Castrol India Ltd. reported nearly a 30% increase in profits for 2021, although sales for the quarter ended Dec. 31 were flat. Profits for the quarter were down for Gulf Oil Lubricants India Ltd., Apar Industries Ltd.’s transformer oils and specialty oil segment and Balmer Lawrie & Co. Ltd.’s greases and lubricants segment, while profits rose for GP Petroleums Ltd.
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Mumbai-based Castrol India reported profits after tax of Rs 753.1 crore (Rs 7.5 billion or $99.3 million) in 2021, improving 29% from Rs 583 crore in 2020. Castrol India noted in its earnings release that it achieved this growth amidst a very challenging environment marked by an unprecedented rise in input costs and supply chain disruptions resulting from the ongoing COVID-19 pandemic. For the quarter ended Dec. 31, the company’s profits after tax was flat at Rs 188.6 crore, up less than 1 percent from the same period in 2020.
The company’s revenue from operations jumped 40% to 4,192.1 crore for 2021. In the fourth quarter, revenue from operations increased 17% to Rs 1,090.6 crore.
Commenting on the fourth quarter results, Sandeep Sangwan, managing director for Castrol India, noted that Castrol India delivered resilient performance and strong topline growth in the fourth quarter. “Despite an adverse environment with rising input costs and softer market demand, we also grew our bottom line through focused investments and prudent cost actions,” Sangwan said in the earnings release.
Gulf Oil Lubricants India
Gulf Oil Lubricants India, a Hinduja Group company, reported net profit of Rs 58.6 crore (Rs 586 million or U.S. $7.8 million), 8% lower than Rs 64 crore in the same period in 2020.
The Mumbai-based company’s net revenue reached Rs 601.8 crore for the period, the third quarter of its fiscal year, a 25% increase from Rs 481.9 crore. This marked the first time the company’s net revenue in a quarter crossed the Rs 600 crore threshold.
Ravi Chawla, managing director and CEO of Gulf Oil Lubricants India, noted in its earnings release that the strong third quarter profit came in the face of many challenging market environment conditions. “With demand conditions continuing to improve in all [business-to-business and original equipment manufacturer] segments and some of the [business-to-consumer] segments,” Chawla said. “Our initiatives gave us good market share gains on the back of improved manufacturing sector and infrastructure sector related consumption growths.”
Chawla explained that although the company’s pricing actions in earlier quarters paid off, leading to an excellent topline growth, “but as input costs impacts still persists with an inflationary trend across various cost items, further fueled by continuing global supply chain disturbance, margins are yet to fully catch up to our targeted levels.”
He sounded a positive note for the near future. “We are seeing a trend of economic activities improving going forward and demand conditions picking up in the coming months and in the next financial year, especially in the manufacturing, commercial vehicle, construction equipment (infra related) and B2C sectors,” Chawla said. “This augurs well to get the overall lubricant industry back on the growth path, which should provide tailwinds for our company to push for further distribution reach and market share growths.”
GP Petroleums reported its net profit reached Rs 8.5 crore for the quarter ending Dec. 31, a 12% increase from Rs 7.6 crore.
The Mumbai-based company’s revenue from operations for the quarter jumped 37% to Rs 232.9 crore, improving from Rs 170 crore. Other income dropped 940% to Rs 1.9 lahk, down from Rs 32 lakh. Total expenses grew 38% to Rs 221.4 crore.
GP Petroleums’ manufacturing segment produces and markets lubricating oils and greases. The segment’s revenue was Rs 104.6 crore, up 18%. Revenue for its trading segment, which includes base oil trading activities jumped 58% to Rs 128.2 crore.
Apar Industries’ transformer oil and specialty oil segment reported profit of Rs 62.8 crore before interest and taxes for the quarter ended Dec. 31, a 21% decline from Rs 79.1 crore.
The transformer and specialty oils segment’s third fiscal quarter sales revenue climbed 31% to Rs 739.8 crore.
In its investor update, the company noted volume growth for its specialty oils remained mute, with transformer oil’s sales volume down 16% for the quarter, due to continuing weak domestic demand.
The company said its industrial oil sales volumes remained flat in the quarter, while automotive oil sales volumes declined 26% due to slow retail demand sales volumes to tractor original equipment manufacturers.
The Mumbai, India-based company also supplies electrical transformers, conductors and power and telecommunications cables.
Grease supplier Balmer Lawrie reported profit for its greases and lubricants segment of Rs 10 crore for the quarter, a 5% decline from Rs 10.5 crore. The Kolkata-based supplier of Balmerol-branded product said its grease and lubricants segment’s sales increased 27% to Rs 132.1 crore for the quarter, rising from Rs 104 crore.