February 15, 2019
Volume 7 Issue 4
Earnings Up for Gulf, Continental
Gulf Oil Lubricants India Ltd. and Continental Petroleums Ltd. both reported healthy increases in profit for their third quarters, the former thanks to a jump in sales, the latter due to cost cutting. Meanwhile, Tide Water Oil Co. and Hi-Tech Lubricants Ltd. both had setbacks in performance.
Gulf Oil Lubricants
Mumbai-based Gulf reported a net profit of Rs. 49.8 crore (Rs. 498 million or U.S. $7 million) for the three months ended Dec. 31, up 17 percent from the same period of 2017-2018. Net revenue from operations climbed 30 percent to Rs. 46.9 crore.
“The robust core volume growth of 20 percent achieved during the quarter is a reflection of the company's strategies,” Managing Director Ravi Chawla said in the company’s regulatory filing. “Our continued performance delivering more than three times the industry growth rate and third quarter [earnings before interest, taxes, depreciation and amortization] growth rate of 18 percent year on year is the realization of our objective of getting market share with stable margins.”
Growth in retail volume growth slowed marginally due to price implemented during the quarter, but sales to original equipment manufacturers, infrastructure customers and Industrial segments showed strong upswing supported by excellent growth in exports, Chawla added. The company called out the inking of the agreement with Tata Motors for the launch of a co-branded lubricant range for passenger vehicles.
Chawla said the company’s foray into rural markets through its Gulf Rural Stockists program also contributed a significant share in the third quarter growth.
Continental’s net profit rose 22 percent to Rs 23.6 lakh (Rs. 23.6 million). Revenue from operations plunged 52 percent to Rs. 10.8 crore, but total expenses declined 53 percent to Rs 10.5 crore, thanks to decreasing costs of materials consumed and reduced employee benefits expenses.
Continental is based in Jaipur and sells lubes under its Contol brand.
Tide Water Oil (India)
Tide Water Oil Co. (India) Ltd. reported its third-quarter standalone net profit declined nearly 31 percent year on year to Rs 20.1 crore. The company said performance was hurt by higher expenses and lower other income.
Its other income slipped 10 percent to Rs 7.7 crore, while total expenses rose 9 percent to Rs 285 crore during the quarter.
The Veedol-branded lubricants supplier said standalone revenue from operations increased 5.5 percent to Rs 308.4 crore.
Lahore-based blender Hi-Tech Lubricants Ltd. posted a consolidated net loss of Rs 128.5 million (U.S. $924,863) in the second quarter that ended Dec. 31 versus a net profit of Rs 378.3 million in the year-ago period, according to its regulatory filing.
Finance costs soared 149 percent to Rs 90.5 million, while net sales declined 26 percent to Rs 2.49 billion. The distributor of SK Lubricants’ Zic brand of finished lubes did not provide the reason for weak sales.
Total expenses decreased 23.5 percent to Rs 316.3 million during the quarter.