Gulf Oil Lubricants

Strong volume growth

Feb 14, 2019 10:02 IST capital market

Gulf Oil Lubricants clocked strong volume growth across business segments to achieve net sales of Rs.462.02 crore and profit after tax (PAT) of Rs. 49.79 crore in during quarter ended December 2018. On year on year (YoY) basis, Net Sales increased by 29.80% at Rs. 462.02 crore from its base of Rs. 355.95 crore in previous year December quarter. On Nine monthly basis, the company achieved a net sales of Rs.1269.60 crore and profit after tax of Rs. 130.21 crore. With Net Sales of Rs. 958.95 crore in previous year December period, year on year growth in net sales in nine months at 32.39%.

The company recorded a volume growth of around 20% in its core business during Q3FY19 (including non-regular institutional order executed in Q3, volume growth is 34%). There has been robust double digit growth across all product categories with personal mobility continuing to deliver 3-4x industry growth. This augurs well as the Q3 growth follows a strong volume growth achieved by the company in the first half of the year with YTD Volume growth at 32%. Retail volume growth marginally moderated due to price increases effected during the quarter, however, sales to OEMs, Infrastructure customers and Industrial segments showed strong upswing supported by excellent growth in exports. A significant development in this segment was the inking of the agreement between Tata Motors and Gulf Oil for the launch of a co-branded lubricant range for the passenger vehicles segment in India. The IMF segment registered a healthy growth in volumes riding on their association with the strategically important Krishnapatam Port.

The robust core volume growth of 20% achieved during the quarter reflects well on the companys strategies. Our continued performance delivering more than 3x Industry growth rate and Q3 EBITDA growth rate of 18% YoY assures us that our focus of getting market share with stable margins is yielding results. The stability of the INR and crude prices augurs well for us going forward as we continue to show strong performance in all key product and customer segments, said Mr. Ravi Chawla, Managing Director, Gulf Oil Lubricants India Limited.

The Board of Directors of the company have declared an Interim Dividend of Rs. 4.50 per share (225% on a Face Value of Rs.2 per share).

Quarterly Results

For the quarter ended December 2018, Gulf oil Lubricants reported 30% increase in net sales at Rs 462.03 crore as against Rs 355.95 crore in the quarter ended December 2017. The operating profit margins of the company fell 150 bps to 15.8% leading 18% increase in operating profits to 72.93 crore.

Cost of raw material consumed as a percentage to net sales rose 230 bps to 52.3% from 50% in corresponding previous quarter and purchase of stock in trade rose 1960 bps to 27%. Employee benefit expenses fell 70 bps to 5.4% while other expenditure decreased 340 bps to 21.4%.

Other income rose 2% to Rs 7.41 crore leading a 17% increase in PBIDT to Rs 80.34 crore. Interest cost was credit of Rs 2.31 crore compared to interest expense of Rs 1.3 crore while depreciation increased 154% to Rs 5.96 crore. The resultant PBT increased 18% to Rs 76.69 crore. The company reported a tax expense of Rs 26.89 crore compared to tax expense of Rs 22.68 crore in the corresponding previous year period resulting 17% increase in PAT to Rs 49.79 crore.

Nine months ended results

For nine months ended December 2018 Gulf oil Lubricants reported 32% increase in its net sales to Rs 1269.6 crore compared to corresponding previous year period. The operating profit margins fell by 160 bps to 16.5% resulting 21% increase in operating profit to Rs 208.85 crore. Other income was up 9% at Rs 20.75 crore. Interest costs rose 118% to Rs 12.26 crore and depreciation was up 146% at Rs 16.5 crore. As a result PBT rose 12% to Rs 200.51 crore. The effective rate of tax increased to 35.1% compared to 34.7% in the corresponding previous year resulting into 11% increase in PAT to Rs 130.21 crore.

The scrip closed Rs 884 at BSE

Gulf Oil Lubricants: Results

 

Particulars1812 (3)1712 (3)Var (%)1812 (9)1712 (9)Var (%)1803 (12)1703 (12)
Net Sales462.03355.95301269.60958.95321332.261086.79
OPM (%)15.817.316.518.017.716.4
Operating Profits72.9361.5918208.85172.8321235.72177.81
Other Income7.417.23220.7519.02926.1020.35
PBDIT80.3468.8217229.60191.8520261.82198.16
Interest-2.311.30LP12.605.771188.539.82
PBDT82.6567.5222217.01186.0817253.29188.33
Depreciation5.962.3515416.506.7214610.437.25
PBT76.6965.1718200.51179.3612242.86181.08
Tax Expense26.8922.681970.2962.171384.3063.53
Net profit49.7942.4917130.21117.2011158.56117.56
EPS* (Rs.)40.034.134.931.431.823.6
*Annualised on Equity Share Capital Rs 9.9581 crore; Face value Rs 2
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database

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