Gulf Oil Lubricants India Ltd., Apar Industries’ transformer oil and specialty oil segment, Balmer Lawrie’s grease segment, Savita Oil and Maximus International all reported year-to-year improvements in profits from the quarter ended Dec. 31. Several noted that India’s economic conditions improved during the quarter.
Gulf Oil Lubricants India
Gulf Oil Lubricants India Ltd., a Hinduja Group company, reported a net profit of Rs 64 crore (Rs 640 million or U.S. $8.8 million) for the period, the third quarter of its fiscal year, up 14% from Rs 55.9 crore in the same period in 2019.
The Mumbai-based company said in its earnings press release that the improvement came in spite of rising pressure from the input costs side, as the company implemented continuing cost initiatives and initiated margin management strategies.
Net revenue for the quarter rose 14% to Rs 481.9 crore. The company said volume growth was up 16%, thanks to improved demand in both business-to-consumer and business-to-business segments and to improved demand from original equipment manufacturers.
“While the vehicle movements, especially public transportation etc., are still not at pre-COVID levels, there is an overall improvement in economic activities, and the lubricant consumption increase is a good reflection of the same, and the company has continued [its] trajectory of delivering [two to three times] the industry growth in these challenging times,” the company stated.
The company noted that except for passenger car motor oil, “all other segments in aftermarket saw a return to normalcy for the industry.”
Ravi Chawla, managing director and CEO of GOLIL, sounded encouraging notes about the industry’s rebound. “With the significant pickup in economic activities and restoration of normalcy in most of the businesses, lubricants demand witnessed a good comeback,” Chawla said.
Apar Industries’ transformer oil and specialty oil segment posted profit of Rs 79.1 crore before interest and taxes for the three months ended Dec. 31, up 145% from the same period in 2019.
Third fiscal quarter sales revenue for the transformer and specialty oils segment reached Rs 561.8 crore, up 12% from Rs 500.6 million crore.
“Operations during the third quarter recovered from the economic slowdown caused by the COVID-19 pandemic,” Apar said in its financial statement’s notes. “The company is continuing its operations in all the business units with current moderate demand.”
The Mumbai, India-based company, which also supplies electrical transformers, conductors and power and telecommunications cables, said transformer oil volumes were up 5% year over year, mainly due to exports, while white oil sales volumes were up 25%, driven by both exports and domestic demand.
Grease supplier Balmer Lawrie & Co. reported that its greases and lubricants segment posted profit of Rs 10.5 crore for the quarter, up 40% from Rs 7.5 crore in the year-earlier period.
The Kolkata-based supplier of Balmerol-branded products said the segment reached Rs 104 crore for the quarter, up 18% from Rs 88.06 crore in the year-earlier period.
Mumbai-based Savita Oil reported net profit of Rs 81.1 crore, up 284% from Rs 21.1 crore in the same quarter of the 2019-2020 fiscal year. The company supplies transformer oils, white oils, lubricants and other products.
Total income for the quarter rose 5% to Rs 546.6 crore. The company’s revenue from petroleum products was Rs 531.5 crore, up 3% from Rs 514.9 crore.
The company noted in its financial statement that the COVID-19 pandemic outbreak and India’s ensuing nation-wide lockdown adversely impacted the company’s operations during the six months ended Sept. 30. The following quarter brought a faster than expected economic recovery in India, resulting in a healthy performance for the company, Savita added. “The company expects that with a continued decline in COVID-19 cases, the economic recovery in the country should gather momentum.”
Maximus International reported consolidated net profit of Rs 76 lakh (Rs 7.6 million)for the quarter ended Dec. 31, up 7%.
The Vadodara, Gujarat-based Indian company reported that consolidated revenue from operations rose 89%to Rs 14 crore.
The lubes and base oil trader said in its regulatory filing that other income for the quarter fell 13% to Rs 2 million.
Total expenses for the quarter increased 94% to Rs 13.4 crore.