HPCL suffers Rs 9,249 cr loss in Q1

State-owned Hindustan Petroleum Corp Ltd (HPCL ), the nation's third largest fuel retailer, on Thursday reported a net loss of Rs 9,249 crore as government failed to compensate it for selling fuel below cost.

HPCL's net loss of Rs 9,248.80 crore in April-June, as compared to a net loss of Rs 3,080.26 crore a year ago, was the second biggest loss posted by a company in India.

State refiner Indian Oil Corp (IOC) on Thursday the nation's biggest quarterly net loss of Rs 22,451 crore.

"The loss during the quarter is primarily on account of absorption of under-recoveries on sale of sensitive petroleum products amounting to Rs 7,321 crore," the company said in a press statement here.

The interest cost for the period was also higher at Rs 549 crore, as compared to Rs 264 crore during the same period of previous year.

During the quarter it also had inventory loss, because of a decline in international prices of crude and petroleum products.

HPCL said gross sales were up 5.7 per cent to Rs 46,406 crore in the first quarter this fiscal on back of increased domestic sales.

"The domestic sales of petroleum products increased to 7.44 million tonnes registering a growth of above 6.9 per cent over the first quarter of previous year, as against the industry average growth of 4.2 per cent," it said.

Diesel sales were up 12.2 per cent and that of LPG 8.2 per cent.