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IOC Reports Quarterly Net Loss of 
7,485.55 Crore
Wednesday, 09 November 2011, 23:32 IST
Mumbai: Joining its state-owned oil marketing peers, Indian Oil Corp (IOC) reported huge losses in the second quarter ended Sep 30 at 
7,485.55 crore owing to high global crude prices and a depreciating rupee.
The country's largest oil retailer during the like period of the previous financial year had posted a net profit of 5,293.95 crore, the company said in a regulatory filing.
"Consequent to non-revision of retail selling price in line with international prices, the company has suffered net under realisation of 15,509.25 crore on sale of diesel, kerosene (PDS) and LPG," IOC said in the filing.
Since petrol has been de-regulated, oil companies can change retail rates to match international prices. But the government does not compensate oil marketing companies for any under recoveries on selling petrol.
Net losses in the first half of the fiscal were logged at 11,204.25 crore, compared to a profit of 1,905.56 crore it earned in the April-September period of 2010-11.
"In view of the loss for April-September and due to uncertainty in estimation of profit for the year pending clarity on the extent of compensation for the under recoveries suffered, no provision has been made for current tax and deferred tax," the company said.
Net sales during the quarter grew 27.8 percent to 89,145.55 crore.
Combined losses of BPCL and HPCL for the first half are more than 12,000 crore.
The government had come in for huge criticism after oil retailers raised petrol prices by 1.80 per litre last week citing depreciation of the rupee and high global crude prices as the reasons.
The latest hike of 1.80 per litre -- the 11th time since June 2010 -- came over and above a steep upward revision of 3.14 a litre on Sep 15, 2011.
At the Bombay Stock Exchange, the shares of the company were trading 3.18 percent lower at 289.65, about 45 minutes before closing bell.
Source: IANS
7,485.55 crore owing to high global crude prices and a depreciating rupee.
The country's largest oil retailer during the like period of the previous financial year had posted a net profit of 5,293.95 crore, the company said in a regulatory filing.
"Consequent to non-revision of retail selling price in line with international prices, the company has suffered net under realisation of 15,509.25 crore on sale of diesel, kerosene (PDS) and LPG," IOC said in the filing.
Since petrol has been de-regulated, oil companies can change retail rates to match international prices. But the government does not compensate oil marketing companies for any under recoveries on selling petrol.
Net losses in the first half of the fiscal were logged at 11,204.25 crore, compared to a profit of 1,905.56 crore it earned in the April-September period of 2010-11.
"In view of the loss for April-September and due to uncertainty in estimation of profit for the year pending clarity on the extent of compensation for the under recoveries suffered, no provision has been made for current tax and deferred tax," the company said.
Net sales during the quarter grew 27.8 percent to 89,145.55 crore.
Combined losses of BPCL and HPCL for the first half are more than 12,000 crore.
The government had come in for huge criticism after oil retailers raised petrol prices by 1.80 per litre last week citing depreciation of the rupee and high global crude prices as the reasons.
The latest hike of 1.80 per litre -- the 11th time since June 2010 -- came over and above a steep upward revision of 3.14 a litre on Sep 15, 2011.
At the Bombay Stock Exchange, the shares of the company were trading 3.18 percent lower at 289.65, about 45 minutes before closing bell.
Source: IANS
