State-run oil explorer Oil India reported a drop of 7.26 per cent in net profit at Rs 940.29 crore for the third quarter, against Rs 1,013.89 crore during the same period in the corresponding year.
The drop in profit is mainly due to higher subsidy payout to oil marketing companies.
During the last nine months, the company paid Rs 6,042.45 crore as subsidy as compared to Rs 4,478.12 crore during the same period last year, an increase by 34.93 per cent. The subsidy has affected the profit by Rs 3,413.49 crore for the nine months.
However, the company reported a rise of 1.96 per cent in turnover at Rs 2,516.82 crore for the third quarter, against Rs 2,468.52 crore during the corresponding period.
The losses are also due to higher crude cess imposed by the government. The government increased crude cess from Rs 2,500 per metric tonne to Rs 4,500 per metric tonne, resulted in additional burden of Rs 569 crore as statutory levies.
The company also declared an interim dividend of 110 per cent for 2012-13.