HPCL posts loss before tax of Rs 2,653 crore for Q4 on inventory woes

Hindustan Petroleum Corporation (HPCL) posted a consolidated loss before tax of Rs 2,653 crore for the fourth quarter of financial year 2019-20 compared to Rs 5,067 crore profit (before tax) during the same period in the previous year. This is because of inventory losses and exchange rate fluctuations.

HPCL has written down Rs 1,002.93 crore because of inventory losses due to “drastic fall in oil prices accompanied with reduced movement in inventory.” The net impact amounts to Rs 750.51 crore for the quarter ended March 31, 2020.

For the period January-March 2020, the company registered gross sales of Rs 71,367 crore, down 2 per cent compared to Rs 72,925 crore for the same time in 2018-19. Sales were lower mainly on account of a sharp fall in crude prices during the March quarter.