Bharat Petroleum net down 91 percent

June 17th, 2008 - 9:27 pm ICT by IANS  

New Delhi, June 17 (IANS) State run fuel marketing company Bharat Petroleum Tuesday reported a 91 percent drop in its net profits for the quarter ended March 31, as margins were hit by selling gasoline, diesel and cooking gas at below cost. The company said its net profit after tax fell to Rs.584 million ($14.6 million) for the quarter ended March 31, from Rs.6.7 billion ($165.7 million) for the corresponding period of the last fiscal.

The board, nevertheless, recommended a 40 percent dividend, a statement issued to the Bombay Stock Exchange said.

The company’s total income rose to Rs.244 billion from Rs.327 billion.

The markets, however, had discounted the fall in profits as the company’s shares rose 1.78 percent at Rs.280.75, against the previous close of Rs.275.85.

Indian Oil Corp, the country’s largest refiner, had earlier reported its first losses in nine quarters, as it was also forced to retail transport and cooking fuels at below costs.

The Fortune 500 company said last month its losses amounted to Rs.4.14 billion ($97 million) for the three-month period ended March 31, against profits of Rs.15.03 billion for the like period of the previous year.

The losses were incurred despite a 33-percent rise in net revenues to Rs.717.9 billion from Rs.538.18 billion, the company informed the Bombay Stock Exchange in a mandatory filing.

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