India’s Apar Industries, the world’s third-largest supplier of transformer oils, saw profit from its specialty oils and lubricants unit fall in the first three months of the year even as sales surged.

The unit’s profit before interest and tax came to 406mn Indian rupees ($4.9mn) in the first quarter of the year.

Profit fell by 37pc from year-earlier levels but improved from R208mn during the fourth quarter of last year.

Profit fell even as sales rose by 28pc and sales volumes by 12pc from year-earlier levels.

Factors such as rising raw materials prices and currency depreciation lifted costs, outweighing the rise in sales.

The unit’s profit margin of 3.4pc in the first quarter fell from 7.0pc during the same month a year earlier. It improved from 1.7pc during the fourth quarter of last year.