GP Petroleums Profit up Despite Less Revenue

Indias GP Petroleums Ltd. reported a 4.7 percent increase in net profit in its fourth quarter. The United Arab Emirates-based Gulf Petrochem Group unit said growth was muffled by lower sales, higher finance costs and tax expenses.

The Mumbai-based lubes producer earned just shy of Rs 5.8 crore (approximately Rs 58 million or U.S. $898,250) from January to March 2017, slightly up from Rs 5.5 crore in the same period last year, according to a regulatory filing.

GP, which makes the Ipol brand of lubricants, said that net sales revenue declined 16 percent on year to about Rs 128 crore. GP sells industrial and automotive lubricants, process oils, transformer oils, greases and other specialties in India and internationally.

The companys finance costs increased 73 percent to Rs 2.3 crore and tax expenses surged 36 percent to Rs 3.3 crore. However, the bottom line was supported by lower expenses and a jump in other income. Total expenses declined 17 percent to Rs 121 crore, while other income more than doubled to Rs 4.3 crore from Rs 2 crore last year.

For its full fiscal year, GP posted a net profit of Rs 20.2 crore, up 49 percent from Rs 13.6 crore in the previous year. Annual net sales increased approximately 14 percent to about Rs 480 crore. Its customers include TAFE, Force Motors, Mahindra and Mahindra, Crompton Greaves, Royal Enfield and Tata Steel, among others.

GP, formerly known as Sah Petroleums, manufacturers and markets Spanish oil major Repsols lubricants in the country. In October 2016, it launched Repsols fully synthetic passenger car motor oils in India, following the introduction of Repsols motorcycle oils earlier in the year. The company plans to bring Repsols complete range of synthetic motorcycle, passenger car and commercial vehicle oils to the country in coming years. It has blending plants in Vasai and Daman, with total capacity of 70,800 metric tons per year.