Hi-Tech Lubricants Posted Loss, Sales Drop


Hi-Tech Lubricants Posted Loss, Sales Drop

Hi-Tech Lubricants’ lubricants segment recorded a net loss and a 26% drop in sales for the fiscal year ending June 30, citing sluggishness in Pakistan’s automobile sector and inflation.

For the fiscal year, Lahore-based Hi-Tech’s lubricants segment reported an Rs 136.7 million net loss (U.S. $482,000) for the fiscal year, a steep decline from an Rs 866.3 million net profit for the prior fiscal year. Hi-Tech noted in its annual report that a reduction in sales revenue led to a negative bottom line performance within the segment. Another factor was a 129% surge in finance costs to Rs 536.8 million, compared to Rs 234.4 million.

The segment’s profit from operations plummeted 64% to Rs 400.1 million, from Rs 1.1 billion.

Lubricants segment revenue fell 26% to Rs 7.4 billion, compared to Rs 9.8 billion, accounting for 48% of the company’s sales for the fiscal year.

Overall, Hi-Tech’s reported consolidated net loss of Rs 247 million for the fiscal year ended June 30, falling from an Rs 617.4 million net profit in the previous fiscal year. Profit from operations plunged 73% to Rs 399.5 million, compared to Rs 1.5 billion.

Net sales for the company as a whole declined 12% to Rs 15.6 billion.

In citing the impacts of sluggishness observed into the automobile sector during the fiscal year period, CEO Hassan Tahir noted the adverse trend was exacerbated by various eternal factors, “including persistent inflationary pressures, a diminishing purchasing power among consumers and the broader economic downtown in Pakistan.” In addition, he said, the devaluation of the national currency, the rupee, added to import costs, further contributing to prevailing inflation.

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