Gulf Oil Lubricants India Ltd., a Hinduja Group company, reported net profit of Rs 17.2 crore (Rs 171.7 million or U.S. $2.3 million) for the quarter, the first quarter of its fiscal year, down 65% from Rs 48.7 crore in the year-earlier period.

Total income for the quarter reached Rs 254 crore, down 43% from Rs 449 crore.

The Mumbai-based company said revenue from operations for the quarter declined to Rs 241 crore, down 45% from Rs 441 crore.

“Given the impact on the overall economic scenario and vehicle mobility across the country due to the COVID lockdown measures through the months of April and May and also to some extent in June, our [first quarter] numbers were impacted,” Managing Director and CEO Ravi Chawla said in the company’s earnings news release.

“However, month on month, there has been considerable progress towards getting back to the average monthly level of volumes,” he continued. “I am optimistic about our businesses regaining sooner than expected at the start of the quarter, as the business is clearly gaining momentum back, and we are seeing the pick-up in demand from June onwards, and we are ready for a strong return.”

KH Neochem

KH Neochem Co. reported steep declines in second-quarter operating profit and net sales for its performance materials segment, which includes refrigeration lubricant raw materials.

The segment posted operating profit of 900 million yen (U.S. $8.5 million), tumbling 44% from ¥1.6 billion in the year-earlier period. The segment’s net sales slipped 27% to ¥6.9 billion, down from ¥9.4 billion.

For the first six months of this year, the performance materials segment’s operating profit declined 28% to ¥2.8 billion, and net sales dropped 21% to ¥15.2 billion. Both net sales and operating profit declined over the first half of this year due to the decrease in sales volume.

In its earnings presentation, KH Neochem said it anticipates full-scale recovery for the refrigeration lubricant raw materials market will start in the fourth quarter because of the delayed demand recovery resulting from continuing inventory adjustments of air conditioners and refrigeration lubricant raw materials in China and other countries. In describing the business environment as of August, the company noted that economic activity has resumed, and the economy has started to recover in many countries. However, it noted that the COVID-19 outbreak still continues and that a strong sense of uncertainty about the future remains.

The company specializes in oxo reactions that produce alcohols and esters along with derivatives such as 2-ethylhexanoic acid and isononanoic acid, which it sells as raw materials for lubricants. It also makes fatty acids, esters and feedstocks for niche lubricants used in refrigeration compressors.