Lubricants maker Tide Water Oil Co. (India) Ltd. reported a nearly 16 percent drop in its second quarter net profit, due in part to a rise in total expenses.
The supplier of Veedol-branded lubricants posted a standalone net profit of Rs 18.3 crore (approximately Rs 183 million or U.S. $2.7 million) during the quarter ended Sept. 30, down from Rs 21.7 crore in the same period last year.
However, Tide Water reported that its net sales increased 2 percent during the quarter to Rs 257.7 crore from Rs 252.9 crore a year ago. The company services over 50,000 retail outlets in India through its network of 50 distributors and more than 650 dealers.
Total expenses rose 5.4 percent year on year to Rs 238.6 crore during the quarter, the Kolkata-based lube maker said in a regulatory filing. Other income surged 51 percent to Rs 8.2 crore while tax expenses fell about 13 percent to Rs 9.6 crore.
For the six-month period which ended Sept. 30, Tide Waters net sales rose 2.7 percent to Rs 545.5 crore, from Rs 531.1 crore during the first half a year ago. Net profit, however, declined 3 percent to Rs 45.8 crore.
Tide Water, a part of state-owned Andrew Yule Group, has five manufacturing facilities in India. The companys automotive products include engine oils for trucks, tractors, commercial vehicles, passenger cars and two- and three-wheelers. It also produces gear oils, transmission oils, coolants and greases for automobiles as well as a wide range of industrial lubricants.