State-run oil retailer Indian Oil Corporation (IOC) has reported a net loss of Rs 22,451 crore in the quarter ended June 2012 as against loss of Rs 3,719 crore in a year ago period.
Indian Oil Corp has reported a Year-on-Year multi-fold jump in its June quarter loss on account of higher under-recoveries on sale of petroleum products at subsidized rated. The net under-recovery stood at RS 174.85 billion
The oil marketing reported reported a Rs 22,451 crore loss as against Rs 3,719 crore,
Net sales, however grew 5% to Rs 96, 608 crore,YoY. Shares of the company fell 1.5% to close at Rs 252.15 prior to the earnings announcement.
This loss is highest ever reported by the company as the gross refining margins were also down during the quarter. Also, the company which is entitled to subsidy,did not receive any cash compensation from the government for selling fuel products at subsidised rates.