NEW DELHI: State-owned Indian Oil Corporation (IOC) on Saturday reported a net loss of Rs 272.35 crore for the second quarter of financial year 2022-23 (Q2FY23) despite booking over Rs 10,800 crore of LPG subsidy it received from the government after the quarter ended. The company reported a net profit of Rs 6,360.05 crore for Q2FY22, according to a company’s filing with the stock exchanges.
The decline comes on the back of a Rs 1,992.53 crore loss incurred in the previous April-June quarter. This is the first time that IOC has booked losses in two straight quarters - all because it sold petrol, diesel and cooking gas (LPG) at rates below cost.
The loss in Q2FY23 was despite accounting for Rs 10,801 crore of one-time grant that the government had announced on October 12. The government on October 12 extended a one-time grant of Rs 22,000 crore to three state-owned fuel retailers to cover the losses they incurred on selling domestic cooking gas LPG below cost in two years starting June 2020.
An official explained that though the subsidy was provided by the government after the quarter had ended but it was for the period up to September 2022 and so it was considered following the principle of ‘accrual-based’ accounting.