Hi-Tech lubricants keeps the engine running, slashes losses by 88%

February 26, 2025 (MLN): Hi-Tech Lubricants Limited (HTL) significantly reduced its net loss by 88% for the half-year ended December 31, 2024, posting a Rs40 million loss compared to Rs350mn in the same period of 2023.

Earnings per share (EPS) improved significantly, with the loss per share reduced to Rs0.29 compared to Rs2.51 in the same period last year.

HTL's gross revenue from contracts with customers surged to Rs17.6 billion, reflecting a robust 55% increase compared to Rs11bn in the previous year.

The company attributed this growth to higher sales volumes and increased market penetration.

Net revenue, after accounting for discounts and sales tax, rose significantly by 74% to Rs16bn, up from Rs9bn in 2023.

Despite the substantial revenue growth, HTL faced an increase in the cost of sales, which climbed 77% to Rs15bn from Rs8bn in the prior year.

Consequently, gross profit stood at Rs1bn, reflecting a 47% year-on-year increase.

Operating expenses witnessed an upward trend, with distribution costs soaring by 81.5% to Rs623mn, and administrative expenses rising by 15% to Rs505.6mn.

However, other income nearly doubled, increasing by 89% to Rs177mn, contributing positively to the company's financial performance.

HTL reported a profit from operations of Rs382.7mn, a remarkable 101% increase from Rs190mn in the same period last year.

Finance costs, however, decreased by 20% to Rs327mn, helping mitigate overall losses.

The company also recorded a levy expense of Rs81mn, up 25% from the prior year's Rs65mn.

Profit/(loss) before taxation and levy stood at Rs55mn, a significant turnaround from the Rs220.6mn loss reported in 2023.

However, after incorporating taxation expenses of Rs14.5mn, the net loss for the period settled at Rs40mn.