At the end of the fiscal year, IOC had the highest debt at Rs 92,712 crore while BPCL’s debt is Rs 42,915 crore and that of HPCL is Rs 26,036 crore.
The combined debt of three state-run oil marketing companies (OMCs) has touched a five-year high of Rs 1.62 trillion as of March 2019, according to a Business Standard report.
The combined debt of Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) rose 30 percent from Rs 1.25 trillion last year, the report said, citing data from Capitaline.
At the end of the fiscal year, IOC had the highest debt at Rs 92,712 crore while BPCL’s debt is Rs 42,915 crore and HPCL’s Rs 26,036 crore.
Moneycontrol could not independently verify the story.
The spike in the companies’ debt was mostly due to higher capital expenditure, delays in payment of subsidy payment for liquefied petroleum gas (LPG) and kerosene from the government, the report said.
This number is still lower than the Rs 1.76 trillion total debt at the end of FY14 when oil prices had hit $100 per barrel.
“IOC has a larger capital expenditure plan compared to BPCL and HPCL. What works for HPCL is its larger marketing operations, which bring in stronger cash flows,” a senior oil and as analyst told the paper.
In the March quarter, the debt of the three OMCs increased by Rs 5,000-10,000 crore each due to delays in payments of subsidies, the report said.For IOC, borrowings increased due to higher dividend pay-out to the government, subsidy arrears and entry tax for the Mathura refinery, the report added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.