Indian transformer oil supplier Apar Industries reported increases of more than 100% in net profit and a 24% jump in revenues from its transformer and specialty oil segment for the quarter ending June 30, the first quarter of its fiscal year. Higher industrial and automotive lube sales volumes helped boost the segment’s revenue.
The segment had a net profit of Rs 98.4 crore (Rs 984 million or U.S. $12.4 million) for the quarter, a 102% jump from Rs 48.7 crore in the same period last year.
Standalone revenues from Apar’s transformer and specialty oil segment increased 24% to Rs 785.4 crore for the quarter, improving from Rs 631.8 crore.
In the presentation, Apar said its consolidated revenue specifically for lubricants rose 36% to Rs 217 crore for the quarter, driven by strong growth in industrial and automotive volumes.
Its lubricants sales volume increased 26% to 17,618 kiloliters (15,800 metric tons). The company noted that industrial lubricants volume was up 31%, and automotive lubricants volume was up 24% across the board due to the lower base in the same period last year because of COVID disruptions. However, Apar noted, retail volumes are down, and OEMs are affected because it is taking longer to absorb higher lubricant price levels. Looking to the future, the company said in its earnings presentation that it expects a slowdown in volume in the transformer and specialty oil segment, as customers are struggling to pass on price increases.