Profits Down at Hi-Tech, Up at Castrol India


Pakistans Hi-Tech Lubricants Ltd. reported a 53 percent slump in its third quarter net profit as sales declined and expenses rose. Castrol India Ltd. reported a marginal 1.6 percent rise in its first quarter net profit, thanks to lower expenses and higher other income.

Hi-Tech Lubricants

Hi-Techs consolidated net profit fell to Rs 120 million (U.S. $1 million) in the quarter ended March 31 from Rs 255.2 million a year ago, the Lahore-based blender said in a regulatory filing.

The distributor of SK Lubricants Zic brand of finished lubricants reported its net sales declined 29 percent on year to Rs 1.33 billion. Total expenses for the company increased 24 percent to Rs 262.4 million, while finance costs rose 45 percent to Rs 36.3 million.

For the nine-month period ended March 31, Hi-Techs net profit was up about 1 percent at Rs 632.2 million. Net sales rose 19 percent to Rs 6.73 billion.

Castrol India

Castrol Indias net profit increased to Rs 181.8 crore (approximately Rs 1.82 billion or U.S. $27.2 million) in the first quarter ending March 31 from Rs 179 crore in the same period last year, the lubricant maker said in a regulatory filing.

The companys total expenses declined 12 percent to Rs 667.8 crore, while other income jumped 23 percent to Rs 22.8 crore during the period.

Net sales fell 8.4 percent to Rs 927.1 crore during the quarter. The company said its sales are not comparable with last years numbers due to changes in treatment of indirect taxes after GST system implementation in July.Excluding this impact, net sales during the period increased 5 percent on year, driven by volume growth across categories, the company stated.

“Despite the sharp rise in input costs during the quarter under review, we were able to deliver a good set of numbers which shows our strategy of profitable volume growth is well on track,” Managing Director Omer Dormen said in a statement.

The Mumbai-based company launched several new products during the quarter and created higher visibility for its key brands through media campaigns and a focused retail transformation drive while continuing its efforts on customer acquisition and distribution expansion.

Castrol noted that it signed a three-year contract with automaker Ford India to supply engine and transmission oils for all Ford vehicles produced in India for domestic and international markets.

The company said that theres a possibility of further volatility in raw material costs due to continued increase in crude oil prices and the depreciation of the Indian rupee against the U.S. dollar.

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