Indian Oil Corporation on Wednesday reported a consolidated net loss of Rs 7,782 crore for the March quarter. The company marked Rs 11,304.64 crore as "exceptional item" or one-time loss. In the previous quarter, the state-owned oil major had posted Rs 6,004.88 crore net profit.

The company's revenue declined by 3.35 per cent year-on-year during the third quarter to Rs 1,42,371.85 crore.

Average gross refining margin for the period April-March 2020 financial year is $0.08 per bbl compared to $5.41 per bbl a year earlier. 

"The holding Company is consistently valuing its inventories at Cost or Net Realisable Value (NRV), whichever is lower. For this purpose, NRV is derived based on the actual realisation in the specified subsequent period as per regular practice," the company said.

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Indian Oil in a stock exchange filing said due to COVID-19 and changes in oil market scenario, there was a significant fall in oil prices, which led to writing down in valuation of inventories below cost for the specified period of Rs 6,855.35 crore.

IOC said that on account of the unprecedented situation of lockdown from March 25, precipitated by the COVID-19 pandemic outbreak and consequent decline in demand for petroleum products, as an onetime measure, a longer period is considered for better estimation of Net Realisable Value.

"As a result of considering a longer period, the write-down in the valuation of inventories increased to Rs 11,304.64 crore. Considering the nature and size, the total write-down in the valuation of inventories of Rs 11,304.64 crore is treated as an exceptional item in the statement of profit and loss account in the current year," the company said.

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