The losses have narrowed from ₹1,992 crore in the April-June quarter mainly due to the general decline in crude prices in the September quarter.
Revenue from operations rose 34% from a year earlier to ₹2,28,359 crore.
The average gross refining margin (GRM) for six months through September was $25.49 per barrel compared with $6.57 per barrel in the year-ago period. “However, the suppressed marketing margins of certain petroleum products have offset the benefit of the increase in GRM,”
said in its earnings statement.
The company also incurred losses by selling cooking gas below market rates this fiscal year as well as in 2021-22. To compensate for these losses, the government has approved a one-time grant of ₹10,801 crore, IOC said. The grant has been recorded under revenue from operations in the financial results for this year, it added.
Losses have increased the debt level at the firm. The debt-equity ratio has risen to 1.16 from 0.85 at the end of the first quarter and 0.66 at the end of the year-ago quarter.