Savita Posts Lower Profit

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Savita Posts Lower Profit

Mumbai-based Savita Oil – a supplier of transformer oils, white oils, lubricants and other products – reported lower net profit and total income for the quarter ending March 31.

The company posted net profit of Rs 20.6 crore (Rs 206 million or U.S. $2.7 million) for the quarter ending March 31, down 38 percent from Rs 33.4 crore in the same quarter in 2019. For its full fiscal year, which also ended March 31, the company posted net profit of Rs 95.6 crore, down 16 percent from Rs 114.3 crore.

Total income for Savita’s quarter reached Rs 453.3 crore, down 19 percent from Rs 557.5 crore. For the full fiscal year, the company reported total income of Rs 2,057.8 crore, down 10 percent from Rs 2,280.9 crore.

The company’s revenue from petroleum products declined to Rs 446.9 crore in the quarter, down 19 percent from Rs 550.3 crore. For the full fiscal year, revenue from petroleum products decreased to Rs 2,012.6 crore, down 10 percent from 2,236.2 crore in the prior year.

Savita noted in its financial statement that the COVID-19 pandemic significantly affected economic activities worldwide, including India overall and the company’s operations and results.

“The Indian economy witnessed a sudden and drastic slow-down from the last week of March 2020, when the central and state governments announced lockdown to contain the spread of the deadly virus,” the company stated. Savita added that it took necessary measures to comply with government directives, including temporary shut-down of its manufacturing facilities, offices and depots. The company has since resumed most of its operations in a phased manner, through the time of the results announcement.

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