IOC posts Q4 net loss of Rs 5,185 cr on inventory losses, lower refining margins
Indian Oil Corporation (IOC) on Wednesday reported a net loss of Rs 5,185 crore in the quarter ended March 31, 2020, down from a net profit of Rs 6,099 crore in the year-ago period, due to large inventory losses and lower refining margins. Net profit for FY20 ended at Rs 1,313 crore, compared to a net profit of Rs 16,894 crore in FY19.
The state-owned oil marketing company (OMC) recorded an inventory loss of Rs 14,692 crore in Q4 FY20, as against inventory gains of Rs 1,787 crore in the corresponding period in FY19. IOC had to write-down inventories as a result of a sharp decline in the price of crude oil precipitated by a price was between oil-producing countries and reduced demand due to the COVID-19 pandemic.
