By IANS,
Mumbai : Joining its state-owned oil marketing peers, Indian Oil Corp (IOC) Wednesday reported huge losses in the second quarter ended Sep 30 at Rs.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 Rs.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 Rs.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 Rs.11,204.25 crore, compared to a profit of Rs.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 Rs.89,145.55 crore.
Combined losses of BPCL and HPCL for the first half are more than Rs.12,000 crore.
The government had come in for huge criticism after oil retailers raised petrol prices by Rs.1.80 per litre last week citing depreciation of the rupee and high global crude prices as the reasons.
The latest hike of Rs.1.80 per litre — the 11th time since June 2010 — came over and above a steep upward revision of Rs.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 Rs.289.65, about 45 minutes before closing bell.