HPCL (Hindustan Petroleum Corporation Limited), an Indian oil & gas marketing company 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% 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.
“Financial Year 2019-20, especially the last quarter has seen unprecedented event like the outbreak of Covid-19 pandemic leading to nationwide lockdowns and demand contraction on the back of generally sluggish global economic activities,” HPCL said in a release.
“This coupled with inability of oil producing countries to reach a consensus to rebalance the supply demand situation lead to unprecedented volatility in crude oil and product prices, and also in exchange rates,” it added.
Net sales declined by 2.2% 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.
During the quarter, HPCL recorded domestic sales volume of 9.25 MMT against 10.03 MMT for 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.
The company’s net profit dropped by 61% 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.
The company has reported net sales of Rs 289,423.67 crores ($38.2 billion) during the full-year period ended March 31, 2020, a decline of 3.1% as compared to Rs 298,675.40 crores ($39.4 billion) during the full-year period ended March 31, 2019.
The company has reported EPS of Rs 17.32 ($0.23) for the full-year period ended March 31, 2020 as compared to Rs 43.91 ($0.58) for the full-year period ended March 31, 2019.