IOC first quarter profits dip by 71%
Indian Oil Corporation ltd’s(IOC) reported the company results reporting a 71 per cent decline in net profit for the first quarter of the current financial year.
Huge under-recoveries suffered due to sale of auto and cooking fuels below cost price (revenue loss of Rs 410 crore a day) was a dominant factor in bringing down the company’s net profit to Rs 415.13 crore (Rs 1,468.41 crore). However, net sales increased to Rs 74,872.60 crore (Rs 52,861.96 crore).
The Chairman of IOC, Mr Sarthak Behuria, quoted “the under-recovery on account of non-realisation of market-related prices for petrol, diesel, kerosene, and domestic LPG for the quarter was Rs 7,320.57 crore (after considering special oil bonds of Rs 13,527 crore).” Diesel consumption has seen a growth of 18-20 per cent. Currently, the company’s borrowings have touched Rs 42,500 crore, are likely to reach Rs 58,000 crore by September-end.