Indian Oil records sharp drop in Q1 losses

Indian Oil Corporation (IOC), the largest state-run oil marketer, has reported a sharp drop in its net losses for the first quarter ended June 30, 2013.

The PSU posted a loss of Rs 3,093 crore in the April-June quarter against a net loss of Rs 22,451 crore in the corresponding quarter of 2012-13.

IOC attributed the lower losses to the compensation it received from the government for selling fuel below market prices.

Announcing the results, IOC chairman R.S. Butola said under-recoveries, or losses, have declined to Rs 1,212 crore as on June 30, against Rs 17,485 crore on the same date previous year.

IOC reported an average gross refining margin of $1.67 per barrel for the quarter in question, against $4.81 per barrel for the period April-June 2012.

Butola said net losses in the quarter were due to under-recoveries yet to be compensated, in addition to an exchange rate loss of Rs 840 crore, and provisioning of Rs 400 crore for employee arrears.