During Apr-Jun 2013-14, the net loss of Indian Oil Corporation (IOC) declined to Rs 3,093 crore from Rs 22,451 crore in the corresponding quarter previous year.
The company managed to reduce its loss as it received compensation for selling fuel below market cost from the government.
As on June 30, the company posted Rs 1,212 crore decline in under-recovery from Rs 17,485 crore on the same date of the previous year.
The company lost Rs 13,625 crore on selling diesel, domestic cooking gas and kerosene at a government-controlled price during Apr-Jun 2013.
While upstream companies (ONGC, OIL, GAIL) paid Rs 8,152 crore, the government assured to pay cash compensation of Rs 4,261 crore. Post these compensations, it is left with uncovered losses of Rs 1,212 crore.
When asked if the company will have to absorb these losses, Butola said IOC is seeking additional compensation from the government.
The company also suffered loss from adverse movement in exchange rate provisioning for employee arrears during the quarter. The exchange rate loss is pegged at Rs 840 crore and provisioning for arrears at Rs 400 crore.