IOC posts 16% drop in net profit

State-owned Indian Oil Corporation (IOC), the country’s biggest oil marketing company, today posted a 16 per cent drop in fourth-quarter net profit at Rs 5,556 crore, compared to the same quarter last year. Net sales rose over 24 per cent to Rs 66,116 crore.

For 2009-10, net profit rose 246 per cent to Rs 10,220 crore on inventory gain, foreign exchange gain and lower interest burden. Net sales, however, declined over 5 per cent to Rs 2,49,271 crore. For the year, IOC recommended a dividend of Rs 13 per share. The gross refining margin in 2009-10 was $4.47 per barrel, up from $3.69 in 2008-09.

“The fiscal’s better result is a combination of Rs 2,541 crore inventory gain, Rs 940 crore gain on account of foreign exchange fluctuation and a reduction in interest burden by Rs 446 crore,” said B M Bansal, chairman of IOC. Bansal said the company had planned a capex of Rs 13,000 crore for 2010-11.