GP Petroleums Ltd. reported its third-quarter net profit surged 72 percent year on year to Rs 5.78 crore (Rs 57.8 million, or U.S. $905,865), thanks to a jump in revenue and other income.
Revenue from operations increased 40 percent to approximately Rs 198 crore in the quarter ending Dec. 31, the supplier of Ipol-branded lubricants said in a regulatory filing this week. It didnt provide reasons for the increase in sales.
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The Mumbai-based company said that other income jumped to Rs 2.81 crore during the quarter from Rs 34.75 lakh in the same period last year. Total expenses rose 40 percent to about Rs 192 crore.
For the April to December 2017 period, GP reported net profit decreased 14 percent to Rs 12.41 crore. Revenue from operations, however, were up 11 percent at Rs 435.88 crore.
The lubes producer also said that it has deferred its plan to shift production facilities from western Indias Daman region to Vasai, which is just north of Mumbai, to meet the enhanced demand.
The company, which sells industrial and automotive lubricants along with process oils, transformer oils and greases, noted that its Daman plant will continue to be operative, it added.
In September 2017, the company had said that it will close its lubricant plant in Daman due to discontinuation of tax benefits under the countrys new Goods and Services Tax system and as the lease period of the Daman plant was set to expire on Dec. 15. It planned to shift the production and sales to its Vasai plant, where sufficient unutilized capacity was available.
GPs total lubricant production capacity is around 70,800 metric tons per year, but the annual output is only around 44,000 tons from its blending plants in both Daman and Vasai.
The subsidiary of the United Arab Emirates-based GP Global Group also said that its Chief Financial Officer Jagdish Nagwekar resigned effective Jan. 31. The company appointed Arjun Verma as the new finance chief effective Jan. 22.