Results Dip at Castrol India, GP, Hi-Tech

Share

Castrol India Ltd. posted a double-digit drop in profit for the quarter ended Sept. 30, while Apar Industries Ltd. reported higher revenue for its transformer and specialty oils division. GP Petroleums Ltd. and Pakistans Hi-Tech Lubricants Ltd. both reported worse results than the same period of last year.

Castrol India

Castrol India Ltd. reported third-quarter net profit declined 15.6 percent year on year to Rs. 150.4 crore (U.S. $20.5 million), as expenses rose and other income plunged.

Total expenses rose 15 percent to Rs 712.8 crore, while other income slumped 44 percent to Rs 18.6 crore. Castrol said its other income fell as the company had a one-off property sale during the same quarter last year.

The Mumbai-based company said that steep depreciation of the Indian rupee against the U.S. dollar, and increase in input costs also affected its profit, but the company claims to have already taken appropriate actions in the market to recover from the impact.

Revenue from operations rose about 8 percent to Rs 926.9 crore during the quarter. Castrol noted that personal mobility continues to be a key strategic growth driver while theres also revival of commercial vehicle business and improvement in industrial segment.

Operations are running well with strong focus on investment in brands, capability, distribution expansion and advocacy. Cost and working capital continue to be managed with rigor, and we are introducing new, high technology products that contribute significantly to our growth, Managing Director Omer Dormen said in a statement.

Castrol has made good progress with new customer acquisitions and OEM relationships and it recently signed a strategic agreement with Mahindra Tractors, Dormen added.

The company, which recently launched Castrol Power 1 range of lubricants for bikes, said that close to 90 percent of its volume growth in 2018 has come from the new products introduced in the past 12 months, however, Castrol did not disclose sales volumes. The lube supplier said its distribution network reached 150,000 outlets across urban and rural markets.

For January-September 2018, Castrols net profit rose marginally to Rs 496.4 crore from Rs 495.1 crore a year ago. However, revenue from operations fell 0.3 percent to Rs 2,871.2 crore.

Apar Industries

Apar Chairman and Managing Director Kushal N. Desai stated in his regulatory filing that revenues from its transformer and specialty oil segment increased during the quarter year on year to Rs 549.9 crore from last years Rs 435.4 crores. Revenues for the half year also grew, increasing 12.1 percent to Rs. 1,034 crore against Rs. 922.8 crore during the same period last year.

GP Petroleums

Indias GP Petroleums reported a 9 percent decrease in net profit to Rs 2.84 crore in its second quarter ending Sept. 30, as increased expenses offset the impact of higher sales.

Total expenses increased 13.5 percent to Rs 137.15 crore, driven by higher cost of raw materials, the Ipol-branded lubricants supplier said in a regulatory filing.

Revenue from operations rose 12.6 percent to Rs 141.1 crore, the Mumbai-based company said. GP did not discuss the reasons for the rise in sales.

During the first half of 2018, GPs net profit fell 7.7 percent to Rs 6.11 crore while revenue from operators rose nearly 30 percent to Rs 308.7 crore.

Hi-Tech

Lahore, Pakistan-based Hi-Tech, hurt by lower sales and higher expenses, posted a consolidated net loss of Rs 143.3 million in its first quarter, a significant downturn from last years first quarter, which posted a net profit of Rs. 133.9 million. The companys other income fell 14 percent year on year to Rs 14.4 million.

Net sales for the distributor of SK Lubricants Zic brand of finished lubes declined 14 percent to Rs 1.75 billion. The lubricant blender did not discuss the impetus behind the decline in sales.

Total expenses jumped 66.4 percent to Rs 459.7 million. Finance costs surged 62.5 percent to Rs 42.8 million, and taxes rose about 29 percent to Rs 70.2 million.

Related Topics

Asia    Business    Earnings    India    Region