Hi-Tech Lubricants Lowers Loss

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Hi-Tech Lubricants Lowers Loss

Pakistani blender Hi-Tech Lubricants Ltd. reported a much smaller net loss for its lubricants segment for the nine months ended March 31, despite a drop in sales revenues.

The company’s lubricants segment posted a Rs 21.5 million net loss (U.S. $77,000) for the first nine months of its fiscal year, improving from a Rs 138.1 million net loss in the same period last year. Segment operating profit in the period jumped 32% to Rs 354.4 million, compared to Rs 268.3 million.

Net sales for the same period decreased 4% to Rs 5.6 billion.

The lubricants segment operations include purchasing, blending, packaging and sale of lubricants, parts and rendering of related services.

Overall, Lahore-based Hi-Tech Lubricants reported consolidated net profit of Pakistani Rs 32.3 million for the quarter ending March 31, an 83% drop from Rs 189.6 million. Net sales for the quarter reached Rs 6.6 billion, a 60% jump from Rs 4.1 billion.

For the nine-month fiscal period ended March 31, the company’s net profit fell further to an Rs 317.6 million net loss, declining from an Rs 179.8 million net loss. On the plus side, operating profit improved by 64% to Rs 423.5 million, compared to Rs 258.6 million. The operating profit improvement emanated from favorable product mix and together control over costs, Hi-Tech Lubricants said in its director’s review future outlook.

Nine-month net sales improved to Rs 16 billion, 39% higher than Rs 11.5 billion. Sales benefitted from strong demand and price management initiatives, the company said.

In its director’s review’s future outlook section, the company noted that Pakistan’s economy is passing through a turbulent inflationary phase. Hi-Tech explained that sharp increases in energy and commodity prices, along with devaluation of the Pakistani rupee, are driving the inflation, a trend that is expected to continue in the foreseeable future. “All of these factors are putting tremendous pressure on the disposable income of consumers and is having an adverse impact on consumption patterns,” the company said.

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