HPCL posts net loss of Rs 15.73 cr

Large under-recoveries and high crude oil prices have made state-run Hindustan Petroleum Corporation (HPCL) post a net loss of Rs 15.7 crore for the quarter ended December 2007 against a net profit of Rs 407 crore for corresponding last quarter.

"Financial result for the quarter has been affected due to high crude and product prices, which could not be fully passed on to the consumers," said a company official.

The company recorded an increase of Rs 27,381 crore in total income for December 2007 quarter from Rs 22,396 crore for the corresponding previous quarter.

A financial official from the company said,"We have informed the government about the current situation of large under-recoveries and the government has assured us it will look into the matter. We expect the next quarter to be better."

Net sales during the period stood at Rs 27,117 crore compared with Rs 22,150 crore in December 2006 quarter. Operating profit declined 6.36 per cent to Rs 412 crore during the quarter as compared to Rs 440 crore in December 2006.