HPCL (Hindustan Petroleum Corporation Limited) has reported its financial results for the period ended March 31, 2020. For the quarter, the company has posted net loss of Rs (27.63) crores (-$3.6 million), a 101 percent decline as against net profit of Rs 3340.03 crores ($440.9 million) during the prior-year quarter.
The loss in the quarter was attributed to the surplus inventories and contraction in demand due to the pandemic lockdowns. Net sales declined by 2.2 percent to Rs 72,059.48 crores ($9.51 billion) for the quarter as compared to Rs 73,705.56 crores ($9.72 billion) during the prior-year quarter.
Hit by the reduction in transportation fuel demand for fuel in the month of March due to nationwide lockdown to contain the spread of Covid-19, HPCL during the quarter recorded domestic sales volume of 9.25 MMT against 10.03 MMT for the prior-year quarter.
The company’s net profit dropped by 61 percent to Rs 2638.73 crores ($348.3 million) for the full-year period ended March 31, 2020 as against Rs 6690.63 crores ($883.1 million) for the full-year period ended March 31, 2019. During the full-year period ended March 31, 2020, the company has reported net sales of Rs 289,423.67 crores ($38.2 billion), a decline of 3.1 percent as compared to Rs 298,675.40 crores ($39.4 billion) during the full-year period ended March 31, 2019.
