Continental Petroleums, Hi-Tech Lubricants, Balmer Lawrie, Tide Water Oil and Castrol India each reported higher profits for the quarter ended Dec. 31, compared to the same period a year earlier.
Get alerts when new Sustainability Blog articles are available.
Indias Continental Petroleums Ltd. reported its third-quarter standalone net profit jumped 120 percent year on year to 19.3 lakh rupees (Rs 1.93 million, or approximately U.S. $30,000), boosted by other operating income and robust sales.
Continentals total income from operations increased nearly 300 percent to Rs 22.6 crore (Rs 226 million) in the quarter ended Dec. 31, the seller of Mobolene-branded lubricants and greases said in a regulatory filing. Total expenses were up 302 percent to Rs 22.3 crore.
For the April to December 2017 period, the lubricant maker reported that net profit increased around 44 percent to Rs 44.3 lakh. Total income from operations rose 144 percent to Rs 40.56 crore.
Pakistans Hi-Tech Lubricants Ltd. reported a 39 percent jump in its second-quarter net profit as sales climbed.
Hi-Techs consolidated net profit rose to 378.3 million Pakistani rupees (U.S. $3.4 million) in the quarter ended Dec. 31, up from Rs 272.5 million a year ago, the Lahore-based blender said in a regulatory filing.
The distributor of SK Lubricants Zic brand of finished lubricants reported that net sales surged 52 percent to about Rs 3.4 billion. Total expenses for the company increased 48 percent to Rs 413.3 million.
For the July to December 2017 period, Hi-Techs net profit increased 38 percent to Rs 512.2 million. Net sales jumped 43 percent to Rs 5.4 billion.
Balmer Lawrie & Co., one of Indias largest grease suppliers, reported that its third-quarter standalone operating profit from its greases and lubricants segment jumped 29 percent year on year to Rs 8.1 crore.
Revenue for the segment, however, declined 6.5 percent to Rs 99.56 crore, the supplier of Balmerol-branded products said in a regulatory filing. It didnt address the reason for the decline.
For the April to December 2017 period, the state-run diversified company said its greases and lubricants segment posted a standalone profit of Rs 22.14 crore before tax and interest, down 5 percent from the previous year. Revenue for the segment fell about 6 percent to Rs 316.4 crore.
Tide Water Oil
Tide Water Oil reported Rs 3 billion in standalone net profit for the quarter ended Dec. 31, up 2.8 percent from Rs 2.92 billion in the year-earlier period.
In a regulatory filing this week, the Kolkata-based company reported a decline in profit year over year to Rs 8.38 billion for the first nine months of 2017, down from Rs. 8.52 billion for the nine months ended December 2016.
Managing Director R.N. Ghosal told Lube Report that growth last year was affected by demonetization and the Goods and Services Tax system. Post-GST, we are experiencing restocking, Ghosal noted, adding that as a result, volume and profits increased in the quarter ended Dec. 31.
Post-GST, things are now settling down, and demand is picking up, he added. The company is doing well on all fronts, according to Ghosal, and its international branches are complementing the requirements of the Indian unit. The company is expected to put up a good show in the full years report, he said.
Castrol India Ltd. reported its fourth-quarter net profit jumped 30 percent annually to Rs 196.7 crore, as volumes drove sales higher.
Net sales increased nearly 8 percent year on year to Rs 970 crore in the quarter ended Dec. 31, according to a regulatory filing this week. The companys total expenses declined 3 percent to Rs 674.6 crore.
The company said its sales are not comparable with last years numbers due to changes in treatment of indirect taxes after GST system implementation in July. Excluding this impact, net sales during the quarter increased 24 percent from a year earlier, it added.
Castrol registered its highest quarterly volumes in the past 10 years, driven by double-digit growth in personal mobility and premium brands, Managing Director Omer Dormen said on a conference call with analysts. The volumes during the quarter increased 16 percent to 54.4 million liters.
In the fourth quarter, the growth has been across the automotive segment, Chief Financial Officer Rashmi Joshi said. We saw double-digit growth in personal mobility, as well as in the commercial vehicle segment. Industrial was a bit lower than last year, but the rest of it was significantly higher.
Dormen said the company was hit by a significant increase in input cost last year, but it was able to recover most of that increase by raising prices.
For 2017, Castrols net profit rose 3.2 percent year on year to Rs 691.8 crore, while net sales were a tad lower at Rs 3,851 crore. Excluding the impact of changes in treatment of indirect taxes post GST, net sales increased 6 percent.
Dormen said the company raised prices by another 3 percent to 4 percent in January 2018 to offset an increase in base oil costs because of higher crude prices. He noted that Castrol continues its focus on personal mobility and power brands, combined with aggressive distribution expansion and customer acquisition to boost its growth.
The Mumbai-based company said it launched its new Castrol Activ motorcycle and scooter engine oil in the fourth quarter and also increased its engagement with mechanics through its Castrol Super Mechanic contest throughout the year.
Castrol said that signs of recovery are visible in the Indian economy, and with structural reforms continuing, vehicle sales and freight movement will increase, thereby helping the company to deliver robust business performance going forward.