IOC profit soars on government subsidy

Indian Oil Corp. (IOC), the country’s largest listed company by sales, said quarterly net profits surged to Rs52.94 billion (US$1.2 billion), beating analyst estimates of Rs31 billion (US$685.69 million), as a cash compensation from the government helped reduce losses from sale of state-set fuel prices. The latest-quarter results included a Rs72.20 billion (US$1.6 billion) payment from the government.The better-than-expected profits could help the company attract investors for its forthcoming follow-on share sale plans, said Chairman Brij Mohan Bansal. (November 13, 2010)