Bharat Petroleum Corp slips into the red with loss of Rs 2,958 crore

Hit by a loss of inventory, state-run Bharat Petroleum Corporation (BPCL) reported a pre-tax loss of Rs 2,958.91 crore for the quarter ended March 31. During the same period last year, the state refiner had reported a profit.

As crude oil prices tanked globally, owing to a slowdown in industrial activity and demand, BPCL was forced to value finished goods inventory and raw materials at below cost.

The company said the impact of this has been reported under exceptional items worth Rs 1,310.35 crore.

In its results statement, BPCL said, “The outbreak of Covid-19 globally and the resultant lockdown in many countries, including from March 25 in India, has had an impact on business. Consequently, lower demand for crude oil and petroleum products has impacted prices and therefore refining margins globally.”