Earnings Rise for Hi-Tech, MJL

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Earnings Rise for Hi-Tech, MJL

For the quarter ending March 31, MJL Bangladesh Ltd. and Pakistan’s Hi-Tech Lubricants both reported higher profit and sales. Hi-Tech noted that its lubricants business has benefited from growth in Pakistan’s automobile industry and a rebound in economic activity.

MJL Bangladesh

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Dhaka-based MJL Bangladesh reported that its first quarter net profit grew 25% to 699.8 million takas (U.S. $8.3 million) for the quarter ending March 31, up from 560.2 million taka in the same period in 2020.

The company’s net sales revenue for the first quarter increased 2% to 5.1 billion takas.

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 blended by MJL, some imported – and its Omera Lubricants.

Hi-Tech Lubricants

Lahore-based Hi-Tech Lubricants reported consolidated net profit skyrocketed 385% to 203.2 million Pakistani rupees (U.S. $1.3 million) for the quarter ending March 31 – the third quarter of the company’s fiscal year that ends on June 30 – up from Rs 41.9 million in the year-earlier period.

Net sales for the quarter reached Rs 2.6 billion, a 63% increase. The blender’s other income increased 25% to Rs 29.1 million for the quarter.

For the nine months ended March 31, Hi-Tech posted an Rs 508 million profit, improving from an Rs 92.4 million net loss in the same period in 2019-2020. Nine-month revenue for the lubricants segment rose 61% to Rs 5.8 billion, improving from Rs 3.6 billion.

In the director’s review, the company noted its wholly owned subsidiary – Hi-Tech Blending (Private) Ltd. – played an important role in the growth of its lubricants segment. The plant started local blending of Fighter Brands – in-house production of South Korea’s SK Lubricants’ Zic Lubricants – in November 2018 and during the period under review saw a 92% volumetric growth in this product line over the same period a year earlier.

The company noted that Pakistan’s automobile industry witnessed significant growth due to new entrants in the market and a rebound in economic activity. Pakistan Automotive Manufacturers Association released its latest auto sales data for nine months ended March 21, portraying an increase of 36% year on year basis to 134,718 units, which Hi-Tech said was a healthy sign for the company’s lubricants segment. To reap benefits of the growth in

the automobile sector, the company signed contracts with Hyundai Nishat Motors (Private) Ltd. and M/S Regal Automobile Industries Ltd. for use of Zic lubricants in their aftersales service in all variants of cars sold by them.

Related Topics

Asia    Bangladesh    Business    Earnings    Finished Lubricants    Market Sectors    Pakistan    Region