News Release Details

IndianOil Suffers Rs. 7,047 crore Loss for Q2 <br/>Gross Turnover up by 46.5% to Rs. 79,528 crore
New Delhi   31-Oct-2008
Indian Oil Corporation Ltd. (IOC) has registered a Loss of Rs. 7,047 crore for the second quarter of the current financial year ended September 2008 as compared to Profit of Rs. 3,818 crore for the same quarter of the previous year. However, the Corporation’s Gross Turnover for the same period moved up by 46.5%, to Rs. 79,528 crore from Rs. 54,292 crore. The throughput of its refineries and pipelines network for the second quarter at 12.01 million tonnes and 14.27 million tonnes respectively was also higher than that of the corresponding quarter of the previous year. The unaudited financial results of the Corporation were taken on record at the meeting of the Board of Directors here today. For the first six months ended Sept. 2008, the Corporation’s net loss was Rs. 6,632 crore as against Profit of Rs. 5,286 crore for the same period. According to IndianOil Chairman, Shri Sarthak Behuria, the under-recovery on account of non-realisation of market-related prices for petrol, diesel, PDS kerosene and LPG (Domestic) during the first six months of the current fiscal was Rs. 12,271 crore (after considering approval received from the Government of India for issuance of Special Oil Bonds of Rs. 25,082 crore) as compared to Rs. 3,508 crore in the corresponding period of the previous year. The Corporation’s Gross Turnover moved up by 42.5%, to Rs. 160,263 crore during the first half of 2008-09 from Rs. 112,497 crore for the corresponding period of the previous year. Increase in net under realisation along with foreign exchange loss due to appreciation in US Dollar vis-à-vis Indian Rupee, inventory valuation losses due to falling crude oil prices and increase in Interest expenditure due to increase in rate of interest as well as increase in borrowings are the main reasons for such huge loss during the quarter. Shri Behuria added that the Corporation sold 32.43 million tonnes of products, including exports, during the first half of 2008-09. The throughput of its refineries and pipelines network was 24.56 million tonnes and 29.38 million tonnes respectively for the same period.