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February 1, 2019

Volume 7 Issue 7

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Earnings Up for Castrol, Apar, Savita; Down for GP

Castrol India Ltd. reported a strong increase in profit, GP Petroleums Ltd. posted a significant decrease in net profit, Apar Industries posted a jump in operating income and Savita Oil Technologies Ltd.’s total revenue grew for the quarter ending Dec. 31.

Castrol India

Castrol India Ltd. reported an 8 percent rise in profit for the quarter ending Dec. 31, driven by volume growth, and said the company plans to boost its capacity to meet future demand.

Net profit increased to Rs 212 crore (Rs 2.12 billion or U.S. $29.8 million) in the quarter, up from Rs 196.7 crore in the same period last year, the lubricant maker said in a statement.

Revenue from operations increased 6 percent to Rs 1,033 crore during the quarter. Total expenses rose 8 percent to Rs 730.9 crore.

For 2018, Castrol’s net profit rose 2 percent on year to Rs 708 crore, and revenue from operations increased by 9 percent to Rs 3,905 crore.

The company said it recorded strong volume growth for the third consecutive year, driven by investment in brands, distribution network and customer acquisition. It didn’t provide the volume amount.

Castrol noted that close to 80 percent of its volume growth in 2018 was delivered through new products introduced in the last 12 months. The company said it strengthened its portfolio in motorcycle oils with bike care products, such as the introduction of chain lubricants.

The Mumbai-based firm stated personal mobility continues to be a key strategic growth driver, while there’s also good growth in the commercial vehicle oil business.

“We were able to protect our margins through appropriate pricing interventions and rigorous cost management despite an extremely volatile input cost environment,” Managing Director Omer Dormen said.

Dormen also said the company’s board approved to expand the capacity of its Silvassa plant to drive growth and be future-ready. Castrol plans to invest Rs 140 crore over the next two years to scale up the plant’s capacity by 50 percent, he added.

GP Petroleums

India’s GP Petroleums reported a 17 percent year-on-year drop in its third-quarter net profit, hurt by lower revenue.

Net profit fell to Rs 4.80 crore in the quarter that ended Dec. 31 from Rs 5.78 crore a year earlier, the Ipol-branded lubricants supplier said in a regulatory filing.

Revenue from operations declined nearly 19 percent to Rs 160.93 crore, the Mumbai-based company said. Total expenses were down 19 percent at Rs 155.67 crore.

For the April through December period, GP’s net profit decreased 12 percent on year to Rs 10.92 crore, but revenue from operators rose 7.6 percent to Rs 468.96 crore.

Apar Industries

Indian transformer oil supplier Apar reported a 41.4 percent increase in operating income year-on-year to Rs 2,119.05 crore during the company’s third quarter ending Dec. 31. However, quarterly net profit fell 12.2 percent to Rs. 34.72 crores during the period from Rs. 39.54 crore last year.

Revenues from its transformer and specialty oil segment grew 28 percent to Rs 727.3 crore, up from Rs 568.4 crore.

Overall oil sales volumes were up 9 percent during the third quarter to 115,765 kiloliters. Automotive oil volumes grew 24 percent year-on-year to 10,780 kiloliters, driven by both original equipment manufacturer and retail sales. Industrial lubricant volumes jumped up 21 percent year-on-year, and transformer oils grew 7 percent from the same quarter last year.

Sanjaya Kunder, company secretary, said in his regulatory filing that the company’s port-based Hamriyah (Sharjah) plant became operational in January 2017, and became cash positive with 50 percent capacity utilization last year. Its proximity to customers in the Middle East and East Africa has opened new avenues for bulk exports.

Savita Oil

India’s Savita Oil – a supplier of transformer oils, white oils and lubricants – reported a net profit of Rs 44.47 crore for its quarter ended Dec. 31, up 26.4 percent from Rs 35.17 crore the same quarter last year.

Total revenue for the company’s third quarter stood at Rs 620.59 crore, up 33.2 percent from Rs 465.93 crore during the same period last year.

Revenue from petroleum products rose to Rs 597.85 crores in the third quarter, up 30.3 percent from Rs 458.99 crore during the same period last year.