Castrol India Ltd. reported a substantial increase in profit for the quarter ending Sept. 30, while Pakistans Hi-Tech Lubricants Ltd. posted a steep decline in annual profit for the fiscal year ending June 30.
Castrol India Ltd. reported a 25 percent year-on-year jump in its third-quarter profit despite lower sales, as a decline in total expenses and taxes supported the bottom-line. The company also announced the appointment of a new managing director for India.
Net profit rose to Rs 188.4 crore (Rs 1.88 billion or U.S. $26.6 million) for the quarter that ended Sep. 30, from Rs 150.4 crore in the same period last year, the lubricant maker said in a regulatory filing.
The Mumbai-based firms revenue from operations fell 8.4 percent to Rs 849.2 crore. Total expenses decreased 12.5 percent to Rs 623.6 crore, and tax expenses plunged nearly 41 percent to Rs 48.8 crore during the quarter.
Our 3Q 2019 result underlines a resilient performance despite an extremely challenging environment, with declining industrial production levels and muted consumer offtake, Managing Director Omer Dormen said in a statement.
Castrol India said personal mobility continues to be a growth driver for lubricants demand, especially in two-wheelers. The personal mobility volumes were at a level similar to last year, it noted, without providing any numbers.
Dormen said the companys sustained efforts on its strategic drivers, including product mix improvement and rigorous efficiency programs, helped the firm to successfully manage the short-term adverse conditions and still deliver profitable growth for the third quarter.
The company continued making strong progress on strategic partnerships and unique service offerings for customers during the quarter, Dormen noted. We are excited about our first two-wheeler [original equipment manufacturer]-endorsed Castrol brand for the retail market with Honda 2 Wheelers India, he said, adding that a new range of Castrol Activ lubricants was launched exclusively for Hondas over 40 million customers.
Separately, Castrol India said that Dormen will resign from his position as managing director of the company, effective Dec. 31, after four years in India, to pursue another opportunity within the BP Group. Dormen will move into another role to lead Castrols business in Europe, effective Jan. 1, it said.
Castrol India appointed Sandeep Sangwan as the managing director for a period of five years, effective Jan. 1, 2020. Sangwan joined BP in 2012 and is currently based in the United Kingdom as program director, leading a major transformation program in BP Lubricants, the company said. Both the executives will work closely over the next few months to facilitate a smooth transition, the company added.
Pakistans Hi-Tech Lubricants Ltd. reported its annual profit slumped nearly 95 percent year-on-year, hurt by higher expenses and increased finance costs.
The Lahore-based blender posted a consolidated net profit of Rs 41.1 million (U.S. $262,000) for the year that ended June 30, sharply down from Rs 759.5 million a year ago, according to a statement posted on its website.
Total expenses increased 29 percent to Rs 1.5 billion during the year, while finance costs jumped nearly 147 percent to Rs 314 million.
The distributor of SK Lubricants Zic brand of finished lubes reported net sales rose about 2 percent to Rs 9.4 billion during the period.