Profits Down for Indian Lube Suppliers

Tide Water Oil Co. and Balmer Lawrie & Co.’s greases and lubricants segments both reported declines in profit for the quarter ending March 31, according to recent regulatory filings.

Tide Water Oil

Tide Water Oil posted standalone profit of Rs 23.4 crore (Rs 234 million or U.S. $3.1 million) in the quarter, down 18% from Rs 28.4 crore a year earlier.

The manufacturer and distributor of Veedol-branded lubricants said revenue from operations fell 19% to Rs 252.9 crore for the quarter, down from Rs 311.4 crore. Total expenses for the quarter were down 17% at Rs 232.4 crore.

Tide Water Oil said in its filing that the impact of India's government-imposed nationwide lockdown due to the COVID-19 pandemic was temporary, as the company obtained requisite approvals during the end of April through May to resume its manufacturing operations across its plants. As a result of the lockdown and restrictions, “production in the company's plants could not be carried out from March 23 until these approvals were obtained and consequently impacted sales and other operations,” the company stated.

The company noted the current economic environment could temporarily result in lower demand in fiscal year 2021 compared to fiscal year 2020.

Tide Water said it has gradually ramped up its production from May and June and a steady increase in operational levels is expected.

For the fiscal year that ended March 31, the Kolkata-based company’s consolidated net profit reached Rs 122.1 crore, up 26% from Rs 97 crore. Consolidated revenue for the fiscal year declined 4% to Rs 1,316.6 crore. Consolidated total expenses for the year declined to Rs 1,193.3 crore, down 5%.

Balmer Lawrie

Indian grease supplier Balmer Lawrie & Co. said its greases and lubricants segment posted operating profit of Rs 8.7 crore (Rs 87 million or U.S. $1.1 million) for the quarter that ended March 31, down 36% from Rs 13.7 crore in the year-earlier period.

The Kolkata-based supplier of Balmerol-branded products said revenue for its greases and lubricants segment slipped 16% to Rs 75.7 crore during the quarter, down from Rs 89.6 crore.

For the fiscal year that ended on March 31, the company’s greases and lubricants segment posted consolidated operating profit of Rs 34.3 crore, down 11% from Rs 38.5 crore.

The segment’s revenue for the fiscal year slid 1% to Rs 372 crore, down from Rs 376 crore.