Profits Down for GP, MJL

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Profits Down for GP, MJL

India’s GP Petroleums Ltd. and MJL Bangladesh Ltd. each reported a drop in net profit for the quarter ending March 31.

GP Petroleums

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GP Petroleums reported net profit of Rs 1.4 crore (Rs 13.6 million or U.S. $181,000) for the quarter ending March 31, dropping 74% from Rs 5.3 crore for the year-earlier period, the Ipol-branded lubricants supplier said in a regulatory filing.

The Mumbai-based company’s revenue from operations declined to Rs 92.2 crore, down 33% from Rs 137.6 crore. Other income reached Rs 53.3 lakh during the quarter, up 46% from Rs 36.5 lakh.

Total expenses declined 30% to Rs 90.8 crore, down from Rs 129.9 crore.

Revenue for its manufacturing segment – which includes production and marketing of lubricating oils and greases – fell almost 25% to Rs 70.4 crore. Revenue for its trading segment, which includes base oil trading activities, was down more than 50% to Rs 21.8 crore.

For the fiscal year ending March 31, GP’s net profit fell to Rs 15.6 core, down 4% from Rs 16.3 crore in the prior fiscal year. Revenue from operations to Rs 495.2 crore, down 18.4% from Rs 606.6 crore.

GP Petroleums noted in its filing that the COVID-19 pandemic significantly affected the company’s operations and results. “Management has taken all the necessary measures from time to time to comply with the directions issued by the local and state government authorities to prevent and contain the spread of coronavirus, including temporary shutdown of its plant, offices and depots during the lockdown period,” the company stated.

“The company has resumed operations at its plant [as of April 29] and all warehouses in a phased manner as per the directives and approvals received from the respective local and government authorities.”

MJL Bangladesh

MJL Bangladesh Ltd. reported net profit of 560.2 million taka (U.S. $6.6 million) for the quarter ending March 31, down 5% from 588.6 million taka in the year-earlier period.

The company’s net sales revenue for the quarter reached 5 billion taka, up 2% from 4.9 billion taka.

Dhaka-based MJL Bangladesh is a joint venture between state-owned Jamuna Oil Co. and EC Securities Ltd. It supplies ExxonMobil’s Mobil brand of lubricants – some of which MJL blends, and some of which is imported – and its Omera Lubricants.

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