Lost Rs 350 cr due to inventory loss: Bongaigaon Refinery

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Lost Rs 350 cr due to inventory loss: Bongaigaon Refinery

TV John, Director - Finance, Bongaigaon Refinery, said the company lost Rs 350 crore due to inventory loss. His outlook, going forward: “The short-term predictions are difficult because it is subject to operations by various international agencies like OPEC and other developments.”

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Bongaigaon Refineries and Petrochemicals has announced its third quarter results. The company's standalone net sales were at Rs 1,112.07 crore versus Rs 1,462.22 crore on YoY basis. The company's standalone net loss was at Rs 224.09 crore versus net profit of Rs 84.90 crore on YoY basis.

TV John, Director - Finance, Bongaigaon Refinery, said the company lost Rs 350 crore due to inventory loss. "GRM from April to December was +5.3 but during the last quarter it was 5.4," he said. His outlook, going forward: "The short-term predictions are very difficult because it is subject to operations by various international agencies like OPEC and other developments that are taking place in the world." He, however, said crude prices, in the long term, will be at a higher level than what they are currently.

Here is a verbatim transcript of TV John's exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: If you could just walk us through your gross refining margins (GRMs) this quarter and the inventory loss that you may have clocked?

A: We have lost about Rs 350 crore due to inventory loss during these nine months and that has happened in the last quarter. So, GRM from April to December was +5.3 but during the last quarter it was 5.4.

Q: What is the kind of macro environment that you are dealing with? Are you witnessing a slowdown in terms of petchem demands because we are seeing huge amount of capacity additions all across Asia as well? What is the demand supply situation that you configure for the times ahead?

A: We are only a refinery, so we are not very much concerned about the marketing aspects but demand is constantly on rise. So, I don't see any fall in the demand coming up because with the growth of the various economies, it is highly unlikely that the demand for petroleum products will come down.

Q: We have seen how the raw material costs have gone down by almost 28%. What is your outlook going forward?

A: The short-term predictions are very difficult because it is subject to operations by various international agencies like OPEC and other developments that are taking place in the world. But in the long term, crude prices are likely to be at a higher level than what they are today.