Declining gross refining margins, rising under recoveries and increasing loss on bonds have pushed

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the third quarter net profit on Indian Oil Corporation (IOC) to Rs 696.59 crore. This is a decline of 76.45 per cent in net profit. The state-run firm recorded a net profit of Rs 2,958.59 crore during the October-December quarter last financial year.

The country’s largest oil marketing company sells fuels below cost. IOC will get Rs 7,100 crore for the year ending March as subsidy from the government. Out of which, IOC accounted Rs 4,480 crore in the quarter. At present, IOC is making a loss of Rs 110 crore every day for selling fuel below market cost.

The corporation’s gross turnover for the same period moved up by 6.02 per cent to Rs 70,415 crore from Rs 66,415 crore during the same period last year. In terms of physical performance, the throughput of its refineries and pipelines network was 12.534 million tonnes and 15.875 million tonnes, respectively for the quarter. The product sales inclusing exports for the quarter were 17.645 tonnes.

IOC made a foreign exchange gain of Rs 474 crore in the quarter. According to Bloomberg, IOC and its units have the capacity to refine 60.2 million metric tonnes of crude a year.

IOC scrip at the Bombay Stock Exchange closed at Rs 301.30 down by 0.36 per cent on Friday.