India: HPCL Losses Rise Over 900%
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Thursday, 31 July 2008 |
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HPCL, India's second largest oil company, said its net loss in the June
quarter plunged to Rs.888.12 crore from Rs.86.93 crore (year-on-year
decline of 921.64 percent).
HPCL reported its gross sales in Q1 of FY08 stood at Rs.31,255.94 crore as against Rs.23,581.17 crore posted in Q1 of FY07 (YoY rise of 32.54 percent). Net sales (income from operations) stood at Rs.34,749.32 as against Rs.21,881.70 crore (YoY rise of 58.80 percent) while total income rose to Rs.34,917.20 crore from Rs.22,216.13 crore (YoY rise of 57.17 percent). During the quarter, its total expenditure rose from Rs.22,189.39 crore to Rs.35,396.95 crore (YoY rise of 59.52 percent).
According to the company, its financial results for the quarter have been adversely affected due to high crude and product prices, which could not be fully passed on to the consumers. In India, prices of fuel products are controlled by the government and state-run oil marketing firms sell them at mandated discounts. From time to time, these companies also negotiate with banks to increase their borrowing limits to curb their losses but these are not long-term solutions, market analysts say.
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