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Indias GP Petroleums reported first-quarter net profit rose 25 percent year-on-year despite weak sales, thanks to a decline in expenditure and lower taxes.
Net profit increased to Rs 4.1 crore (Rs 41 million or U.S. $577,388) in the quarter that ended June 30, up from Rs 3.27 crore a year earlier, the Ipol-branded lubricants supplier said in a regulatory filing.
The Mumbai-based lubes producers revenue from operations fell 19.4 percent to Rs 134.51 crore, hurt by weak performance from both its manufacturing and trading segments. The company sells industrial and automotive lubricants, process oils, transformer oils, greases and specialty oils in India and internationally.
Revenue for its manufacturing segment – which includes production and marketing of lubricating oils and greases – declined nearly 23 percent to Rs 97.32 crore. Revenue for its trading segment that includes base oil-related activities fell 9 percent to Rs 37.19 crore.
However, lower expenses and taxes during the quarter more than offset the impact of weak sales and lifted the companys bottom line. Total expenses were down 20.5 percent to Rs 128.69 crore, and taxes declined 4 percent to Rs 2.2 crore.
In a separate statement, GP Petroleums said it will shift operations of its Daman lubricant plant – located close to Indias western state of Gujarat – to its upgraded plant in Vasai, which is just north of Mumbai. The company will close down the Daman plant operations effective Aug. 31, it added.
GP Petroleums, part of United Arab Emirates-based GP Global, said the existing staff of Daman plant will be absorbed into the Vasai plant, which was upgraded with a warehouse management system and additional storage space. It didnt disclose the annual production capacity of the Vasai plant.
Indian transformer oil supplier Apar reported a more than 54 percent increase in net profit year on year to Rs 42.13 crore for the quarter that ended June 30, up from Rs 27.32 crore in the same period last year. Total income for the quarter reached Rs. 1,871.68 crore, up almost 33 percent from Rs 1,409.09 crore in the same period last year.
Apar Chairman and Managing Director Kushal N. Desai stated in the companys regulatory filing that that revenues from its transformer and specialty oil segment grew to Rs 503.83 crore in the quarter, up more than 4 percent from Rs 484.08 crore of the same period last year.