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State-owned Indian Oil Corp (IOC) on Friday reported an 82.5% drop in net profit for the July- September quarter to Rs. 1,683.92 crore, from Rs. 9,611 crore in the same period a year ago.
The company said forex losses and incomplete receipt of government subsidy for loss on fuel sales led to the drop.
“The decrease in profit is mainly on account of exchange loss of Rs. 2,158 crore in the quarter, as against the exchange gain of Rs. 2,289 crore in the corresponding quarter of the previous year,” IOC chairman RS Butola said.
The company lost Rs. 18,291 crore on selling diesel, cooking gas and kerosene in the second quarter. It got Rs. 8,634.14 crore from upstream firms like ONGC and another Rs. 9,243 crore in cash subsidy from the government.
“At current prices, IOC will end the fiscal will an under-recovery (revenue loss) of Rs. 71,200 crore,” Butola said.
The profits were saved by higher refining margin. IOC earned $7.43 (about Rs. 464) per barrel, against $6.07 per barrel a year ago (Rs. 379 at the current exchange rate).
Butola said for the full fiscal, IOC had a net loss of Rs. 1,409 crore on a turnover of Rs. 220,857 crore, compared to Rs. 12,840 crore on sales of Rs. 202,862 crore in the year-ago period.