New Delhi, Aug. 12: Indian Oil Corporation (IOC) has posted a profit of Rs 2,523 crore in the first quarter of this fiscal against a net loss of Rs 3,093 crore during the same period last year.
Besides the government subsidy, the PSU refiner’s performance was boosted by lower interest costs and exchange rate variations.
“The net profit was mainly because of a foreign exchange gain of Rs 128 crore in first quarter this fiscal compared with a foreign exchange loss of Rs 4,024 crore last year,” chairman B. Ashok said.
It also gained Rs 745 crore from the RBI’s currency swap window, Rs 348 crore from writeback on trust receivables and Rs 556 crore on savings in interest outgo on borrowing, he said. These gains were partially offset by the provision of Rs 1,028 crore for tax.
IOC lost Rs 15,328.34 crore on selling diesel, domestic LPG and kerosene at government-controlled rates in April-June this year. The government compensated around 40 per cent of this through a cash subsidy of Rs 6,076 crore. It got another Rs 8,107.21 crore from upstream PSUs such as ONGC.
In spite of the timely payment of subsidy and cash assistance from upstream companies, IOC had to absorb a loss of Rs 1,145 crore, Ashok said.
The timely release of compensation led to a reduction in borrowing to Rs 68,953 crore in the June quarter against Rs 86,263 crore as on March 31, which led to a saving of Rs 556 crore in interest cost.
Net sales jumped 13 per cent to Rs 124,666 crore from Rs 110,233 crore in the first quarter of the previous fiscal.
Income from operations was Rs 1,24,957 crore against Rs 1,10,467 crore a year ago.
On the results, Ashok said, “Indian Oil sold 19.772 million tonnes of products, including exports, during April-June 2014.
“Our refining throughput for the first quarter of 2014-15 was 12.866 million tonnes and the throughput of the corporation’s countrywide pipelines network was 18.890 million tonnes during the same period.”
Gross refining margin was $2.25 per barrel compared with $2.66 a barrel last year.