Gulf Oil records 25% revenue growth in Q3 crossing Rs600cr first time ever for any quarter; Stock up 2%

10 Feb 2022 , 09:32 AM

Gulf Oil Lubricants India Limited, a Hinduja Group Company, has achieved a net revenue of Rs601.82cr during the quarter ended December 31, 2021, a growth of 25% yoy  as against net revenue of Rs481.86cr in the quarter ended December 31, 2020.

There was however 8% yoy decline in Profit After Tax (PAT) at Rs58.63cr in Q3FY22 as against PAT of Rs64cr in Q3FY21.

During Nine Months period ended December 31, 2021, the company has achieved net revenue of Rs1,552.71cr and PAT of Rs147.68cr as against net revenue of Rs1,134.77cr and PAT of Rs140.30cr respectively for the nine months ended December 31, 2020.

At around 9.26 AM, Gulf Oil Lubricants India Ltd was trading at Rs486.95 per share up by Rs10.4 or 2.18% from its previous closing of Rs476.55 per share on the BSE.

The company continued to report very good revenue growths for the quarter at 25% and for the nine months period at 37% in spite of retail market sentiments being weak during the 3rd quarter with excellent growth coming from the Industrial/B2B segment, OEM Franchisee Work Shops (FWSs) and from customers in the infrastructure sector. B2C also saw good volumes in Diesel Engine Oils for Commercial Vehicles and Passenger Car Motor Oils, as the Company has increased market share in all these segments.

On a high base of last year same quarter when retail markets had seen a lot of pent-up demand and costs were lower, the company performed relatively better across all the B2B segments (Direct Industries, Infrastructure customers, Industrials) and our OEM related sales (Gulf has a tie-up with more than 20 OEM's across segments), which has achieved excellent growth as servicing /oil change requirements in workshops increased. In the retail bazaar segment, as mentioned earlier, growths were achieved in the Commercial Vehicle Oil (CVO) and Passenger car motor oil (PCMO) segments.

The Agri and Motor Cycle Oil (MCO) segment in the bazaar was subdued as compared to last year due to lower farm production & the rural economy slowdown. The company has undertaken various targeted BTL, distribution & customer acquisition initiatives to grow and retain its consumer bases in all key segments and to set up the platform to further improve sales in the upcoming months/quarters.

As a majority of employees got fully vaccinated, the company's sales team is back in the market places and customer sites, while making sure they take all necessary health & travel precautions.

Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India Ltd., said, “Facing the many challenges in Q3, it has been quite heartening for us to deliver highest quarterly revenues ever and achieved market leading growths given the environment currently prevailing. With demand conditions continuing to improve in all B2B /OEM segments & some of the B2C segments, Our initiatives gave us good market share gains on the back of improved manufacturing sector and infrastructure sector related consumption growths.”

He added, “the pricing actions taken in earlier quarters fructified, leading to an excellent top line growth but as input costs impacts still persists with inflationary trend across various cost items, further fuelled by continuing global supply chain disturbances, margins are yet to fully catch up to our targeted levels. Our focus on continuing with our segment focused initiatives with some help coming from stabilizing key input costs gives us the visibility of improving our performance going forward.