IBP profit falls 73%

IBP on Wednesday reported a 73 per cent drop in its net profit in 2004-05 as it lost Rs 563 crore on selling petrol, diesel, LPG and kerosen...

IBP on Wednesday reported a 73 per cent drop in its net profit in 2004-05 as it lost Rs 563 crore on selling petrol, diesel, LPG and kerosene below the cost. The company announced a dividend of Rs 10 per share.

IBP Chairman S. Behuria said IBP’s net profit fell to Rs 58.87 crore in 2004-05 as opposed to Rs 214.66 crore in the previous year. The company recorded profits in 2004-05 mainly due to better marketing margins in Q4.

IBP, which had posted a net loss of Rs 167.55 crore in first nine months of 2004-05 fiscal, reported a 142 per cent jump in its net profit to Rs 226.42 crore as against Rs 93.54 crore profit in April-December 2003-04.

According to Behuria, ‘‘We got Rs 2.453 per litre marketing margin on petrol and Rs 2.206 per litre on diesel in the January-March quarter. In comparison, we had only Rs 1.368 per litre margin on petrol and Re 0.880 per litre on diesel in April-December.’’

The reduction in profit for the year is mainly due to under-recoveries to the tune of Rs 352 crore in kerosene and LPG, and Rs 211 crore in petrol and diesel.