Profits Up at Castrol India, Gulf, GP


Profits Up at Castrol India, Gulf, GP

Crude oil price volatility, inflation and global uncertainties were among the factors cited by India lubricant companies for the quarter ended Sept. 30, as some – including Castrol India and Gulf Oil Lubricants India Ltd. – navigated the choppy market waters more successfully than others.

Other companies weathering the storm with higher profits for the quarter included GP Petroleums, Apar Industries and Balmer Lawrie. The quarter was tougher on profits for Savita Oil Technologies, Tide Water Oil, Continental Petroleums and Maximus International.

“Due to the on-going Geo-political crisis in Eastern Europe, there had been a sharp volatility in crude oil prices that has impacted the entire value chain,” Savita Oil Technologies Chairman and Managing Director Gautam Mehra said in its earnings release. “We have also witnessed an increase in base oil prices, which is our key raw material. To counter this, we have effected an increase in our finished goods prices commencing from October 2023.”

Castrol India Managing Director Sandeep Sangwan noted in its earnings report that the end of the third calendar quarter saw hardening crude oil prices, with global uncertainties and inflationary pressures. “The recent conflict in the Middle East has brought more challenges to crude price volatility,” Sangwan added.

Ravi Chawla, managing director and CEO of Gulf Oil Lubricants India, asserted in its earnings release that the recent developments in geo-political situations in The Middle East, along with the ongoing Russia Ukraine war, will continue to require close margin management focus going forward.

Castrol India

Castrol India Ltd. reported net profit of Rs 194 crore (1.9 billion Indian rupees or U.S. $23.3 million), a 4% increase.

Sales revenue from operations rose 6% to Rs 1,183 crore.

Managing Director Sangwan said the company will continue to focus on strategic expansion in aftercare, electric vehicles and its industry partnerships for the service and maintenance of


Gulf Oil Lubricants India Ltd.

Gulf Oil Lubricants India Ltd., a Hinduja Group company, reported standalone net profit of 73.6 crore, a 41% increase.

Sales revenue from operations rose 12% to Rs 802.3 crore, from Rs 719.5 crore.

The company noted that in a seasonally subdued quarter due to monsoons, original equipment manufacturer franchise workshops, business-to-business and infrastructure segments clocked double digit volume growths. Retail volumes also showed better growth, the company said, with agriculture and motorcycle products coming back stronger. “The quarter witnessed reasonably stable input cost, which helped garner better material margins and better product mix across segments,” Gulf Oil Lubricants India stated in its news release.

“Our strategy to continue to focus on distribution growth in retail will augur well for the segment over coming quarters/years,” Managing Director and CEO Chawla said in its earnings release.

Savita Oil Technologies

Savita Oil Technologies – supplier of transformer oils, white oils, lubricants and other products – reported a 32% drop in net profit to Rs 47.6 crore, from Rs 69.8 crore.

Operating profit for its petroleum products segment plummeted 47% to Rs 55.3 crore, compared to Rs 92.8 crore.

Sales revenue for the petroleum products segment rose 3% to Rs 877.1 crore.

Chairman and Managing Director Mehra noted the 3% topline growth came on the back of a steady product mix.

GP Petroleums

GP Petroleums Ltd. reported that its net profit for the quarter jumped 58% to Rs 9.5 crore, compared to RS 6 crore.

The improved profit came despite a 21% decline in sales revenue from operations to 162 crore, from Rs 204.3 crore.

GP Petroleums Executive Director and Chief Financial Officer Arjun Verma noted in its earnings release that the company’s performance showed resilience, with the increase in profit after tax, “a reassuring outcome considering the current economic conditions. This growth was primarily driven by an increase in manufacturing sales volume, rather than relying solely on price hike.

Tide Water Oil

Tide Water Oil’s reported standalone net profit fell 26% to Rs 21 crore, from Rs 16.7 crore.

Sales revenue from operations rose 5% to Rs 381.2 crore. The company manufactures and distributes Veedol-branded lubricants.

Apar Industries

Apar Industries reported standalone net profit of Rs 185.6 crore, a 66% jump from Rs 111.6 crore.

Consolidated sales revenues from the company’s transformer and specialty oil segment increased 2% to Rs 1,198.6 crore.

Balmer Lawrie

Standalone operating profit for Balmer Lawrie’s greases and lubricants segment surged 114% to Rs 25.2 crore, improving from Rs 11.8 crore.

Net sales for the greases and lubricants segment increased 5% to Rs 167.9 crore.

Continental Petroleums

Lubricant and grease seller Continental Petroleums Ltd. reported that its net profit plunged 47% to Rs 26.1 lakhs, compared to Rs 49.1 lakhs.

Sales revenue from operations fell 39% to Rs 12.3 crore, compared to Rs 20.1 crore.

Maximus International

Maximus International reported a 78% plunge in consolidated net profit to Rs 8.5 lakhs, down from Rs 38.7 lakhs. Consolidated sales revenue from operations for the company also plummeted, by 81%, to Rs 1.9 crore, compared to Rs 10.1 crore.

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