Indian Oil posts biggest Q2 loss
By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
Indian Oil Corporation (IndianOil) has posted a loss of Rs. 7,486 crore for the second quarter of 2011-12 as compared to a profit of Rs. 5294 crore for the same quarter of the previous year. The loss is mainly on account of increase in unmet under-re
Indian Oil Corporation (IndianOil) has posted a loss of Rs. 7,486 crore for the second quarter of 2011-12 as compared to a profit of Rs. 5294 crore for the same quarter of the previous year. The loss is mainly on account of increase in unmet under-recoveries and increase in interest expenditure. The loss was the biggest quarterly loss in the history of a listed public sector firm.
"We have not been compensated for selling diesel, domestic LPG and kerosene at cost lower than market price. As a result, we have to borrow heavily to meet our day-to-day expenses, including buying crude oil," RS Butola, Chairman, IndianOil, said.
The company’s borrowings have touched a whopping Rs73,296 crore and its debt-equity ratio worsened to 1.66:1 from 0.95:1 as on March 31.
"At this rate, no bank will be willing to lend us beyond December. We will not be able to pay for crude oil we import and thus we will have to shut some refineries which would result in disruption of fuel supplies," he said.
However, the gross turnover for the second quarter of the current financial year ended September 2011 rose by 25.5 percent to Rs. 93,868 crore from Rs. 74,766 crore during the same period last year. The
For the six month period of April-September 2011, the Gross Turnover rose by 26.8% to Rs. 1,93,625 crore from Rs. 1,52,738 crore during the same period last year. The Corporation has posted a loss of Rs. 11,204 crore for the first half of 2011-12 as compared to a profit of Rs. 1906 crore for the same period of the previous year.
The unmet under-recovery on account of non-realisation of market-related prices for Diesel, PDS Kerosene and LPG (Domestic) for the quarter was Rs. 7837 crore and Rs. 15,509 for the six-month period of April-September 2011.
“IndianOil’s product sales volumes, including exports, rose by 4.6% to 17.693 million tonnes during the second quarter of 2011-12. Our quarterly refining throughput went up by 7.5% to 13.046 million tonnes as compared to the corresponding quarter of the previous year. The throughput of the Corporation’s countrywide pipelines network went up by 2.211 million tonnes to 17.755 million," he added.
under-recoveries
IndianOil
First Published : November 10, 2011 12:00 am