HPCL reports Q1 net loss of Rs 9,249 crore

The company records second biggest loss posted by by a company in India

State-owned Hindustan Petroleum Corp Ltd (HPCL), the nation's third largest fuel retailer, today reported a net loss of Rs 9,249 crore as government failed to compensate it for selling fuel below cost.

HPCL's net loss of Rs 9,248.80 crore in April-June, as compared to a net loss of Rs 3,080.26 crore a year ago, was the second biggest loss posted by a company in India.

State refiner Indian Oil Corp (IOC) today reported the nation's biggest quarterly net loss of Rs 22,451 crore.

"The loss during the quarter is primarily on account of absorption of under-recoveries on sale of sensitive petroleum products amounting to Rs 7,321 crore," the company said in a press statement here.

The interest cost for the period was also higher at Rs 549 crore, as compared to Rs 264 crore during the same period of previous year.

During the quarter it also had inventory loss, because of a decline in international prices of crude and petroleum products.

HPCL said gross sales were up 5.7% to Rs 46,406 crore in the first quarter this fiscal on back of increased domestic sales.

"The domestic sales of petroleum products increased to 7.44 million tonnes registering a growth of above 6.9% over the first quarter of previous year, as against the industry average growth of 4.2%," it said.

Diesel sales was up 12.2% and that of LPG 8.2%.

HPCL refineries at Mumbai and Visakh processed 3.58 million tonnes of crude during April–June as against 3.97 million tonnes processed in the year ago period.

"The thruput was lower because of (maintenance) shutdown at both the refineries," it said.