Gulf Oil Lubricants India’s profit fell in the first three months of the year as ongoing cost pressures outweighed higher sales.

The blender’s operating profit of 840.2mn Indian rupees ($10.2mn) fell from R843.1mn during the fourth quarter of last year and by 2pc from year-earlier levels.

Profit fell even as sales rose by 24pc in the first quarter from year-earlier levels.

Sales rose on the back of higher prices and rising sales volumes.

Costs continued to rise even faster even amid steadier base oils prices. But costs faced ongoing upward pressure from other inputs such as additives.

With higher costs outpacing sales, the blender’s first-quarter profit margin of 10.6pc fell from 10.8pc during the previous three months.

Profit fell from more than 13pc during the same period a year earlier.