Categories: Business

Tata Motors losses by Rs 8,444 crore, Iocl net profit down by 47 percent

Photo: ECONOMICTIMES

tata motors q1 result

new Delhi. Outraged by the outbreak of the Corona virus pandemic, Tata Motors reported on Friday that its cumulative net loss during the quarter ended 30 June 2020 increased to Rs 8,443.98 crore. The company reported a net loss of Rs 3,679.66 crore during the same quarter a year ago. The company's total operating income during the period under review stood at Rs 31,983.06 crore as against Rs 61,466.99 crore in the corresponding period of the previous fiscal.

The company said that its net loss on a standalone basis during the June 2020 quarter stood at Rs 2,154.24 crore, compared to Rs 147.45 crore in the June quarter a year ago. The company said that on a standalone basis, its operating income stood at Rs 2,634.14 crore during the quarter, compared to Rs 13,250.19 crore during the April-June 2019 quarter. Tata Motors CEO and MD Gunter Buschek said the Kovid-19 epidemic had a profound impact on the auto industry in the first quarter of the current financial year. In mid-May, all plants were limited in operation. We have gradually increased our capacity. During this, health and well-being of all was taken care of at the employees and all levels.

IOCL's first quarter net profit down 47 percent at Rs 1,910.84 crore

Indian Oil Corporation Limited (IOCL), the country's largest petroleum company, declined by 47 percent in the first quarter ended June in the current financial year. The refining margin has also come down, along with the reduction in fuel demand of the company due to the Kovid-19 epidemic, which has brought down the company's profits. Company Chairman Srikanth Madhav Vaidya said that its single net profit during the quarter declined by 46.8 per cent to Rs 1,910.84 crore, or Rs 2.08 per share. Which was Rs 3,596.11 crore i.e. Rs 3.92 per share in the same quarter of the previous financial year.

He said that the loss on the stock held was the main reason for the decline in net profit. He said that the company incurred a loss of Rs 3,196 crore on the stock of goods in the first quarter, compared to a profit of Rs 2,362 crore in the year-ago period. Damage on stockpile occurs when a company buys raw material (crude oil in case of IOCL) at a price and when it prepares the product (petrol, diesel etc. in case of IOC) and brings it to market, Its prices fall. The damage caused by this is called the loss on reserves. Conversely, there is a profit on the stock at the time of purchase and product sale at a lower price.

Vaidya said the average price of crude oil in the first quarter of the current financial year was 29.6 barrels per dollar. It was $ 68.9 a barrel in the same quarter last year and $ 50.1 a barrel in the March quarter. He said that the corona virus epidemic affected demand and the decontamination plants failed to function at full capacity. He said that the epidemic is still spreading, so we are not going to return to normalcy in the near future. Most of the time in the first quarter was spent in lockdown due to the corona virus. The movement of vehicles was controlled during this period. This brought down IOC's fuel sales by 29 percent to 15.2 million tonnes during the quarter.

During the quarter, the company's refineries processed 25 percent less i.e. 12.9 million tonnes of crude oil. During the quarter, there was a loss of $ 1.98 for every one barrel of crude oil processed. At the same time, it achieved gross refining margin of $ 4.69 per barrel in the first quarter in 2019-20. Vaidya said that during the quarter, demand for petrol fell by 36 per cent to 2 million tonnes. Similarly, diesel sales fell 35 percent to 6.5 million tonnes. The demand for aviation fuel ATF registered a sharp decline of 79 per cent to 2.4 lakh tonnes.

This post was published on August 1, 2020 1:16 am

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