HPCL shares tumble nearly 5% after Q3 net drops 63% on inventory loss

Shares of Hindustan Petroleum Corporation Ltd (HPCL) on Tuesday fell nearly 5 per cent after the firm reported a 63 per cent decline in third quarter net profit.

The stock declined 4.77 per cent to Rs 299 on BSE.

On NSE, it tumbled 4.83 per cent to Rs 298.90.

The company on Monday reported a 63 per cent decline in third quarter net profit as it booked inventory losses.

Net profit in October-December stood at Rs 869 crore, as compared with Rs 2,355 crore for the same period last year.

"The profit was affected primarily due to the price fluctuations in Q3 2021 leading to inventory losses compared to inventory gains in the corresponding period last year," HPCL Chairman and Managing Director M K Surana told reporters.

While refusing to give inventory loss numbers, he said the loss was on the marketing side -- meaning it sold fuel at less than its cost.