IOC posts Rs3, 388 crore loss as refining margin slumps

Indian Oil Corp. Ltd. (IOC) posted a loss of Rs3, 388 crore (US$8.28) for the first quarter of the current fiscal year ended June 2010, as compared to a profit of Rs3, 683 crore (US$14.57) year-on-year. The loss was mainly on account of unmet under recoveries, lower refining margins and foreign exchange variation loss. IOC’s gross turnover for the same period rose 22.72 % to Rs77, 965 crore (US$1,663.07) as compared to Rs63, 530 crore (US$1,355.16) during the previous year. According to IOC Chairman B. M. Bansal, the under recovery on account of non-realization of market-related prices for petrol, diesel fuel, public distribution system (PDS) kerosene and domestic liquefied petroleum gas (LPG) for the quarter was Rs7, 343 crore (US$156.63). (July 25, 2010)