Castrol India Ltd. reported that third-quarter net profit increased 27.5 percent annually to Rs 178 crore (Rs 1.78 billion or U.S. $27.3 million), thanks to lower expenses and higher income in the other category.
The lubricant makers total expenses declined 8 percent to Rs 619 crore in the quarter ended Sept. 30, according to a regulatory filing. Its other income jumped nearly 115 percent to Rs 33.3 crore during the quarter due to a Rs 18.6 crore gain on the selling of property.
Net sales fell 2 percent to Rs 878 crore due to changes in treatment of indirect taxes post Goods and Services Tax system implementation from July, the Mumbai-based company said. Excluding this impact, net sales increased13 percent.
Castrol said it witnessed strong volume growth during the quarter despite the complexities of GST. The companys volumes increased 7 percent on year to 49 million liters, overcoming the GST destocking phase observed in the previous quarter, brokerage ICICI Securities said in a research note to investors.
The personal mobility segment, which is the pillar of our growth strategy, saw a double-digit volume growth during the quarter, whilst power brands also showed similar growth, compared to the same period during the previous year, Managing Director Omer Dormen said in a statement. The companys power brands include Edge, Magnatec, GTX, Activ and Vecton.
Castrol said it continued to make strong progress during the quarter on its strategic priorities, focusing on new customer acquisitions and distribution expansion projects.
The company entered into a new exclusive supply partnership with Piaggio and extended its existing original equipment manufacturer partnerships with Volkswagen and Volvo and made a new deal with TaeguTec India, a supplier of carbide cutting tools.
For the January to September 2017 period, the companys net profit fell nearly 5 percent on year to Rs 495 crore, while net sales declined 3 percent to Rs 2,975 crore. Excluding the impact of changes in treatment of indirect taxes post GST, net sales rose 1 percent.
Castrol said it expects the Indian economy and the lubricant market to continue to recover, driven by the positive economic measures, improved cost of goods sold and increased vehicle sales and freight movement.
Balmer Lawrie & Co., one of Indias largest grease suppliers, reported that its second-quarter standalone operating profit from its greases and lubricants segment increased 8 percent annually to about Rs 6.9 crore (Rs 69 million or U.S. $1 million).
Net sales for the segment, however, declined 16 percent to Rs 92.6 crore during the quarter ended Sept. 30, the supplier of Balmerol-branded products said in a regulatory filing. It didnt provide the reason for the decline.
For the six-month, April-to-September period, the state-run diversified company said the greases and lubricants segment posted a standalone profit of Rs 14 crore before tax and interest, down nearly 18 percent from last year. Net sales for the segment fell 5 percent to Rs 216.8 crore.
Lubricants maker Tide Water Oil Co. (India) Ltd. reported that its standalone second-quarter net profit surged 27 percent to Rs 23 crore, driven by higher revenue and other income.
Revenue from operations rose 3 percent to approximately Rs 266 crore in the quarter ended Sept. 30, the supplier of Veedol-branded lubricants said in a regulatory filing.
Tide Water said its other income increased 10 percent to Rs 10.3 crore. Total expenses were a tad up at Rs 239.7 crore, the regulatory filing noted.
For the first half of its fiscal year, the companys net profit declined nearly 14 percent on year to Rs 39.5 crore while revenue was down 4.5 percent at Rs 521.6 crore.