Gulf Oil Lubricants’ Q1 profit rises

Gulf Oil Lubricants India, one of India’s largest lubricant blenders, saw its profit rise in the first three months of the year as sales and sales volumes rose to record levels.

Gulf Oil Lubricants, a unit of Hinduja Group, saw profit before tax of 861.4 mn rupees ($11.1mn) in the three months to end-March. Profit rose by 7pc from R808.1mn during the same period a year earlier.

Sales of R6.39bn rose by 23pc from year-earlier levels amid strong demand and volumes growth for heavy-duty engine oils and passenger car motor oils.

India’s lube consumption of 1.27mn t in the first three months of the year rose by 7pc from year-earlier levels to a record high. The country’s industrial production has grown every month over the past year.

Even with the stronger demand, Gulf Oil Lubricants’ sales still lagged the 26pc rise in costs during the first three months of the year.

With costs outpacing sales, the blender’s operating profit margin fell to 13.5pc in the first quarter, down from 15.6pc during the same period a year earlier.