Interested in the lubricant industry in Asia?

Subscribe now to Lube Report Asia. This FREE weekly e-newsletter features breaking news and base oil price reports.

February 14, 2020

Volume 7 Issue 8

    View Printer Friendly Article Bookmark and Share

Mixed Results for Companies in India

Gulf Oil Lubricants India Ltd. and Maximus International Ltd. each reported increased profits, while GP Petroleums and Continental Petroleums each posted a decline in profit for the quarter ending Dec. 31.

Gulf Oil Lubricants India

Mumbai-based Gulf Oil Lubricants India Ltd. reported net profit of Rs 55.9 crore (Rs 559 million or U.S. $7.8 million) for the three months ending Dec. 31, up 12.2 percent from Rs 49.8 crore in the year-earlier period. Revenue from operations for the quarter declined 8.7 percent to Rs 421.9 crore million, down from Rs 462 crore million.

The company achieved a net revenue of Rs 1,283.2 crores. Profit after tax for the April-December period stood at Rs. 166.6 crores, up 27.9 percent from Rs 130.2 crore in the year-earlier period.

In interim financial statements released to the Bombay Stock Exchange, the Hinduja Group company said, “the company has registered volume growth and gained market share across segments in a challenging economic and industry environment.”

Good performances in the Industrial and Infrastructure segments balanced the slowdown in the factory fill on the back of the auto slowdown, according to the company, which said it is investing in building technical and servicing competencies to tap huge opportunities in these segments.

Ravi Chawla, managing director for Gulf Oil Lubricants India, said, “we reported growth in core lubricant volumes, excluding factory fill. This was possible due to strong performance in all segments of the business, including [business-to-business], especially in Infrastructure and mining segments. Despite the slowdown, our marketing and brand-building efforts have helped us to retain and grow business in the bazaar segment. We are ready and have introduced [Bharat-VI] ready products in the market. We are expecting a revival in the auto segment in the coming quarters,” Chawla added.

India plans to move from the current BS IV automobile emissions standard directly to BS VI in April 2020, skipping BS V to tackle the nation’s worsening air pollution. BS VI is equivalent to the European Union’s Euro 6 standard and is expected to force engine design changes that require more advanced engine oils.

GP Petroleums

GP Petroleums Ltd., part of the United Arab Emirates-based GP Global, reported third-quarter profit slipped 2 percent year-on-year, as revenue declined.

Net profit from operations fell to Rs 4.7 crore (Rs 47.1 million or U.S. $660,571) in the quarter that ended Dec. 31 from Rs 4.8 crore a year earlier, according to the Ipol-branded lube supplier’s regulatory filing.

The Mumbai-based lubes producer’s revenue from operations declined 31 percent to Rs 111.1 crore, hurt by weak performance by its manufacturing and trading segments.

Revenue at the manufacturing segment, comprised of production and marketing of lubricating oils and greases, decreased nearly 29 percent to Rs 78.6 crore. Revenue at its trading segment, which includes activities through base oil, slumped about 36 percent to Rs 32.5 crore.

Total expenses were down 32.4 percent at Rs 105.2 crore during the quarter.

For the April-December period, the company’s net profit increased 30 percent to Rs 14.2 crore, while revenue declined 14 percent to Rs 403 crore.

Continental Petroleums

India’s Continental Petroleums Ltd. reported third-quarter net profit declined 22.4 percent year on year, hurt by weak sales.

Net profit decreased to Rs 18.3 lakh (Rs 1.8 million or U.S. $25,665) in the quarter that ended Dec. 31, down more than 22 percent from Rs 23.5 lakh a year ago, the lubricant and grease seller said in a regulatory filing.

Total income for the company, which sells lubes under the Contol brand, slumped 30.5 percent to Rs 7.5 crore. It didn’t disclose the reason for the decline in sales 

Total expenses fell 30.5 percent to Rs 7.3 crore during the quarter, according to the statement.

For the April-December period, the Jaipur, Rajasthan-based company’s net profit rose nearly 14 percent to Rs 48.9 lakh, while total income fell 20.5 percent to Rs 29.7 crore.

Maximus International

India’s Maximus International Ltd. reported consolidated profit jumped nearly six-fold in the third quarter, driven by profit from an associate company and increases in other income.

Consolidated net profit stood at Rs 70.9 lakh (Rs 7.1 million or U.S. $99,380) in the quarter that ended Dec. 31, up 82.7 percent from Rs 12.3 lakh a year earlier, the lubes and base oils trader said in a regulatory filing.

Maximus recorded a profit of Rs 1.4 lakh from its associate company during the quarter, compared with a loss of Rs 42 lakh a year ago. Other income rose about 15 percent to Rs 22.9 lakh.

Revenue from operations declined 35 percent to Rs 7.4 crore. The Vadodara, Gujarat-based company, which gets about 70 percent of its sales through exports, didn’t disclose the reasons for lower revenue.

The company’s net profit for the nine months ending Dec. 31 jumped 82 percent year on year to Rs 1.7 crore. However, revenue declined about 57 percent to Rs 18.9 crore.