November 15, 2019
Volume 7 Issue 7
Results Up for Most Indian Companies
Gulf Oil Lubricants India Ltd., Balmer Lawrie & Co., GP Petroleums Ltd. and Continental Petroleums Ltd. each reported increased profits, while Maximus International Ltd. reported a decline in profit for the quarter ending Sept. 30.
Gulf Oil Lubricants India
Gulf Oil Lubricants India Ltd., a Hinduja Group company, reported a net profit of Rs 62 crore (Rs 620 million or U.S. $8.6 million) for the three months ending Sept. 30, up 54 percent from Rs 40.3 crore in the year-earlier period. Revenue from operations for the quarter grew by 1 percent to Rs 421.3 crore.
For the April-September period the company reported a 37.7 percent increase in net profit year-on-year to Rs 110.7 crore, up from Rs 80.4 crore during the same period last year. The company reported a 6.7 percent increase in net revenues to Rs 862 crore for the April-September period, up from Rs 807.6 crore.
In interim financial statements released to the Bombay Stock Exchange, the company said the second quarter is usually a seasonally slower quarter due to monsoons, and overall sentiments were also weak due to the automotive sector slow down. However, the slowdown in the automobiles sector was offset by strong performance in the sales to the infrastructure and industrial sectors.
Ravi Chawla, managing director of Gulf Oil Lubricants India, said, “While our performance has been positive on all parameters amidst tough market conditions, we are working towards sustaining our growth in the second half. Our [Bharat Stage VI]-compliant products are ready. We have extensively tested the products in Indian road and driving conditions and we are confident that our business model will overcome the challenges ahead. We are quite hopeful of revival in auto sector demand conditions in the next one to two quarters.”
Balmer Lawrie & Co., one of India’s largest grease suppliers, reported in a regulatory filing that consolidated profit before interest and tax for its greases and lubricants segment reached Rs 8.2 crore (Rs 82 million or U.S. $1.1 million) for the quarter ending Sept. 30, up almost 19 percent from Rs 6.9 crore a year ago.
The government-owned company that supplies Balmerol-branded products said revenue for the segment jumped 23 percent to Rs 115.9 crore during the quarter.
During April-September, the segment’s operating profit rose 6 percent to Rs 17.5 crore, while revenue grew about 7 percent to Rs 207.8 crore.
GP Petroleums Ltd., part of United Arab Emirates-based GP Global, reported second-quarter net profit jumped 90 percent year-on-year, thanks to higher revenue and lower taxes. Net profit surged to Rs 5.4 crore (Rs 54 million or U.S. $750,000) in the quarter that ended Sept. 30, up from Rs 2.8 crore a year earlier, the Ipol-branded lubricants supplier said in a regulatory filing.
The Mumbai-based lubes producer’s revenue from operations rose nearly 12 percent to Rs 157.4 crore, mainly driven by upbeat performance by its trading segment.
Revenue for the trading segment, which includes activities through base oil, more than doubled to Rs 82.3 crore during the period from Rs 30.1 crore a year ago. However, revenue at its manufacturing segment that is comprised of production and marketing of lubricating oils and greases fell 32 percent to Rs 75.2 crore.
Total expenses rose nearly 12 percent to Rs 153.2 crore, while current taxes declined 53 percent to Rs 64.6 lakh.
For the April-September period, net profit increased 55 percent to Rs 9.5 crore, but revenue fell 5 percent to Rs 291.9 crore.
India’s Maximus International Ltd. reported quarterly profit declined nearly 33 percent year over year, as the lubes and base oils trader’s revenue slumped. Consolidated net profit stood at Rs 48.7 lakh (Rs 4.87 million or U.S. $68,113) in the second quarter that ended Sept. 30, down from Rs 72.3 lakh a year earlier, the trader said in a regulatory filing.
Revenue from operations plunged over 71 percent to Rs 5.8 crore. The Vadodara, Gujarat-based company, which gets about 70 percent of its sales through exports, didn’t disclose the reasons for lower revenue.
Total expenses decreased 71 percent to Rs 5.6 crore, according to the statement.
During April-September, the company’s net profit rose about 21 percent to Rs 95.3 lakh. However, revenue declined over 64 percent to Rs 11.5 crore.
India’s Continental Petroleums Ltd. reported second-quarter net profit rose 5 percent year on year despite weak sales, as the lubricant and grease seller’s total expenses and taxes declined. Net profit increased to Rs 7.1 lakh (Rs 710,000 or U.S. $9,900) in the quarter that ended Sept. 30, up from Rs 6.8 lakh in the year-ago period, the Jaipur, Rajasthan-based company said in a regulatory filing.
Total income for the company, which sells lubes under the Contol brand, plunged nearly 60 percent to Rs 5.7 crore. It didn’t disclose the reason for the decline in sales.
Total expenses decreased 60 percent to Rs 5.6 crore, and taxes fell over 35 percent to Rs 2.5 lakh during the quarter.
For the April-September period, the company’s net profit jumped 55 percent to Rs 30.2 lakh, while total income fell over 16 percent to Rs 22.1 crore.