IOC net up on forex gains

Total income rises 13% to Rs 1,24,956 cr

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Indian Oil Corporation (IOC), India’s largest oil marketing company, has reported a net profit of Rs 2,522.9 crore for the June 2014 quarter against a net loss of Rs 3,093.2 crore in the year-ago quarter.

“The increase in net profit during the first quarter is mainly attributable to foreign exchange gain of Rs 128 crore in the quarter against a loss of Rs 4,024 crore in the corresponding quarter,” said IOC Chairman B Ashok. “Also, we gained Rs 745 crore from RBI (Reserve Bank of India) currency swap window, Rs 348 crore from writeback on trust receivables and Rs 556 crore on savings in interest expenses,” he added.

The Reserve Bank of India (RBI) had in August last year announced a foreign exchange swap window for public-sector oil companies for meeting daily dollar requirements. Total income of the company during the quarter under review rose 13 per cent to Rs 1,24,956 crore against Rs 1,10,466 crore in the same period last year.

Ashok also said the finance cost during the June 2014 quarter dropped to Rs 914 crore compared to Rs 1,470 crore in the year-ago period as overall borrowings came down.

"Ourborrowings have come down from 86,000 crore on March 31, 2014 to Rs 64,951crore at the end of June leading to savings on interest expense," he said.

IOC received discountsof Rs 8,107 crore on crude oil and petroleum products purchase from upstreamcompanies towards under-recovery on sale of regulated products - Diesel,Kerosene and Liquefied Petroleum Gas (LPG) - during the first quarter.

Also,the company accounted for Rs 6,075 crore as government subsidy support for theunder-recoveries.

"Owing tonon-revision of retail selling prices in line with global prices and pending crystallization of compensation from the government the company has sufferednet under-realization of Rs 1,145 crore in the Apr-June quarter on sale ofDiesel, Kerosene and LPG," IOC said in a statement.

Under-recoveries in thesame quarter last year stood at Rs 1,211 crore. Ashok also informedthe fuel retailer is mulling total capital expenditure of Rs 1,500 crore in thecurrent financial year, as compared to last fiscal's Rs 1,600 crore, onprocurement of LPG cylinders and expansion of retail outlets.

IOC currentlyoperates over 24,000 outlets across the country and plans to add another 2,000 outlets this fiscal.