IndianOil reports Rs 17,318 cr loss in Q4FY20 on inventory, demand issues

The country’s largest fuel retailer Indian Oil Corporation on Wednesday reported a loss of Rs 17,318 crore for the March quarter (Q4) of financial year 2019-20 (FY20) on the back of inventory losses and low fuel demand because of the global Covid-19-induced slowdown. It had recorded a profit before tax of Rs 9,020 crore in the corresponding quarter in FY19.

The company said there was a significant fall in oil prices because of Covid-19 and changes in the oil market scenario, and this led to a write-down in valuation of inventories below cost of Rs 6,855.35 crore for the period. After taking a longer time, the write-down in valuation of inventories increased to Rs 11,304.64 crore over one year. In Q4FY20 foreign exchange loss stood at Rs 4,145.53 crore, against Rs 1,740.94 crore a year ago.