IOC stories first-ever back-to-back quarterly loss regardless of reserving LPG subsidy acquired in Oct

State-owned Indian Oil Corporation (IOC) on Saturday reported a internet 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 internet lack of Rs 272.35 crore compares to a revenue of Rs 6,360.05 crore in July-September 2021, in accordance with 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. This 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 under 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 authorities on October 12 prolonged a one-time grant of Rs 22,000 crore to 3 state-owned gasoline retailers to cowl the losses they incurred on promoting home cooking fuel LPG under 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 company had suffered under-recoveries from the sale of domestic LPG in the financial year 2021-22 and in six months ended on September 20, 2022. To compensate for under-recoveries, the Government of India has recently approved a one-time grant of Rs 10,801.00 crore. This grant has been recorded under revenue from operations in financial results for the period April- September 2022,” IOC mentioned within the submitting.

IOC, in addition to different state-owned gasoline 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 step with the price to assist the federal government comprise runaway inflation.

The three corporations, who’re presupposed to revise petrol and diesel costs day by day in step with the price, haven’t modified charges for over six-and-half-months now – the longest freeze in charges since gasoline pricing was deregulated.

In April-June (the primary quarter of 2022-23 fiscal), IOC booked a internet 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 internet loss towards a revenue of Rs 12,301.42 crore within the year-ago interval.

This was regardless of a file 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 current price GRM for the period April-September 2022 after offsetting inventory loss/gain comes to USD 22.19 per barrel. However, the suppressed marketing margins of certain petroleum products have offset the benefit of an increase in GRM,” IOC mentioned.

Revenue 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).

However, exports had been right down to 0.86 million tonnes in July-September from 1.24 million tonnes in the identical interval final 12 months. This 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.