Indian Oil reports year-on-year Q2 turnaround

The country's largest oil marketing company Indian Oil Corp (IOC) Friday reported a net profit of Rs.9,611.35 crore in the quarter ended Sep 30 compared with its worst-ever net loss of Rs.7,485.55 crore in the like quarter of 2011.

The company's total income rose 30.31 percent year-on-year to Rs.106,848.25 crore in the second quarter of the current fiscal.

IOC said the petroleum ministry has approved a discount of  Rs.16,184.91 crore in the past quarter towards part of the under-recovery on the company's sales of high-speed diesel, kerosene and LPG, compared with a discount of Rs.11,853.23 crore in the like quarter of 2011 on crude oil purchased from state-run oil explorers such as ONGC.

IOC said it accounted for budgetary support of Rs.16,093.97 crore for the quarter ended Sep 30 towards  under-recovery on sales. Budgetary support was Rs.8,200.85 crore in the quarter September 2011.

Owing to retail selling prices not being revised in line  with increased international prices, the company suffered net under-realisation of Rs.13,635.16 crore in the quarter ending September 2012 on fuel sales compared with Rs.15,509.25 crore in Q2 September 2011.

IOC reported a net foreign exchange loss of Rs.898.02 crore in the last quarter compared with Rs.2,309.59 crore in Q2 September 2011.

IOC stock was down 0.26 percent to Rs.264 on the Bombay Stock Exchange after the announcement of results.