Indian Oil Corporation (IOC) Reports Standalone Net loss of Rs 272.35 Crore

  • Company reported a net loss of Rs 272.35 crore compared to a profit of Rs 6,360 crore in Q2 2021.
  • The company suffered from under recoveries from domestic LPG sales and other products
  • During the first quarter Company registered a loss of Rs 1,992.53 Crore

Company’s Revenue from operation during Q2 2022 stood at Rs  2,28,359.38 Crore vs RS 1,69, 763.50 Crore in Q2 2021.

For the period April-September 2022, the average Gross Refining Margin (GRM) is $25.49 per barrel (April-September 2021: $6.57 per barrel). The core GRM, or current price GRM, for the period April-September 2022 is $22.19 per bbl after accounting for inventory loss/gain. However, the benefit of increased GRM has been offset by lower marketing margins for certain petroleum products.

In Q2 2022, the company incurred total expenses of Rs 2,30,802 Crore, compared to Rs 1,62,834 Crore in Q2 2021.

The company reported a net loss of Rs 272.35 crore compared to a profit of Rs 6,360 crore in Q2 2021.

In July 2022, the company issued bonus shares in the ratio of one equity share of Rs 10 for every two equity shares of Rs 10 each. The basic EPS for the September quarter was Rs (0.30), compared to Rs 6.93 in the second quarter of 2021.

In the fiscal year 2021-22 and the six months ending September 30, 2022, the company suffered from recoveries from domestic LPG sales. The Government of India recently approved a one-time grant of RS 10,801.00 crore to compensate for under-recoveries.

Indian Oil’s product sales volumes, including exports, were  were22.429 million tonnes in the second quarter of fiscal year 2022-23. During the quarter, refining throughput was  16.093 million tonnes, and the Corporation’s nationwide pipeline network throughput was 23.635 million tonnes.

In the first quarter Company registered a loss of Rs 1,992.53 Crore.  Company is incurring loss due to inability to pass on the rising crude cost on its product to customers. Deficit is mainly on account of lower marketing margin  and higher exchange losses during current period.

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