Healthy Q1 for Indian Blenders

Indian lube companies saw healthy annual jumps in their first quarters. Apar Industries jumped 75 percent, Tide Water Oils climbed 8 percent, Savita Oil's increased by 47 percent, Panama Petrochem's by 12 percent, and Continental Petroleums Ltd.'s by 32 percent. Indonesia's PT Federal Karyatama also had a strong quarter, with sales volume growth of 5 percent.

Tide Water Oil Co. (India) Ltd. reported an 8 percent jump in its first quarter net profit, thanks to rises in sales and other income. The Kolkata-based lube maker posted a standalone net profit of Rs 27.5 crore (Rs 275 million or U.S. $4.1 million) during the quarter-ended June 30, up from Rs 25.5crore in the same period last year.

Tide Water, supplier of the Veedol brand of lubricants, reported that its net sales increased 3.5 percent during the quarter to Rs 288 crore from Rs278 crore a year ago. The company services over 50,000 retail outlets in India through its network of 50 distributors and more than 650 dealers.

Its other income rose 7 percent year on year to Rs 5.48 crore, while total expenses increased 2 percent to around Rs 250 crore during the period.

Indian transformer oil supplier, Apar Industries, reported net profit of just under Rs 456 crore for the quarter-ended June 2016, versus approximately Rs 26 crore during the same quarter in 2015. Thats a jump of almost 75 percent in profit despite its net sales declining to Rs 1,082 crore against Rs 1,244 crore a year before.

Revenues for its transformer and speciality oil segment also witnessed a decline to Rs 408 crore, from Rs 450 crore. Profits increased as a result of better management of projects across the board, said Sanjay Kunder, a company secretary, to Lube Report Asia. The decline in revenues is primarily due to a decline in the prices of commodities. He added that upcoming transformer oil projects will contribute to the company revenues.

Mumbai-based Savita Oil Technologies Ltd. reported net profit of Rs 2,024 lakh for the quarter-ended June 30, a 47-percent rise over Rs 1,370 lakh the previous year.

Savitas gross sales declined to Rs 37,973 lakh in its fiscal year first quarter, from Rs 42,995 lakhs.

The companys petroleum products segment also witnessed a decline to Rs 37,134 lakh from Rs 42,674 lakh in the corresponding quarter of 2015.

Indias Panama Petrochem Ltd. reported a 12 percent year on year jump in its first quarter net profit, mainly helped by lower expenses.

The Mumbai-headquartered company posted a consolidated net profit of Rs 9.32 crore in the quarter-ended June 30, up from Rs8.34 crore in the same period last year.

Total expenditure declined 2.8 percent to Rs 167.03 crore from Rs 171.86 crore.The company, which makes Panol automotive oils, reported that net sales fell 1.3 percent to Rs 182.75 crore during the quarter.

Panama Petrochem, which has four manufacturing units in India, also makes transformer oils, industrial oils, greases and other petroleum specialty products. Thecompany exports its products to countries in North America, Europe, the Middle East, Australia, Africa and Southeast Asia.

It also has a manufacturing facility in Ras Al Khaimah, United Arab Emirates, with a total production capacity of 30,000 tons per year. The facility is operated by its wholly-ownedsubsidiary, Panol Industries RMC FZE, UAE. Results of the subsidiary's business are included in the company's consolidated numbers.

Continental Petroleums Ltd., of India, reported a nearly 32 percent rise in its first quarter net profit, thanks to lower expenses and a decline in finance costs.

The company, which sells Mobolene-branded lubricants and greases, posted a standalone net profit of Rs 12.34 lakh (Rs 1.23 million or U.S. $18,478) in the quarter-ended June 30, compared to Rs 9.38 lakh the prior years corresponding quarter.

Total expenses declined 12 percent year on year to Rs 5.74 crore from Rs 6.51 crore, while finance costs fell 27 percent to Rs 3.52 lakh.

The Jaipur-based company reported that net sales fell 18 percent year on year to Rs 5.06 crore. Total income from operations declined 11 percent to around Rs 6 crore.

Continental manufactures various kinds of lubricants and greases for automotive and industrial applications. The companys facility in Behror is the largest blending plant in the northwestern state of Rajasthan, with capacity of 9,000kiloliters per year, according to its website.

Sales for Indonesian lube blender PT Federal Karyatama (FKT) increased 5 percent in its first quarter of 2016 compared to the same period last year, despite a slowdown in the countrys sales of two-wheelers.

FKTs sales volume for the first quarter of 2016 improved to 13,815 metric tons with the establishment of a new distribution center in East Java and marketing channel developments. The company said it will continue to strengthen channel development and increase product quality for its Federal Oil brand of lubricants while expanding markets outside the capital of Jakarta and Surabaya for its Federal Mobil lubricants," and that it will contintue to improve its business-to-business channels.

The company markets motorcycle oil under its Federal Oil brand and blends PT Astra Honda Motors AHM-branded lubricants for Honda motorcycles.

According to the ASEAN Automotive Federation, sales of motorcycles and scooters for the first half of this year in Indonesia fell 4.6 percent to 3.3 million units, while motor vehicles increased 1.2 percent to 525,000 units in the same period.

FKT claims to have about 20 percent of the two-wheeler lubricant market. In 2015, the company launched its first four-wheeler engine oil in about 1,000 retail workshops nationwide. Its two-wheeler lubricants are distributed through about 3,300 two-wheeler Federal Oil Centers and over 15,000 third party retailers, and by 35 distributors throughout Indonesia.

The company has two blending plants at the Pulogadung Industrial Estate in East Jakarta, Java. Total blending capacity for both plants is about 39,800 tons per year. Construction of its new plant in West Java is Ninety-five percent complete and installation of production lines, warehouse infrastructure and others will start in September, CEO Patrick Adhiatmadja said. The plant is expected to begin operations in early 2017.