Pakistans Hi-Tech Lubricants Ltd. reported a 35 percent jump in its first quarter net profit, thanks to higher sales and lower tax expenses, while Savita Oil Technologys petroleum products segment posted a 21 percent jump in profit before taxes and finance costs during its second quarter.
Hi-Techs consolidated net profit for the quarter ending Sept. 30 rose to Rs 133.9 million (U.S. $1.2 million), up from Rs 98.9 million a year ago, the Lahore-based blender said in a regulatory filing.
The distributor of SK Lubricants Zic brand of finished lubricants reported that net sales surged 30 percent to Rs 2 billion. Taxes declined 16 percent to Rs 54.6 million. Total expenses for the company increased 4 percent to Rs 276.3 million.
The shareholders of Hi-Tech recently approved the companys proposal for diversion of unutilized initial public offering funds from HTL Express Service Centers and wholly owned subsidiary Hi-Tech Blending (Private) Ltd. to its initiative of establishing an oil marketing company.
Hi-Tech had raised about Rs 1.8 billion in January 2016 through its stock offering to launch a chain of retail fuel outlets in the domestic market and to install additional filling lines at its Lahore blending plant.
The company noted the effective and timely implementation of its earlier plan had become a big challenge due to expensive lands and properties at key locations in almost all the cities for express service centers. Therefore it now plans to include service centers into its fuel stations.
According to its annual report for fiscal year 2016-2017, the company used Rs 815.2 million of IPO proceeds by June 30 to invest in land and construction and to meet its working capital requirements. The unutilized funds stood at Rs 997.3 million.
Hi-Tech said it decided to shift the funds to the oil marketing project given its successful fulfillment of initial requirements by the Oil and Gas Regulatory Authority for setting up an oil marketing company and given prospects for the business, which Hi-Tech considers to be good. The project aims to set up 360 retail outlets across Punjab, Sindh and Khyber Pakhtunkhwa provinces of Pakistan.
Mumbai-based Savita reported a second quarter profit before taxes and finance costs of Rs 29 crore (Rs 290 million or U.S. $4.5 million), up from Rs 23 crore for the same period of 2016-2017.
Savita, whose two key business segments are petroleum products and renewable energy, reported that total revenue from operations increased 10 percent to Rs 442.8 crore for the quarter ended Sep. 30, 2017. The segment – which supplies transformer oils, white oils, liquid paraffins, automotive and industrial lubricants, coolants and waxes – had revenue of Rs 426.3 crore, up 11 percent.
For the April-September period, the petroleum products segment had revenue of Rs 879.6 crore, up 16.4 percent. Profit before tax and finance cost jumped nearly 17 percent to Rs 61.2 crore.