Inventory loss and Covid-induced lockdowns impact the financials
Hindustan Petroleum Corporation Limited (HPCL) has reported a ₹27.63-crore consolidated loss for the fourth quarter of financial year 2019-20. The company had reported a consolidated profit of ₹3,340.03 crore in the same quarter of the previous financial year.
Consolidated total income for the period under review stood at ₹72,059.48 crore (₹73,705.56 crore).
For the full financial year 2019-20, the company reported a consolidated profit of ₹2,638.73 crore, down from ₹6,690.63 crore in the previous fiscal.
The fall in profits and revenue is because of a significant inventory loss suffered by the company due to the unprecedented situations arising out of Covid-19. Inventory loss or gain is a change in the valuation of raw materials and products held by a company.
The company reported an inventory loss of ₹4,253 crore for the financial year 2019-20. Comparably, there was an inventory gain of ₹1,363 crore in the previous fiscal.
During the quarter under review, there was an inventory loss of ₹4,113 crore. HPCL had reported an inventory gain of ₹1,234 crore in the same quarter of the previous fiscal.
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Published on
June 16, 2020
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