Gulf Oil Profit Soars 29% in Q1: Revenue Up 9%

Mumbai, Aug 6 (PTI) Lubes maker and Hinduja Group firm Gulf Oil Lubricants India's net profit rose 29 per cent to Rs 88.02 crore in three months to June over the same period last year, the company said on Tuesday.

Gulf Oil Lubricants India had posted a net profit of Rs 68.30 crore in the first quarter of FY 2023-24.

Revenue from operations for the reporting quarter stood at Rs 885.07 crore, up 9.04 per cent from Rs 811.71 crore in Q1FY24, it said.

It also said that the company delivered a higher EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 116.24 crore in the previous quarter as against Rs 92.78 crore, registering a year-on-year growth of 25.28 per cent in the corresponding quarter of FY24.

The EBITDA margin during the period grew 170 basis points at 13.13 per cent, from 11.43 per cent last year, within the guided range of 12-14 per cent as the company increased investment in brand and customer-centric activities, Gulf Oil Lubricants India said.

"Our first-quarter performance reflects our continued actions towards sustainable and profitable growth. We delivered industry leading top-line and bottom-line growth with revenues higher by over 9 per cent year-on-year in Q1 and PAT up 29 per cent YoY. Emphasizing premium products across segments and effective input cost management, we achieved improvement in gross margins resulting in 25 per cent growth in EBITDA at 13.13 per cent of revenue," said Manish Gangwal, CFO, Gulf Oil Lubricants India Ltd.

Going forward, he said, in-spite of global uncertainties, the company remains focussed on margin management through prudent cost controls and improved product/segment mix, enhancing profitability and maximizing shareholder returns.

The company said it sustained its growth momentum, achieving a quarterly volume growth rate 2x that of the industry, which was mainly driven by growth in B2C channel with passenger car oils and agri products leading the pack and strong double-digit growth in B2B Industrial segment.

The quarter saw continued strong growth in B2C distribution, resulting in good growth in both commercial and personal mobility segments while certain segments like Infrastructure have grown slightly slower in Q1 due general elections and heatwave challenges in parts of India, it said.

"Our lubricants volume grew 2x the industry rate and it was evident across major segments, with the B2C and Industrial segment both doing well. Looking ahead, we aim to drive industry leading volume and revenue growth, generating more resources to invest in our brand and focus on premiumization," said Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India Ltd.

The company remains confident in the medium-to long-term potential of the Indian lubricants sector and with its strong brand, execution capabilities, extensive distribution network and strong relations with its OEM partners and B2B customers, "we are well-positioned to capitalize on industry opportunities", Chawla said.

"We are also committed to capitalizing on opportunities in the EV value chain with our strategic investments in the e-mobility space to transform and achieve significant growth in the next 4-5 years," Chawla stated.