Castrol India Ltd. reported net profit of Rs 125.2 crore (Rs 1.25 billion or U.S. $16.4 million), down 32 percent from Rs 185 crore in the same period last year, the lubricant maker said in a regulatory filing.

The Mumbai-based company’s revenue from operations dropped 30 percent to Rs 688 crore, down from Rs 976.2 crore.

The company noted in its earnings statement that the impacts of the novel coronavirus caused significant decline and volatility in economic activities during the quarter. Castrol India noted that it closed its manufacturing facilities in Patalganga, Silvassa and Paharpur on March 23, following the countryside lockdown due to Covid-19. The company said it obtained required permissions and commenced partial operations at all three manufacturing facilities in May.

“The first quarter of 2020 has been unprecedented with an overall slowdown in the economy, a

liquidity crunch as well as the breakout of the global Covid-19 pandemic,” Castrol India Managing Director Sandeep Sangwan said in a press release about the company’s financial results. “As a result of which, the overall lubricant industry in the country has been hit by severe demand and supply disruptions. We continue to work on numerous cost control actions, working capital management as well as efficiency programs to drive margins and protect our finances.”

Gulf Oil Lubricants India

Gulf Oil Lubricants India Ltd., a Hinduja Group company, posted net profit of Rs 35.9 crore (Rs 359.4 million or U.S. $4.7 million) for the quarter ended March 31, down 24.5 percent from the year-earlier period.

For its full fiscal year, Mumbai-based Gulf Oil Lubricants India reported a net profit of Rs 202.5 crore, up 14 percent from the previous fiscal year.

Total income for the quarter reached Rs 370 crore, down 17 percent from Rs 445 crore during the same period last year. For the full fiscal year, the company’s total income increased to Rs 1,679 crore, down 3 percent from Rs 1,735 crore in the prior fiscal year.

Revenue from operations for the quarter reached Rs 360 crore, down 17 percent from Rs 436 crore. The company’s revenue from operations for the full fiscal year reached Rs 1,643 crore, down 4 percent from Rs 1,706 crore for the prior fiscal year.

The company noted the lubricants industry faced many challenges during the fiscal year ending March 31 due to India’s major automotive industry slowdown for new vehicles production and sales, coupled with overall weaknesses in the country’s economy across sectors. The factors impacted the lubricants market demand and usage levels, the company said.

“Given the impact on the overall economic scenario and vehicle mobility across the country due to the sudden Covid-19 lockdown measures towards the end of March, our Q4 numbers were impacted, registering a [decline] for the first time in many years,” Ravi Chawla, managing director and CEO of Gulf Oil Lubricants India, said in a news release. “However, our full [fiscal] year result is still an outperformance, as compared to the industry, in terms of market share growth.”