Indian Oil Corporation on Wednesday posted a consolidated net loss of Rs 7,782 crore for the quarter ended March 31 on a one-time loss of Rs 11,304.64 crore.
The company had posted a net profit of Rs 6,004.88 crore in the corresponding quarter last year.
On the other hand, the revenue of the company declined 3.35 per cent YoY to Rs 1,42,371.85 crore during the quarter under review.
“The holding company is consistently valuing its inventories at cost or net realizable value (NRV) whichever is lower. For this purpose, NRV is derived based on the actual realisation in the specified subsequent period as per regular practice,”
IOC said in a regulatory filing.
It further added that due to the Covid-19 pandemic and changes in oil market scenarios there was a significant fall in oil prices which led to write-down in valuation of inventories below cost for the specified period of Rs 6,855.35 crore.
However, on account of the unprecedented situation of lockdown from March 25 in the country precipitated by the outbreak of Covid-19 pandemic and consequent significant decline in demand for petroleum products, as a one-time measure, a longer time period is considered for better estimation of NRV.
“As a result of considering a longer time period, the write-down in valuation of inventories increased to Rs 11,304.64 crore,” the oil marketing company said.
Shares of the company settled 2.63 per cent down at Rs 87 after the announcement of
Q4 results, while the benchmark BSE Sensex ended 561 points lower at 34,868.