State-owned Oil and Natural Gas Corp (ONGC) today reported more than doubling of its net profit in March quarter as rupee depreciation helped offset a steep rise in fuel subsidy outgo.
Net profit in January-March quarter rose to Rs 5,644 crore from Rs 2,791 crore a year ago, ONGC Chairman and Managing Director Sudhir Vasudeva told reporters.
ONGC paid Rs 14,170 crore for subsidising diesel, domestic LPG and kerosene as against Rs 12,136 crore outgo in Q4 last fiscal.
The subsidy outgo was made good by rupee depreciation - from Rs 47.95 to a US dollar in Q4 2010-11 to Rs 50.29 to a US dollar in same period of 2011-12 fiscal.
"Every rupee depreciation against US dollar, increases our topline by about Rs 1,600 crore," ONGC Director (Finance) A K Banerjee said.
ONGC gets paid for both crude oil and natural gas it produces in US dollar and rupee depreciation is a bonanza for it.
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