Most Indian Companies’ Profits Increase


Most Indian Companies’ Profits Increase

Castrol India Ltd. reported higher profit for the quarter ending Sept. 30, compared to the same period in 2019, while Gulf Oil Lubricants India Ltd. posted a slight decline in profit.

Meanwhile, Savita Oil, Balmer Lawrie & Co., Continental Petroleums Ltd. and Maximus International Ltd. all reported improved profits.

Castrol India

Mumbai-based Castrol India reported profits after tax of Rs 204.6 crore (Rs 2 billion or U.S. $27 million), up 9% from Rs 188.4 crore in the same period last year, the lubricant maker said in a regulatory filing.

The company posted revenue from operations of Rs 883.1 crore, down 4% from Rs 849.2 crore.

“Partial revival of pent up demand, a robust supply chain and distribution network, investment in our brands, along with judicious working capital management,  contributed to us delivering a good set of numbers, including growth across all spaces,”  Castrol India Managing Director Sandeep Sangwan said in the company’s earnings press release.

Gulf Oil Lubricants India

Gulf Oil Lubricants India, a Hinduja Group company, reported net profit of Rs 59.1 crore, down 5% from Rs 62 crore.

Total income for the quarter was Rs 425.7 crore, down 1% from 429.7 crore. The Mumbai-based company said revenue from operations edged down 2% to Rs 411.7 crore.

In its earnings news release, the company noted that results improved from the previous quarter as India came out of restrictive, pandemic-related lockdowns. It said that growth was based on initiatives to drive up volume growth across all segments and prudent cost management.

“Industry also saw some demand conditions picking up month on month, with most markets and customer segments returning to near normalcy and some pent up demand,” the company stated. “Demand increase for products in the two-wheeler and commercial vehicles category also contributed to the growth in Q2. The [passenger car motor oil] segment, which has been the most affected due to bigger metro cities having seen the longest lockdown, also picked up in terms of demand levels towards the end of the quarter.”

Savita Oil

Mumbai-based Savita Oil – which supplies transformer oils, white oils, lubricants and other products – reported net profit of Rs 37.6 crore for the quarter, up 50% from Rs 25 crore.

Total income for Savita reached Rs 489.3 crore, down 10% from Rs 544 crore.

The company noted in its financial statement that the COVID-19 pandemic adversely impacted its operations during the half-year ending Sept. 30. “Although most of the operations have resumed, some constraints are still being encountered with regard to availability of workforce and supply chain operations,” Savita stated.

Balmer Lawrie

Grease supplier Balmer Lawrie & Co. reported that its greases and lubricants segment posted profit of Rs 9.8 crore for the quarter, up 13% from Rs 8.7 crore in the year-earlier period.

The Kolkata-based supplier of Balmerol-branded products said revenue for its greases and lubricants segment declined 22% to Rs 90.6 crore.

Continental Petroleums

Jaipur, India-based lubricant and grease seller Continental Petroleums Ltd. reported net profit rose to Rs 26.1 lakh for the quarter ending Sept. 30, up 268% from Rs 7.1 lakh in the year-earlier period.

Total income, including revenue from operations and other operating income, jumped 302% to Rs 22.9 crore, while total expenses rose 304% to Rs 22.6 crore.

Maximus International

Maximus International Ltd. reported consolidated net profit of Rs 148.2 lakh (Rs 14.8 million) for the quarter, up 202% from Rs 48.7 lakh.

The Vadodara, Gujarat-based Indian company, which trades base oils and finished lubes, said in its regulatory filing that consolidated revenue from operations increased 140% to Rs 13.9 crore. Other income from the quarter fell 47% to Rs 18.1 lakh, while total expenses rose 123% to Rs 12.5 crore.