Pakistan-based blender Hi-Tech Lubricants Ltd.’s consolidated net profit for the quarter ended June 30 was down by more than 900%, while sales were up more than 100%. For its fiscal year, the company reported 10% higher profit, while sales climbed almost 70%.
Pakistan’s economic outlook is surrounded by global and domestic uncertainties, the company noted in its annual report that. “Geopolitical tensions remain unabated, worldwide inflation remains high, interest rates show tendencies to rise, and the U.S. dollar continues to strengthen,” the company said. “Pakistan’s external environment is therefore facing increasing challenges.”
Recent floods caused by abnormally heavy monsoon rains have adversely affected Pakistan’s important minor crops, Hi-Tech noted, which may impact the economic outlook through a drop in agricultural performance.
In its annual report, the company said its Hi-Tech Blending (Private) Ltd. wholly owned subsidiary company was in the process of expanding blending facilities and entering into the plastic packaging industry to diversify its operations. “Considering the current economic situation, HTL is consolidating its market operations and demand management with increased local blending and filling at our plant by shifting 90% of our imported product portfolio to the plant and also expanding our blending facilities,” the company said in the future outlook section of the annual report.
Consolidated net profit for the company, headquartered in Lahore, plunged to 12 million Pakistan rupees (U.S. $54,000) for the quarter ended June 30 – the fourth of its fiscal year – down 916% from Rs 143.5 million in the same period last year. For the fiscal year, the company’s net profit declined to Rs 617.4 million, compared to Rs 683.6 million. This decrease in fiscal year profit was mainly due to incorporation of a super tax imposed under the country’s Finance Act, 2022 and certain deferred tax liabilities recognized by the company, CEO Hassan Tahir said in his CEO’s Message in the annual report.
Net sales revenue for the fourth fiscal quarter went up 109% to Rs 6.9 billion, compared to Rs 3.3 billion. Full fiscal year net sales rose 67% to Rs 17.7 billion, up from Rs 10.6 billion. Consolidated results combine the results of both Hi-Tech Lubricants and its Hi-Tech Blending (Private) Ltd. wholly owned subsidiary.