Covid-19 takes a toll on Gulf Oil's Q4 earnings; PAT drops 24% yoy, impacts lubricants demand

The company says, Q4 PAT was impacted by lockdown closure.

Jun 18, 2020 01:06 IST India Infoline News Service

Gulf Oil Lubricants India
The Hinduja Group-backed Gulf Oil Lubricants witnessed a 24.45% decline in net profit at Rs35.94cr in March 2020 (Q4FY20) quarter from Rs47.57cr a year ago same period. The company informed that Q4 PAT was impacted by lockdown closure.

EBITDA was at Rs55.4cr in the quarter, down by 25.34% compared to Rs74.20cr in Q4FY19.

Revenue meanwhile was lower 17.54% to Rs359.68cr in Q4FY20 against Rs436.20cr in Q4FY19.

For FY20, the company's net profit at Rs202.52cr was up by 13.92% yoy, on the other hand, revenue declined by 3.65% yoy to Rs1,643.50cr in the fiscal.

In its release, Gulf Oil said, "The lubricants industry faced many challenges during the year due to the major automotive industry slowdown for new vehicles production/sales coupled with overall weaknesses in the economy across sectors, which impacted the lubricants market demand and usage levels."

Further, the company said, liquidity pressures in the trade also added to these lower demand levels as seen in FY20.

It added the OEM factory fill volumes for the company was directly impacted by this de-growth in vehicle production, particularly commercial vehicles which fell as much as 50-60% during the year versus last year.

At around 1.08 pm, the company's stock is trading at Rs627 per piece up by 0.92% on Sensex.

The stock has touched an intraday high and low of Rs668 per piece and Rs600.10 per piece respectively.

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