Balmer Lawrie & Co.reported a decrease in operating profit, Tide Water Oil Co. posted a decline in standalone net profit and net profit was up for both Maximus International Ltd. and Continental Petroleum Ltd., while Chevron Lubricants Lanka PLC experienced a drop in profit, each for the quarter ending June 30.
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Balmer Lawrie & Co., one of Indias largest grease suppliers, reported first-quarter operating profit from its greases and lubricants segment fell 2.6 percent year on year, hurt by weak revenue.
The segment posted a consolidated profit of Rs 9.4 crore (Rs 93.7 million or U.S. $1.3 million) before interest and tax for the quarter that ended June 30, down from Rs 9.6 crore a year ago, the government-owned company said in a regulatory filing.
The supplier of Balmerol-branded products said revenue for the segment declined 8.5 percent to Rs 91.9 crore during the quarter.
Tide Water Oil
Tide Water Oil Co. (India) Ltd. reported its first-quarter standalone net profit declined more than 7 percent year over year to Rs 21.7 crore (Rs 217 million), down from Rs 23.4 crore. However, total income during the period increased 2.7 percent to Rs 302.2 crore, up from Rs 294.2 crore.
The company attributed the decline in profits to an increase in total expenses, which rose more than 4 percent to Rs 269.4 crore in the quarter.
Standalone revenue from operations fell 2 percent to 295.7 crore in the quarter, the Veedol-branded lubricants supplier said in a regulatory filing.
Indias Maximus International Ltd. reported a sharp jump in its first-quarter consolidated net profit despite weak sales, as expenses declined and other income surged.
Net profit jumped to Rs 46.5 lakh (Rs 4.7 million) for the quarter that ended June 30, up from Rs 6.6 lakh a year earlier, the lubes and base oils trader said in a regulatory filing.
The Vadodara, Gujarat-based company said revenue from operations plunged 52 percent to Rs 5.65 crore. The firm, which gets about 70 percent of its sales through exports, didnt disclose the reason for lower revenue.
The bottom-line, however, increased due to lower expenses and taxes as well as higher other income during the quarter.
Total expenses declined nearly 55 percent to Rs 5.38 crore and taxes fell to Rs 41,000 from Rs 3.1 lakh a year ago. Other income rose about 61 percent to Rs 27.9 lakh during the period.
Indias Continental Petroleums Ltd. reported first-quarter net profit surged 82 percent year on year, driven by higher revenue.
Net profit increased to Rs 23.1 lakh (Rs 2.3 million) in the quarter ending June 30, from Rs 12.7 lakh in the year-ago period, the lubricant and grease seller said in a regulatory filing.
The Jaipur, Rajasthan-based company, which sells lubes under the Contol brand, said total revenue rose nearly 33 percent to almost Rs 16.5 crore.
Total expenses were up 32 percent at Rs 16.1 crore during the quarter.
Chevron Lubricants Lanka
Chevron Lubricants Lanka PLC reported a 13 percent drop in profit year over year, to Sri Lankan rupees 439.4 million (U.S. $2.5 million) for the quarter ending June 30.
In interim financial statements released to the Colombo Stock Exchange, Chevron Lubricants Lanka reported that the gross profit during the quarter fell 6 percent year over to Rs 979.4 million, down from Rs 1 million in the same period of the prior year. Operating profits declined 13 percent year over year to Rs 608.3 million, down from Rs 698.2 million. The company reported that the decline is on account of an increase in both administrative and distribution expenses.
According to industry observers, intense price competition in the market is proving costly for Chevron Lubricants Lankas products, and with the Sri Lankan governments move to grant licenses to more players, the competition is likely to further intensify in the future.