Riding on the back of subsidy payment received from the government,Indian Oil Corporation (IOC) on Friday reported a net profit of Rs.9,611 crore in the quarter ended September 30, 2012 against a net loss of Rs.7,485 crore in the same period a year ago.
IOC, which reported the largest quarterly net loss by a corporate in the June quarter at Rs.22,451 crore as it did not get any fuel subsidy from the government, received Rs.16,094 crore compensation for the first-half a couple of days ago to enable the company to make profit in the second quarter. “The compensation we received is short of Rs.29,729 crore that was needed to bridge the gap between retail price and cost,’’ IOC Chairman R. S. Butola told reporters here.
After accounting for assistance from upstream firms such as ONGC, there was still an unmet revenue loss of Rs.13,635.16 crore, he said. For the first-half (April-September) of the current fiscal, it has reported a net loss of Rs.12,839.60 crore.
Mr. Butola said the companies at present incur Rs.9.84 per litre loss on diesel, Rs.31.30 a litre in kerosene and Rs.478.50 per 14.2 kg LPG cylinder.
“At current prices, IOC will end the fiscal with an under-recovery of Rs.86,357 crore. Industry will have an under-recovery of Rs.161,000 crore,” he added.
“If the cash subsidy we received is prorated, the loss in the first quarter would have come down to Rs.13,504 crore. Similarly, the July-September quarter profit should have been only Rs.664 crore.
If all the under-recovery was met by the government, IOC would have posted a net loss of Rs.4,966 crore in the first quarter and Rs.5,761 crore net profit in the second quarter.