Indian state-run enterprise Balmer Lawrie & Co. reported that operating profit from its greases and lubricants segment rose nearly 17 percent year on year in its second quarter.
Balmer Lawrie, one of Indias largest grease suppliers, said that the segment posted a standalone profit of Rs 6.38 crore (Rs 63.8 million or U.S. $956,665) before tax and finance cost during the period ended September 30, up from Rs 5.46 crore in the same period last year.
Net sales for the segment rose 16 percent during the quarter to Rs 110 crore, from approximately Rs 95 crore during the same period of 2015, the Kolkata-based company said in a regulatory filing. The company supplies its Balmerol-branded products to the defense, railways, mining, steel, heavy engineering, power and automotive sectors. It has a network of more than 250 distributors and 4,500 dealers across the country.
For the first half of the current 2016-17 fiscal year, Balmer Lawries greases and lubricants segment reported net sales of Rs 229 crore, up 9 percent on year from Rs 210 crore a year ago. The segments operating profit rose 14 percent on year to Rs 17 crore during the period.
Balmer Lawries other business segments are industrial packaging, leather chemicals, travel and vacations, logistics, and refinery and oilfield services. The greases and lubricants segment accounted for about 15 percent of the companys total sales in the previous fiscal year.
Indias GP Petroleums Ltd., a subsidiary of the United Arab Emirates-based Gulf Petrochem Group, posted a 92 percent year-on-year jump in its second quarter net profit, as sales surged while taxes and finance costs declined.
The Mumbai-based lubes producer reported a standalone net profit of Rs 3.22 crore from July to September, up from Rs 1.68 crore in the same period last year.
GP, which makes the Ipol brand of lubricants, said net sales increased 24 percent in the quarter to Rs 101.5 crore. It sells industrial and automotive lubricants, process oils, transformer oils, greases and other specialties in India and internationally.
Finance costs fell 39 percent year on year to Rs 1.13 crore, and tax expenses declined 24 percent to Rs 1.6 crore, the company said in a regulatory filing. Total expenses, however, increased 25 percent to Rs 95.5 crore.
For the first six months of the fiscal year that began April 1, the company reported net sales of Rs 224 crore, up 33 percent from Rs 168 crore. Net profit rose nearly 76 percent to Rs 11 crore.
GP, which last month launched Spanish oil major Repsols fully synthetic passenger car motor oils in India, following the introduction of Repsols motorcycle oil earlier this year. GP plans to bring Repsols complete range of synthetic motorcycle, passenger cars and commercial vehicle oils to the country very soon.
GP, formerly known as Sah Petroleums, has a strategic partnership with the Spanish oil company to manufacture and market Repsol lubricants in the country. It has blending plants in Vasai and Daman in India, with total capacity of 70,800 metric tons per year.