Indian Oil Corporation has suffered a big dent in the second quarter of the current fiscal by posting a net loss of Rs 7,486 crore for the three months ended September 30, 2011.

It had posted a net profit of Rs 5,294 crore for the same quarter last fiscal.

“It is an unusual year. The July-September 2011 quarter has been the worst for the company,” said Mr R.S. Butola, Chairman, Indian Oil. The loss is mainly on account of an increase in unmet under-recoveries and rise in interest expenditure because of rupee depreciation.

The company's borrowings as on September 2011 stood at Rs 73,296 crore, up by Rs 21,000 crore from March 31, 2011.

“…If the present situation continues it will become difficult to borrow after December, which lead to difficulties in sourcing crude oil, resulting in drop in output. Drop in output will impact product supplies,” Mr Butola said.

On whether there was a possibility of cutting petrol price sometime soon, Mr Butola said, “All depends on the prevailing international product pricing. It is very difficult to say now,” he said. On a possible rollback of the latest petrol price hike, he added: “So far we have not heard or been told of any such rollback from the Government. Even if we are asked for the same the Government has to suggest a possible compensation to us for it.”

During July-September this fiscal year the company incurred revenue loss of Rs 11,757 crore on selling diesel, kerosene and domestic cooking gas below market price.

For the first half of the current fiscal, the company posted a loss of Rs 11,204 crore compared with a profit of Rs 1,906 crore for the year-ago period. Currently, IndianOil is losing close to Rs 180 crore daily on selling petroleum products at a regulated price.

The company's other expenditure for April-September 2011 period also includes Rs 2,309.59 crore towards foreign exchange loss, out of this Rs 1,231.24 crore was towards crude oil liabilities.

For the three-month ended September 30, 2011, the unmet under-recoveries on account of non-realisation of market related prices of diesel, kerosene under public distribution system, and domestic LPG stood at Rs 7,837 crore. The same for the half year period ended September 2011 stood at Rs 15,509 crore.

The average Gross Refining Margins for the period April-September 2011 stood at $2.42 per barrel from $4.71 per barrel in the corresponding period last year.

IndianOil's net turnover for the second quarter of the current fiscal rose to Rs 88,725.36 crore from Rs 69,345.41 crore during the corresponding period last year.

The company has accounted for budgetary support of Rs 8,200.85 crore for the six-month period ended September 2011 compared with Rs 7,219.95 crore from the year-ago period towards under-recovery on sale of its products in the Profit and Loss account as revenue grant.

For the six-month period ended September 2011, the net turnover rose to Rs 1,80,825.53 crore (Rs 1,40,627.24 crore).

The company's shares closed at Rs 288, down 3.73 per cent from the previous close.

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