New Delhi– State-run India Oil Corp (IOC) on Tuesday declared a near doubling in its net profit at Rs 7,883.22 crore for the third quarter ended in December over the same period last year, mainly on the back of higher sales.

The company had reported a net profit of Rs 3,994.91 crore in the same quarter of the last fiscal.

The rise was even sharper sequentially with the oil marketing company (OMC) posting a profit after tax of Rs 3,696 crore in the previous quarter.

IOC’s revenue for the quarter in consideration increased to Rs 1,30,865 crore as compared to Rs 1,15,630 crore in the corresponding quarter of 2017, the company said in a stock exchange filing following a meeting of its board of directors.

The OMC posted a higher gross refining margin (GRM), on converting each barrel of crude to petroleum products, for the April-December period of the fiscal at $8.28 per barrel as against the GRM of $7.36 for the same nine months of 2017.

The refiner said it has accounted for a lower budgetary support of Rs 2,249.92 crore for the first nine months of the current fiscal (April-December), compared to Rs 3,879.73 crore received in the corresponding period of 2017.

Indian Oil said that during the first quarter it settled its liability for entry tax in Haryana.

“During the quarter April-June 2017, the company has settled its liability for entry tax in Haryana, including interest, and consequently, an amount of Rs 2,808.05 crore, being no more provision required has been written back,” it said.

Following the government’s October 2017 decision on revised pay and allowances of employees, IOC said on Tuesday that it has provided for an estimated liability on the account.

“The pay revision implementation is in process and the company does not anticipate any major change in liability on this account,” the oil marketer said.

The IOC Board on Tuesday also declared an interim dividend for the fiscal as well as to issue bonus shares.

“Board of IndianOil has declared an interim dividend of Rs 19 per share of Rs 10 each (that is, at 190 per cent on the paid up equity share capital) for the financial year 2017-18,” the filing said.

“It is further informed that the Board has recommended issue of bonus shares in the ratio of 1:1,” it added.

The IOC stock was trading at Rs 415.40 a share at 3.16 p.m. on Tuesday, up Rs 16.65, or by 4.18 per cent, on its previous close on the BSE. (IANS)

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