State-owned Indian Oil Company (IOC) on Saturday reported a web lack of Rs 272.35 crore for July-September regardless of reserving over Rs 10,800 crore of LPG subsidy it acquired from the federal government after the quarter ended.
The web lack of Rs 272.35 crore compares to a revenue of Rs 6,360.05 crore in July-September 2021, in response to an organization’s submitting with the inventory exchanges.
The decline comes on the again of a Rs 1,992.53 crore loss incurred within the earlier April-June quarter. That is the primary time that IOC has booked losses in two straight quarters – all as a result of it offered petrol, diesel and cooking fuel (LPG) at charges beneath value.
The loss within the second quarter of the present fiscal was regardless of accounting for Rs 10,801 crore of one-time grant that the federal government had introduced on October 12.
The federal government on October 12 prolonged a one-time grant of Rs 22,000 crore to a few state-owned gas retailers to cowl the losses they incurred on promoting home cooking fuel LPG beneath value in two years beginning June 2020.
An official defined that although the subsidy was offered by the federal government after the quarter had ended however it was for the interval as much as September 2022 and so it was thought-about following the precept of ‘accrual-based’ accounting.
“The corporate had suffered under-recoveries from the sale of home LPG within the monetary 12 months 2021-22 and in six months ended on September 20, 2022. To compensate for under-recoveries, the Authorities of India has just lately permitted a one-time grant of Rs 10,801.00 crore. This grant has been recorded below income from operations in monetary outcomes for the interval April- September 2022,” IOC stated within the submitting.
IOC, in addition to different state-owned gas retailers, had booked heavy losses within the first quarter of the present fiscal and didn’t revise petrol, diesel and cooking fuel LPG costs in keeping with the fee to assist the federal government include runaway inflation.
The three companies, who’re speculated to revise petrol and diesel costs day by day in keeping with the fee, haven’t modified charges for over six-and-half-months now – the longest freeze in charges since gas pricing was deregulated.
In April-June (the primary quarter of 2022-23 fiscal), IOC booked a web lack of Rs 1,992.53 crore.
For the primary half of the present fiscal, the corporate has now collected a Rs 2,264.88 crore web loss towards a revenue of Rs 12,301.42 crore within the year-ago interval.
This was regardless of a document refining margin of USD 25.49 per barrel throughout April-September in comparison with USD 6.57 a barrel in the identical interval final 12 months.
“The core gross refining margin (GRM) or the present value GRM for the interval April-September 2022 after offsetting stock loss/achieve involves USD 22.19 per barrel. Nevertheless, the suppressed advertising margins of sure petroleum merchandise have offset the good thing about a rise in GRM,” IOC stated.
Income from operations soared to Rs 2.28 lakh crore in July-September from Rs 1.69 lakh crore a 12 months again, the submitting confirmed.
IOC offered extra petroleum merchandise domestically in Q2 (21.56 million tonnes versus 18.93 million tonnes final 12 months) and refined extra crude oil (16.09 million tonnes versus 15.27 million tonnes in Q2 of FY22).
Nevertheless, exports had been all the way down to 0.86 million tonnes in July-September from 1.24 million tonnes in the identical interval final 12 months. That is probably as a result of the federal government slapped a windfall revenue tax on the export of petrol, diesel and ATF starting July 1.