopping jump in net profit was mainly assisted by higher refinery margins and greater transportation of fuel through pipelines.
He said the higher profits were result of a series of measures taken to enhance the bottomline. Apart from higher refinery margins and substantial savings on transportation costs due to increased use of pipelines, greater emphasis was laid on capacity utilisation last year, which reached 92.5 per cent (88.5 per cent).