Gulf Oil Lubricants India Q1 PAT grows to Rs 68.30 crore

Gulf Oil Lubricants India reports Q1 results

Lubes maker Gulf Oil Lubricants India on Thursday reported a 20.8 percent growth in standalone Profit After Tax (PAT) at Rs 68.30 crore in the June quarter. The Hinduja Group company had posted a standalone PAT of Rs 56.53 crore in the first quarter of the previous fiscal, according to a statement.

Net revenue for the quarter grew 14.90 percent to Rs 811.71 crore. The company said it achieved record revenues for the quarter in relatively challenging conditions in the after-market and the growth was led by the B2B and Infra segments as well as the OEM franchisee workshop (authorised service) channel.

"During June'23 quarter, the company witnessed a robust revenue growth of 15 percent and PAT growth of 23 percent on the back of sequential margin improvements and easing of forex volatility, which paved the way for higher brand investments by leveraging our brand assets during IPL season," Ravi Chawla, Managing Director & CEO of Gulf Oil Lubricants India Ltd, said.

There was some softening in offtake by key OEMs for factory fill and in agri segments, Gulf Oil said, adding that the export volumes also grew double-digit during the first quarter.

The revenue growth has been even higher due to a better product mix being sold with an enhanced focus on personal mobility and the premium synthetic segment, according to the company.

"While few segments are still facing softer demand conditions, B2B continues to achieve double-digit growth for us. Our distribution reach is continuously on the rise and that creates a strong foundation for our market share gain strategy," he said.

The quarter witnessed some ease-off in input costs and the rupee stabilising, which helped garner better material margins while also resulting in some cooling off, in the end, pricing for customers, the company noted.

"Our robust cash generations enable us to look for opportunities in the emerging fields of EVs and other adjacencies and exploring areas where Gulf can play a key role basis synergies with our current strengths and future strategies," he added. Going forward, continuous margin management actions and growing faster remain key focus areas for the company, it said.