Gulf Oil Lubricants India Ltd Management Discussions.

Economic Overview

Global Economy

With the COVID-19 pandemic wreaking havoc on human life across the globe, FY 2020-21 has been a watershed moment in modern history. It has significantly affected our social, economic, and healthcare infrastructures. Moreover, the pandemics impact exacerbated the global economic slump in 2019. As a result, global GDP declined by 3.3% in 2020, with most major economies on the decline. China was the only major economy to grow in 2020, though at a much slower rate of 2.3%. Without the rapid and coordinated response from central banks and governments, the economic turmoil could have been substantially worse; though, this varied across countries. The expansion of central banks balance sheets as well as the supportive measures made it possible to fund and support private and public consumption. This support has been crucial in the slow recovery witnessed in the last two quarters of the calendar year, compared to the significant contractions experienced in the first two quarters. Commodity prices have risen rapidly in the last quarter of FY_2021-21 owing to a sequential improvement in global trade and favourable liquidity circumstances. Large-scale disruptions in the global supply chain have aggravated the situation, posing significant problems in terms of shipping line capacity and container availability.

Indian Economy

The Indian economy was stressed with the nationwide lockdown beginning at the end of March 2020 and halting business activities for the majority of April and May 2020. The Reserve Bank of India (RBI) continued its accommodative monetary stance by bringing key repo rate and reverse repo rate to 4% and 3.35%, respectively, with the aim to provide monetary stimulus and support economic stability. The fiscal and monetary stimulus provided by the government and RBI proved instrumental in the recovery of the economy. Following a significant drop in the first two-quarters of FY 2020-21, Indias real GDP increased by 0.4% y-o-y in the October-December 2020 quarter. The

Indian economy grew by 1.6% in the fourth quarter, recording a minor pickup in growth amid the second wave of the COVID-19, which dampened Indias rate of recovery. For the full fiscal year, the economy shrunk by 7.3%. The recovery, on the other hand, is mainly focused on the formal economy. Informal players, particularly Micro, Small, and Medium-sized Enterprises (MSMEs), disproportionately got impacted across various industries. The recovery has been V-shaped, as demonstrated by quarter-on-quarter GDP growth, with a sustained resurgence in high-frequency indicators such as power demand, E-way bills, GST collection, steel consumption, and so on. GST collections reached pre-COVID monthly levels following unlocking of industrial and commercial activity. Imports contracted more sharply than exports, and foreign exchange reserves were at levels covering 18 months of imports. Infiation, mainly driven by food prices, remained above 6% for much of the year. Given the resurgence of the virus as also its newer variants emerging and the spread of infections, a lot will depend on how the pandemic plays out. Many states have re-imposed restrictions on business activities, leading to lower demand conditions and supply chain disruptions once again. The business challenges posed by inflationary pressure and uncertain market conditions would highlight the importance of flexibly managing the business and altering operational priorities to suit changing market conditions.


According to International Monetary Fund (IMF), the global economy is projected to grow at 6% in 2021 and 4.4% in 2022. This recovery is uneven, with significant recoveries in certain major economies, most notably the United States, owing to substantial fiscal support amid high vaccine access. Global output will be around 2% below pre-pandemic predictions by 2022, and per capita income losses from the previous year will not be fully recovered in about two-thirds of emerging markets and developing economies (EMDEs). Significant downside risks exist, including the prospect of large COVID-19 waves in the context of new virus variants, as well as financial stress due to high EMDE debt levels. More equitable vaccine distribution is required to control the pandemic on a global scale, particularly in low-income countries.

Overview of the IMF World Economic Outlook Projections

Particulars 2019 2020 2021P 2022P
World Output 2.8 (3.3) 6.0 4.4
Advanced Economies 1.6 (4.7) 5.1 3.6
United States 2.2 (3.5) 6.4 3.5
Euro Area 1.3 (6.6) 4.4 3.8
Emerging Market and Developing economies 3.6 (2.2) 6.7 5.0
China 5.8 2.3 8.4 5.6
India 4.0 (8.0) 10.5 6.9
Russia 2.0 (3.1) 3.8 3.8
Brazil 1.4 (4.1) 3.7 2.6
South Africa 0.2 (7.0) 3.1 2.0

Source: GoI Economic Survey-2020-21, IMF and World Economic Outlook, June 2021

The vaccination drive, which began in the last quarter of FY 2020-21 across major economies, including India, has boosted optimism for long-term recovery in global economic activity. To support the economys encouraging indicators, almost all major central banks have pledged to continue their accommodative monetary policies. Economic growth is likely to rebound substantially in FY 2021-22, owing to the base effect on the global and local fronts. The economic recovery is supported by the initiation of a mega vaccination drive with hopes of a robust growth in the services sector and in consumption and investment. The fundamentals of the economy remain strong with the gradual scaling back of lockdowns. The astute support of the Atmanirbhar Bharat Mission has placed the economy firmly on the revival path. India is expected to emerge as the fastest growing economy in the next two years as per IMF.

Industry Overview

After the United States and China, India is the worlds third-largest lubricant market. It is also one of the worlds fastest-growing lubricant markets. About Gulf Oil Lubricants India Limited

15-20 organised players in Indias lubricant market and public sector oil marketing companies cater to a significant portion of the market with leading multinational and private domestic companies constituting the rest of the market. They have been swiftly building their brand and scale by launching innovative products and upgrading their services. According to a Mordor Intelligence report, the Indian lubricants market was estimated at over 2,610 kilotons in 2020 (including process oils), and the market is expected to grow at a CAGR of more than 2-3% over the forecast period (2021-2026). The automotive segment dominated the market in the country with more than 50% share by end-user industry in 2020. The lubricants sector in the country suffered a negative impact in 2020 as a result of the COVID-19 in the first half of the year. Due to the lockdowns during the year, production in various industrial sectors had been halted, and plants were temporarily shut down. This, in turn, affected the demand for lubricants in 2020. The automobile industry saw a y-o-y sales decline of 13.6% and registered cumulative sales of 18.6 million units. The aftermarket also shrunk due to lockdown - induced closures. As a result of all these headwinds, the lubricants market is estimated to have degrown by double digits in volumes during the year as compared to the previous year.

Future Growth Enablers

• Growing GDP and domestic consumption

• Growth in the automotive industry

• Resumption in vehicular movement post lockdown

• Strong prospects of the rural economy

• Uninterrupted use of tractors throughout the year

Overview of Indias Lubricant Industry

• Low per capita vehicle penetration in India

• Rising brand consciousness

• Advancement of engine technology

• Accelerated investments in infrastructure building

• Implementation of various industrial reforms + emission norms

• Recent policy interventions to attract manufacturing bases in India

• Growing prominence of bio-lubricants is likely to act as an opportunity

Automotive Segment

Of the overall lubricants market in India, the automotive lubricants segment constituted a large pie and is projected to growth substantially by in the next 5 years. Automotive lubricants primarily cater to the segments of Commercial Vehicles (CVs), Passenger Vehicles (PVs) and two-wheeler segments. Diesel Engine Oils (DEO) contribute the most to the automotive lubricant market, followed by Motorcycle Oils (MCO) and Passenger Car Motor Oils (PCMO).

Growth in automobile production and increasing sales of passenger cars and two-wheelers are driving demand for automotive lubricants in the country. The two-wheeler segment led the market in FY 2019-20 with a share of 36.97%, and the trend is likely to continue through FY 2025-26. Expanding production of two-wheelers and continuously expanding the two-wheeler fleet are among the prominent factors aiding the growth of this segment in India.

Management Discussion and_Analysis

Moreover, increasing consumer awareness towards utilising better-quality lubricant and implementing Bharat - VI and Automotive Mission Plan 2016-2026 are further expected to fuel the Indian automotive

Auto Industry Domestic Sales Performance

(Sales Figures in ‘000)

Category April to March
FY18 FY19 FY20 FY21
PVs 3,289 3,377 2,774 2,711
CVs 857 1,007 718 569
3Ws 636 701 637 216
2Ws 20,200 21,180 17,416 15,119
Tractors 711 788 709 899
Construction Equipment 68 69 74 84

Source: Society of Indian Automobile Manufacturers (SIAM), Indian Brand Equity Foundation (IBEF)

In FY 2020-21, there was a de-growth in sales of most of the segments compared to the previous years: (-) 2.24% for Passenger Vehicles with sales of 27.11 Lakh units; (-) 13.19% for Two-Wheelers with sales of 151.19 Lakh units; (-) 20.77% for Commercial Vehicles with sales 5.69 Lakh units and (-) 66.06% for Three-Wheelers with sales of 2.16 Lakh units. However, there was a growth in the number of tractor and construction equipment sales. This was due to the uninterrupted harvesting carried on by farmers and resumption of construction processes post lockdown. On the sales front, a structural slowdown in the industry even before the pandemic and changing emission norms combined with the impact of COVID-19 in 2020-21, retrograded all vehicle segments back by a few years. The prevailing lockdown has also led to uncertainty in the value chain with respect to supply of semiconductors and other raw material. Growing investments in the infrastructure sector and other strategic initiatives by the Government of India are expected to boost the construction sector in the country. The government initiatives, such as housing for all, smart cities, and major infrastructure projects, lead to the usage of heavy-duty vehicles and further consumption of a larger quantity of lubricants. The increasing average age of passenger cars and the growing urban population in developing countries are expected to drive growth of engine oils and provide an opportunity for the refill market. The old vehicle scrapping policy will help the sector to revive faster. Although the Government of India has introduced policies for the EV sector, the adoption of the EVs depends on multiple factors such as infrastructure challenges, etc. Companies are ramping up investments, developing electric vehicles in-house and OEMs are open to collaborations, thus, reducing the speed-to-market and maintaining capital efficiency. Part suppliers are attempting to be segment agnostic, developing components for ICE and EV products. As we navigate through this new sector and look forward to developing it in India, the acceptance of EVs still remains ambiguous in the coming years. Despite this, the lubricant market is expected to remain resilient to EVs for a long period despite growth of the EV sector due to the multiple tailwinds in most sub-segments.

Industrial Segment

Lubricant products, such as hydraulic _uids, metal working _uids, and industrial greases and gear oils, find application across multiple industries like construction, manufacturing, textile, power generation, mining, food processing, light-heavy engineering, marine operations, and metal working. Unlike the automotive segment, these products are largely business-to-business in nature. Demand for industrial lubricant depends on the overall growth trends of the economy and industrial production.

The government has been taking the initiative to increase the renewable energy infrastructure, including wind energy. Power generation from wind energy is growing rapidly in the country, with a consistent increase in installed capacities of wind turbines every year. Subsequently, with the growth in wind energy infrastructure, the demand for industrial lubricants, such as gear oils, and grease, is expected to increase in the country. The growing construction and mining activities have increased the usage of heavy equipment in the country. With the increased use of such equipment, the demand for industrial lubricants is also growing in the country. With growing modernisation in the sector, the demand for agricultural equipment has also been on the rise in India.

Infrastructure Segment

In this segment, lubricant products are used in both on-highway vehicles as well as off-highway construction equipment. Prospects of this segment depend on the progress of the infrastructure sector in India. The infrastructure sector has become the most significant focus area for the Government of India. India plans to spend $1.4 trillion on infrastructure during 2019-23 for the sustainable development of the country. The government has further suggested investment of 5 million crores ($750 billion) for railways infrastructure from 2018-30. India and Japan have joined hands for infrastructure development in Indias Northeast states and are also setting up an India-Japan Coordination Forum for Development of Northeast to undertake strategic infrastructure projects for the region.

Impact of Crude Oil and the Exchange Rate Movement

We depend on crude oil as our raw material and the price of our base oils is correlated to the movement of crude oil prices over medium to long term. While the rupee strengthened after initial fall in Q1 of last year, crude oil prices have been on the rise after falling sharply to multi year lows in Q1 last year. This led to a drop in base oil costs for first half of last year while the prices hiked significantly from the third quarter.

Post lockdown, we saw a significant growth in sales volumes as vehicular movement resumed and people chose private modes of transport over shared transport. However, while the sales volume remained high, the increase in the base oil prices led to decrease in the profit margin which had to be offset by making necessary increases in the price of products both in our B2C and in B2B during second half of the year. The prices of crude oil are expected to rise further in FY 2021-22. As the economy attempts a rebound, many industries will likely face headwinds in 2021. Rapid vaccination drive, resumption of air traffic and vehicular movement, investment enhancing measures by the government and better external demand provide an upside to the baseline growth path. Meanwhile, surge in infections, new mutants, deviation of the south-west monsoon from the baseline assumption of a normal monsoon, higher crude oil and non-oil commodity prices and global financial market volatility impart downside risks to the baseline growth path. The evolving COVID-19 trajectory and progress on vaccination remain the key drivers of economic activity and inflation, globally and in India.

Crude and Exchange Rate Movement

Exchange rate Brent Crude Oil
($ vs Rs.) ($/bbl.)
April-20 76.23 18.38
May-20 75.71 29.38
June-20 75.76 40.27
July-20 74.91 43.24
Aug-20 74.58 44.74
Sept-20 73.52 40.91
Oct-20 73.56 40.19
Nov-20 74.21 42.69
Dec-20 73.66 49.99
Jan-21 73.11 54.77
Feb-21 72.83 62.28
March-21 72.78 65.41

Company Overview

Gulf Oil Lubricants India Limited (Gulf Oil), part of the Hinduja Group, is among Indias top three lubricant companies in the private sector. We have classified our business under three segments, namely automotive, industrial and exports. We market a wide range of automotive and industrial lubricants, greases, and 2-wheeler batteries among others. The Gulf Oil brand is owned by our parent company, Gulf Oil International with a brand presence extending to more than 100 countries and is known for its rich history and association with the world of motor sports. The Gulf Oil International Groups core business is manufacturing and marketing an extensive range of more than 400 performance lubricants and associated products for all market segments. We have a robust and widespread distribution network in India, spanning both physical and digital platforms. It has two state-of-the-art plants in India—one in Silvassa and the other at Ennore, Chennai. These plants manufacture quality products, which cater to all customer segments in addition to replacement demand.

Competitive Strengths

• 100-year strong legacy in the fuel and lubricant sector - globally

• Fastest growing lubricant player by consistently outperforming the industry growth rate y-o-y over the last decade

• Our strong distribution network helps us reach the remotest corners of the country

• Comprehensive, wide and updated product portfolio across automotive, industrial, and marine applications with approvals from bodies like API, JASO, ACEA and leading global OEMs

• Strong business model and innovative strategy ensure value creation for all stakeholders

• Robust production and distribution with a pan-India network

• Superior technology and ever-evolving innovations to produce world-class lubricants

• Pioneer of the ‘long drain interval value proposition, helping us establish strong positions in Diesel Engine Oil and 2-Wheeler Motor Oil segments. Long Drain products help conserve environment also by lasting longer

• Collaborations (long standing) with top OEMs and B2B customers like Ashok Leyland, Mahindra, Swaraj, Bharat Benz, Bajaj, Schwing Stetter, Piaggio, L&T and many more

• The ‘Gulf Oil brand enjoys a position among the top 3 lubricant brands with respect to brand awareness, purchase consideration and other parameters

• Rich history and association with various esteemed sports associations such as Chennai Super Kings (CSK), Manchester United Football Club

Manufacturing Capabilities

Silvassa plant

• Capacity: 90,000 KL per annum

• AdBlue manufacturing capacity of 12,000 KL with VDA license from QMC Germany

• Key certifications include

- ISO 9001:2015

- ISO 14001:2015

- ISO 45001:2018

- IATF 16949:2016

• World-class fully automatic PLC enabled blending operations

• High-speed end-to-end fully automatic Filling Machine

• Fully automatic Blow-Moulding machines including Recycler

• Fully Automatic Storage and Retrieval System (ASRS)

• Robust Safety & Disaster Management Systems and supports

• Advance and fully equipped Quality Control laboratory

• Installed and commissioned rooftop solar panels

• Plant and exports approved by many Indian and global OEMs

Chennai Plant

• Capacity: 50,000 KL

• Key certifications include

- ISO 9001:2015

- ISO 14001:2015

- IATF 16949:2016

- ISO 45001:2018

- IGBC Gold Certification

• AdBlue manufacturing capacity of 18,000 KL to be commissioned in 2021-2022

• State-of-the-art blending technology from ABB France— Simultaneous Metered Blender (SMB), Automated Batch Blender (ABB), completely piggable manifold, Drum Decanting Unit (DDU)

• Advanced ASRS

• A high-tech fire_ghting and disaster management system

• 100% provision for solar energy for manufacturing, Grey water recycling, rainwater harvesting and natural lighting throughout the day

• New global R&D Centre—Gulfs biggest facility globally

• Customer Experience Centre—the first of its kind in India

• Plant approved by many Indian and global OEMs

Gulf Oil: Opportunities and Threats

Business Opportunities Threats
Automotive a) Robust prospects of Indias automobile sector and overall economic growth a) Highly competitive sector
b) Adoption of new emission norms and enhanced focus on fuel efficiency b) Possibility of aggressive pricing and discounts being offered by competitors
c) Evolving technology as well as customer requirements c) Sudden and sharp volatility in prices of key raw materials
d) Significant potential to ramp up rural penetration of automobiles d) Prolonged slowdown in domestic automobile sales
e) Scope to improve our market share in the PV and tractor segments e) Growth of EV sector might lead to slower growth in the lubricants sector
f) Expansion of our reach across various channels and geographies
g) Development of innovative products to adapt to changing market requirement
h) Shift in customer preferences from public transport to private transport
i) New-age customers with an evolving mindset
j) Increased digitalisation helps in increasing speed and accuracy of operations while reaching a wider customer base
Industrial a) Scope to deepen share of wallet with existing customers and getting new customers – direct and via distributors a) Any slowdown in industrial activity or further increase of COGS can impact profitability
b) Opportunity to participate in the exponential growth of roads and infrastructure in India b) Slower growth of the infrastructure sector
c) Atmanirbhar Bharat will increase industrial push significantly c) Slowdown in Auto Ancillaries— our overall dependency being 30%
d) Opportunity for entire lubricant management at customers plants d) Future lockdown due to anticipated third wave can impact industrial production resulting in lower demand
e) New projects and one-time Initial Fill opportunities in both Direct and Indirect business e) Aggressive pricing strategy by competitors
Exports a) Potential to ramp up in existing markets and enter select attractive markets a) Unprecedented high volatility in the forex market
b) Chennai plant can cater to nearby countries more efficiently b) Highly competitive environment
c) Opportunities of exporting products branded by Indian OEMs

Business Review

The strength of our brand equity, innovative product offerings, network and teams passion has once again proved to be key differentiators that reflect in our continued growth. We showcased resilience through our performance with a strong volume growth of ~4% y-o-y, beating the industry once again during the year which has degrown. As we adapted and responded swiftly to changing conditions, all our product segments saw a growth as we progressed through the year. All key products under the B2C segment reported a growth as vehicular movement resumed post lockdown. Also, B2B and industrial segments supported sales growth. Personal mobility jumped 20% while factory fills reported significant y-o-y growth. Diesel vehicles contributed the highest at 37% to total volume while personal mobility share was 24% and industrial at 15%, rest being others. As the economic and industrial activities gained significant momentum and personal and commercial mobility levels improved, we were responsive and could quickly ramp up our supply capabilities and regain the rhythm of our production and supply chain to a large extent. Re-energising our supply chain and distribution strengths combined with our strong demand sensing strategies resulted in record-level volumes in key sub-segments, and the gap from average pre-COVID volumes reduced rapidly, aided by some pent-up demand. This helped us deliver record breaking quarters from Quarter 2 in an otherwise tough environment overall. In addition to our committed and dedicated supply chain network, our sales teams displayed exceptional resilience and responsiveness in catering to OEMs dealership network requirements and other B2B customers in the Industrial and Infrastructure space. On the one hand, existing OEM tie-ups witnessed healthy momentum, while on the other hand, we continued to add marquee names to this business. We entered into strategic partnerships with Ford, KIA, Hyundai, and S-Oil in the Automotive segment; Vedanta, Tata Steel, JSW, Milacron, Arcelor Mittal in the Industrial segment; Putzmeister and ACE in IMF segment; and Small Fleet and CNG in our Retail business.

Automotive Segment

Gulf has developed a wide range of engine oil, gear oils, greases and specialities for bikes, scooters, cars, light and heavy commercial vehicles and tractors.

Agri Business

Our Agri category of products grew in double digits during the year providing support to our overall volumes. We could capitalise on meeting the demand buoyancy in agricultural outputs in otherwise tough market conditions. COVID lockdowns less impacted the rural markets. Our initiatives in recent years to build a strong and focused approach to cater to rural distribution augured well in these times.

B2C Business

Barring PCMO, for which major metro cities are key markets, all other segments in the after-market saw a return to normalcy for the industry in H2 before 2nd wave started hitting again and for our B2C segment, all key product categories recorded good growth, majorly in MCO and CVO, where we managed to achieve double-digit growth.

Battery Business

FY 2020-21 has been a good year of growth for our battery business where we clocked in nearly Rs.80 crores of revenue (a growth of more than 50%) and a positive bottom line. We also strengthened our service infrastructure by introducing Gulf Battery Service Point—branded service outlets that would address the service-related requirements of the aftermarket. This new identity will aid brand awareness and strengthen our market confidence. 500+ service setups were placed across the network, including depots. On-time warranty settlement and new SOPs proved critical for maintaining product quality and settling warranty faster during the pandemic.

Training Programmes-responsiveness

We continued to engage with our channel partners and distributors in innovative ways during the year along with the regular programmes. Rigorous training was provided on the ‘new normal scenario through digital courses during the lockdown which helped us empower our workforce to capture the market as people resumed their daily operations post lockdown. We remained closely connected with them which helped us retain all our distributors and capture demand-supply gap opportunities in FY 2020-21.

Digital Initiatives-responsiveness

We made extensive progress on our plan to digitalise the value chain. Some prominent initiatives include integrating coupons on packs into QR codes to provide benefits directly into the mechanics accounts and plugging the leakages. Sales force automation was initiated by leveraging mobile apps integrated into our customer relationship management platform, Gulf Konnect. We also leveraged advanced digital systems such as SAP to strengthen our systems internally and create a single platform for all data storage. We communicated with our stakeholders using platforms such as MS Teams and various mobile applications which helped us communicate with them uninterruptedly without having to physically meet them.

Indra Renewables-Acquisition

We acquired a minority stake in Indra Renewable Technologies, UK, which operates in the EV space and makes chargers for home charging and other V2G (Vehicle to Grid) requirements. We will primarily focus on passenger car and light commercial vehicle residential charging segment with Gulf branded Indras smart chargers for Indian market requirements. We will also be evaluating opportunities in the two-wheeler segment with Indra going forward. With new technologies such as V2G chargers, which are already being developed by Indra, we plan to support the power requirements of individual homes as a backup. There exist considerable opportunities to form partnerships with potential microgrid solution providers in the future.

Brand-building Campaigns, Initiatives, and New Product Launches

Brand-building activities restarted selectively, focusing on social media usage, while considering the current context. #GulfkaCall, our campaign With Chennai Super Kings (CSK) and M. S. Dhoni, targeted trade, consumers, and mechanics, and received an excellent response on social media. Innovative programmes engaging our trade partners, influencers, and consumers alike, which leveraged our association with CSK during this seasons premier league, significantly contributed to the growth of Bazaar Sales. We also launched an exciting M._S._Dhoni tribute MCO pack. We launched season 2 of "SurakshaBandhan" for truckers through our collaboration with a leading radio channel partner. We distributed special, unique rakhis (containing soap strips during COVID) to more than 10,000 truckers across various transport locations. Even as truckers and truck associations appreciated this gesture, Gulf Oil was rewarded for ‘SurakshaBandhan season 1 (2019 campaign) at the prestigious WOW Awards Asia 2020 with two Golds and a Bronze for our agri-related brand property – Gulf Supreme Tractorotsav. We re-launched Gulf AdBlue EcoPro, for the Diesel Exhaust Fluid (DEF) product segment for BS-VI vehicles, which is seeing growth and traction in cleaner, more environment-friendly emission norms. A high-impact Diwali campaign – Start Mast Toh Din Zabardast featuring Hardik Pandya was introduced to strengthen the Gulf batterys digital presence during IPL and Diwali. The campaign highlighted the promise of great beginnings. While the campaign leveraged sports as a theme, the Diwali campaign celebrated Indian personalities who made a difference to the society, such as Jadhav Payeng, Rajgopalan Vasudevan, Juin Dutta, Dashrath Manjhi to name a few. We also re-launched our flagship brand of Motorcycle engine oil as Gulf Pride 4T Ultra Plus with an upgraded product formulation that delivers longer drain, faster pick-up and better protection, which is also BS-VI ready. The customer value proposition (CVP) has also been upgraded from ‘Insta Pick-up to ‘Consistent Insta Pick-up. Our #DhoniXDhoni features M. S. Dhoni in a conversation with his younger self from 2005, drawing a parallel between Dhonis consistent performance and the product providing consistent performance to the vehicles instant pick-up. Marking our 10 year journey with the IPL team Chennai Super Kings (CSK), we ran multiple activations and offers where fans were given special discounts on our products on match days and a chance to virtually meet their favourite team players.

In the CNG segment, we released value-added products for three-wheelers under the Gulf CNG Supreme+ brand and strengthened our presence in the coolant segment by introducing improved glycol-based coolants for the passenger car segment, Gulf Kool Guard G48. Our new digital campaign on Gulf Ultrasynth X Car engine oil, ‘Feel the smoothness, received great engagement on all our social media platforms. This year, due to limitations caused by the pandemic, we launched our highly appreciated and awarded Agri property ‘Gulf Supreme Tractorotsav online. We saw great participation from tractor owners who received insightful useful farming information from agri experts through this digital platform.

Automotive Segment Outlook

Improved rural demand, a favourable monetary policy outlook, and a supportive environment would be key enablers for demand recovery in the medium term. The improvement in auto sales will also prove to be instrumental as the COVID situation improves. We will continue to expand our distribution network in FY 2021-22, including relationships with leading e-commerce and other digital businesses. We will also continue to cultivate new strategic partnerships with OEMs in the future. The primary emphasis will be on cost optimisation and digitalising processes to protect EBITDA margins, among others.

Personal Mobility

In the post-pandemic world, a rising emphasis on social distancing brought about a change in customer behavior in the form of a growing preference for private vehicles over shared puclic transportation leading to growth in the purchase of compact cars and two-wheelers. Replacement demand is picking up, which bodes well for lubricant and battery products. Strong rural cash flow following a strong monsoon, financial stimulus by the government, and COVID-19s comparatively lesser impact in the semi-urban and rural markets are big positives. These elements bode favourably for our personal mobility segment. This segment accounts for ~22-23% of Gulf Oils sales, with two-wheelers commanding a majority share and is expected to grow further as consumers shift towards personal mobility. We are currently concentrating on expanding our market share in the passenger car segment. By maximising the potential of our existing and new distribution networks, we will continue to grow our two-wheeler battery business with a focus on significant growth in this sector over the next three to four years.

Commercial Vehicle

Gulf Oils Diesel Engine Oil (DEO) segment is divided into Commercial vehicle Oils and Agricultural sector. We benefited from a pick-up in demand in the agricultural segment (15% of the DEO segment). To capture the additional demand, we will leverage our partnerships with Mahindra and Swaraj. The CV segment, on the other hand, is yet to witness much demand recovery. Thus, DEO sales are likely to remain under pressure in the near term. However, the long-term prospects of this segment remain intact with gradual improvement in the construction and the infrastructure segment, stronger replacement demand, growing operational efficiency in transportation, logistics and supply chain activities and demand for BS-VI compliant vehicles. We are among the leading players in this segment and will continue to expand our market share. Our primary focus will be on developing unique, need-based products and expanding our distribution network. Similarly, AdBlue has been a prime beneficiary from the implementation of BS-VI norms.

Industrial Segment

We continued to strengthen our distribution network (direct and indirect distributors) to grow this business. Currently, our industrial network includes 200+ direct industry accounts and 50+ industrial distributors who supply Gulf Oils products to small and medium industries and users. The Inner Circle Distributor programme continued to grow at a healthy pace. Gulf Oils market share in the industrial business is estimated at 3-4%. As we have a relatively lower market share in this segment, we have identified this as a major focus area for the past few years We have stepped up efforts to cross-sell and upsell our products. Both industrial distribution and direct business channels have grown at impressive rates during the year. B2B Industrial segment showcased outstanding performance during the most challenging year.

Industrial Distributor Business

Our industrial distributor business witnessed a sizeable growth along with complete achievement of the business plan laid out for FY 2020-21. We gained 12 new distributors who contributed significantly to the volume of sales. We witnessed our highest ever collections despite of the pandemic. We successfully completed more than 200 hours of virtual training for our distribution channels partners.

Direct and OEM Business

Our Direct and OEM Business witnessed 74% growth y-o-y and 119% of FY 2020-21 business plan achievement. We gained new customers during the year who contributed sizeably to our sales volumes. Through the year, we managed to retain all OEM business while adding new businesses to our portfolio. We identified and have built a unique business opportunities pipeline, which will help in boosting future_growth. During the year, we also entered into a long-term strategic partnership with S-Oil Corporation, South Korea—one of the leading oil refining and lubricant manufacturing companies in Asia. We plan to exclusively manufacture and market their entire range of lubricants under the brand ‘S-Oil Seven for the Indian market. It is the first time that an S-Oil lubricant product has been manufactured outside of South Korea.

With a wide range of technologically advanced automotive products, S-Oil Seven has been a trusted brand for leading automakers such as Hyundai Kia, SsangYong, and other OEMs. It is exported to more than 60 countries in the world from South Korea. The launch of the S-Oil Seven lubricants brand will further strengthen the 15 year-long relationship in the base oil business in India and other Asia Pacific regions with Gulf Oil. Their strong and advanced portfolio in Passenger Car Motor Oil (PCMO) gives a very good opportunity to get additional market share in this segment.

Industrial Segment Outlook

We have a relatively low market share in the industrial segment and sees immense potential for growth across categories and sectors. Within the industrial segment, we are looking to expand our presence in the auto, auto components, manufacturing, and metals sectors. Over the next five years, we are exploring ways to expand existing products and increase the share of value-added items. The demand for special greases, metal working _uids, long drain hydraulic oil and synthetic oils will remain healthy in the future. We will concentrate on expanding our dealer network and improving our client base along with sector-specific products and services. This will facilitate stability and volume growth, and lead to an increase the total lubricant management contract for customers manufacturing plants. To capture market share in some of the high-end industrial segments.

Infrastructure, Mining, and Fleet Segment

The infrastructure, mining, and fleet (IMF) segment registered impressive growth during the year. This business continues to not only focus on top players in the industry but also foray into Tier-2 and Tier-3 cities of the country and the customer bases there. We have gained market share from peers, expanded into newer sectors, and are growing our large flagship accounts at a healthy pace. Gulf Oil has 500+ marquee customers in this segment, including industry heavy weights such as Larsen & Toubro, Dilip Buildcon, Punj Lloyd, Oriental Engineers, Shapoorji Pallonji, Kobelco, Putzmeister, Doosan Bobcat, The Robbins Company and Liebherr. We are consolidating our infrastructure business and expanding our reach. A significant growth driver for this business is the tie-ups with leading companies. We are also making large investments in technology to improve operational efficiencies to further enhance the service experience for customers.

Infrastructure, Mining, And Fleet Segment Outlook

The demand from the infrastructure sector is picking pace as work on projects is being recommissioned at many sites. Most of the segments in this business are classified as essential services and did not witness a significant direct impact from the lockdown. However, the unavailability of labour, ancillary, and other services that were needed to continue the business had some bearing on this segment. As the situation normalises, this segment will be among the early beneficiaries.

As we advance, favourable government policies to push infrastructure growth and improving economic activity will act as key catalysts for this sector. We will continue to focus on growing the wallet share of existing clients and adding new clients to the business. We have put in place dedicated teams to grow in each of these sectors, tap into all lucrative opportunities, and drive process efficiencies to achieve profitable and sustainable growth.

Exports Segment

We continued to focus on exports as an opportunity to grow volumes. We are currently exporting high-end products in the Personal Mobility segment to a few Southeast Asian countries. We collaborated with Indian automotive OEMs that have been exporting their vehicles to various continents to enable the export of lubricants approved by them to these countries. This resulted in us successfully expanding our export reach to ~25+ countries.

Exports Outlook

With the addition of capacity after commencing operations at our Chennai plant, our focus on exports is increasing. Exports of products are expected to expand along with Indian OEMs exporting their vehicles to various parts of the world.

Managing Risks in a Dynamic Business Landscape

Gulf Oil has a risk management policy that comprises corporate risk (strategic and residual risk), operational risk (specific business and functional risks, including economic and market risks), financial risk, human resources (HR) risk, legal and compliance risks, and so on.

The prominent risks and mitigation strategy is summarised in a table:

Risk Mitigation strategy Key stakeholders
Slowing demand in key business segments Gulf Oil is focusing on achieving an optimum mix of products and business segments to generate better margin and high growth. Business functions
Some of the segments we operate in are cyclical, exposing us to high volatility in demand. Overdependence on any of these segments, slowdown in demand, along with rising competitive intensity can affect our performance.
Constant upgradation in technology We track these developments regularly and responds to them swiftly. Our products imbibe superior and latest lubricant technology in line with global standards. Technology, Global R&D
Technological upgrades are disrupting businesses across industries with an increasing focus on achieving higher efficiency and launching environment-friendly products. Any delay in adapting to these trends can adversely affect our performance.
Rising prominence of electric vehicles Gulf Oil is increasing market shares across the core lubricant segments in India, including looking at higher growth rate and increasing specialty products in the bazaar market. We are also establishing a robust diversification strategy to capture opportunities related to allied products and electric vehicles value chain. Initiatives taken by Gulf Oil International to develop EV _uids and diversification into allied business areas will also help mitigate this risk. All stakeholders
Growing acceptance of electric vehicles around the world could have some bearing on demand for lubricants. In India, though, broad-based adoption and penetration of electric vehicles is still quite some time away given the issues around infrastructure for maintaining/charging them, high-cost, limited government funding and slower regulatory push. Our perspective is that the overall lubricant demand is sizable and will continue to grow in India. Our inability to diversify in a timely manner can put some segments of the business to long-term risk.
Volatility in base oil prices and the INR We have put in place a robust hedging policy designed by forex experts and we monitor closely our to make timely corrections, if needed. We are also increasing exports to partially have natural hedge. We have also established several options for sourcing raw materials and is focused on adding new vendors to keep pricing under check. Procurement and Finance teams
Sudden, adverse movements in crude oil prices and consequently in base oil prices could adversely affect the profitability of Gulf Oil. We have more imports as compared to exports and hence, we are vulnerable to adverse movements in the Indian Rupee.
Inability to maintain robust IT systems
Any delay on our part to maintain and upgrade high quality, timely and reliable MIS systems can affect our decision-making process. Delay in adopting digitalisation can impact customer satisfaction. We are adopting best-in-class, digitalised solutions across business segments to stay ahead of the curve and deliver superior service to our customers, enhance customer experience and impact customer choice_decisions. Information Technology department
Inability to keep teams motivated
Employees with low morale cannot contribute to our success. Besides, they also tend to change organisations frequently. Such a scenario can affect our ability to gain market share. Gulf Oil is committed to provide a growth-oriented environment for our people. We undertake several initiatives to motivate, retain and attract talent and have well-defined people policies in place. Board of Directors, HR department
Weakening of brand reputation
Weakening share of voice and fall in brand recall is a key risk and can affect our prospects. Gulf Oil invests continuously in strengthening our brands, improving brand scores, and creating high recall. We also undertake brand tracking exercises regularly. We strive to innovatively leverage our brand assets and brand ambassadors, in India and globally, to enhance brand visibility amongst customers. Marketing department


Risk Mitigation strategy Key stakeholders
Inability to comply with regulations and/or maintain high levels of governance We follow strict adherence to all applicable regulations and best-in-class governance practices. Board of Directors, Legal and Compliance and Finance departments
Any violation of regulations causes reputation risks and impacts our ability to do business, besides affecting valuations. Weaknesses in tracking regulations, enforcing compliance and audits can lead to breaches and loss of reputation.

Empowered Human Assets

We are committed to taking the necessary steps and activities to continue to provide a growth-oriented environment in which our employees may upskill and become future-ready. Employees imbibe our values through policies such as the Code of Conduct and awareness of the "Prevention of Sexual Harassment at Workplace Policy" (POSH). In FY 2020-21, there were no complaints of sexual harassment at work. We also consciously promote gender diversity, with women accounting for 6% of the overall workforce last year. We undertake regular communication through townhalls and various digital platforms. Our communication plan includes posters, danglers, team meetings and e-mailers. The employee intranet portal acts as a credible platform for employee engagement and connectivity. During the COVID-19 pandemic and subsequent lockdowns, employees safety was of paramount importance to us, and we have undertaken all required measures at our locations, including work from home for most employees at office locations. At the plants and warehouse locations, all protocols were followed to ensure a safe working environment. With IT systems and internet infrastructure already in place for employees, transitioning to a work from home environment during these times was smooth.

Embracing Digital HR Processes

The Employee Self Service (ESS) platform enables employees to conduct their daily business. ‘Align Strive Perform Inspire Reward Enable (ASPIRE), our web-based performance management system, enables managers and employees to conduct periodic role and performance reviews.

Capability Building

At Gulf Oil, capability building is an ongoing process. We develop and implement regular training programmes across different modes, such as classroom sessions via the Gulf Oil Training and Development (GOLD) Academy and also through different online training sessions. During the lockdown period, there was significant focus on imparting online trainings to employees across verticals and 522 man-hours of training were achieved between April and June 2020. Functional competencies are defined for all the organisational roles and integrated with various HR processes. Specific capability development programmes are also designed and implemented with the help of this competency framework. This framework helps us identify any gaps proactively and plan development interventions. We continue to train employees to implement ‘new ways of working, which boosts organisational sales and enables channel partners to implement processes smoothly. The development of internal trainers has also been a key focus area. The ‘new ways of working modules have been successfully driven by such internal trainers. A total of 2,112 man-days were recorded during the year for training. Specific post-programme initiatives are planned to sustain the capability-building initiatives. We plan to enhance productivity across the organisation through the new performance management system ‘ASPIRE to drive business growth.

Employee Stock Option Scheme (GOLIL ESOP 2015)

We believe that equity-based compensation schemes are an effective tool to motivate and reward eligible employees. These schemes create employee ownership, attract new talent, and retain the key resources in the organisation. They offer significant benefits to the employees. In view of the above, we have instituted the ‘GOLIL Employee Stock Option Scheme, 2015 for our eligible employees. We have granted options as per the following vesting schedule or as per modifications approved by the Nomination and Remuneration Committee from time to time:

Completion of tenure Total grant of eligible employees
1 year 10%
2 years 15%
3 years 15%
4 years 60%

The scheme now covers several critical positions below senior management as well. The options granted under the scheme shall be based on satisfaction of vesting conditions, which can thereafter be exercised, resulting in the allotment or issue of our equity shares.

Employee Relations

Employee relations at the Silvassa and Chennai plants remained cordial during the year and most of the issues were resolved through mutual dialogue. Our total workforce stood at 600+ during FY 2020-21.

Internal Control Systems and their Adequacy

Our internal control mechanism has been designed to provide accurate recording of transactions with internal checks and prompt reporting, adherence to applicable accounting standards, compliance with applicable statutes, policies and procedures, guidelines, and authorisations. Following the implementation of the Companies Act, 2013, we have complied with the specific requirements in terms of Section 134 (5)(e) of the Act, calling for the establishment and implementation of an Internal Financial Control (IFC) framework that supports compliance with requirements of the Act in relation to the Directors Responsibility Statement. The IFC framework document supports the evaluation of the operative effectiveness of the controls consistently.

Through our own internal audit department, we conduct periodic audits at all locations and functions based on the plan approved by the Audit Committee and brings out any deviation in internal control procedures. The observations arising out of the audits are periodically reviewed and compliances are ensured. The summary of the internal audit observations and status of implementation are submitted to the Audit Committee every quarter for its review and concerns, if any, are reported to the Board. The statutory auditors review the ef_cacy and adequacy of the internal audit function as a part of their audit procedures and has full access to all the reports and findings of the internal audit.

Discussion on Financial Performance with Respect to Operational Performance

Key Highlights:

Gulf Oils revenue marginally increased by 0.49% y-o-y to Rs.165,221 Lakh. We achieved Net Revenue of Rs.165,221 Lakh and PAT of Rs.20,009 Lakh for the year FY 21 as against revenue of Rs.164,415 Lakh and PAT of Rs.20,252 Lakh respectively in FY 2019-20 in spite of the year being impacted by COVID-19 and spiralling input costs, a sign of significant resilience in our business model. The Board of Directors have recommended a Final Dividend of Rs.9.00 per share (450% on a Face Value of Rs.2 per share) subject to approval of members at ensuing Annual General Meeting. Earlier during February 2021, the Board had declared and paid interim dividend for FY 2020-21 of Rs.7.00 per equity share (i.e. 350% on face value of Rs.2 per equity_share). We continued to create value for our investors as the total dividend for FY 2020-21 stands at Rs.16 per equity share (i.e. 800% on face value of Rs.2 per equity share).

Rs. Lakh
Year ended March 31, 2021 Year ended March 31, 2020 Growth %
Revenue 1,65,221 1,64,415 0.49%
EBITDA 26,519 28,718 -7.66%
PBT 26,874 26,454 1.59%
PAT 20,009 20,252 -1.20%
EPS (Basic) FV-Rs. 2 per equity share 39.86 40.51

Revenues (in Rs. Lakh)

Revenue stood at Rs.1,65,221 Lakh in FY 2020-21 from Rs.1,64,415 Lakh in FY 2019-20. COVID-19 induced lockdowns created a significant slowdown in the economy and lubricant industry degrew during the year. However, we achieved a marginally positive Revenue even in this period supported by a significant recovery in economic activities from the second quarter of the year.

1. Breakup of various cost items as a %age of Sales


Year ended March 31, 2021

Year ended March 31, 2020

Rs. Lakh % Rs. Lakh %
Sales 1,65,221 100% 1,64,415 100%
Cost of goods sold 88,896 53.80% 82,947 50.45%
Employee Benefit Expenses 11,646 7.05% 11,400 6.93%
Manufacturing & Other Expenses 38,159 23.10% 41,350 25.15%
Total Expenses 1,38,702 83.95% 1,35,697 82.53%
EBITDA 26,519 16.05% 28,718 17.47%
Other Income 5,206 3.15% 3,490 2.12%
Finance Costs 1,464 0.89% 2,483 1.51%
Depreciation/ Amortization 3,387 2.05% 3,271 1.99%
PBT (Profit Before Tax) 26,874 16.27% 26,454 16.09%
Tax Expenses 6,865 4.16% 6,202 3.77%
PAT (Profit After Tax) 20,009 12.11% 20,252 12.32%

a. Cost of Goods Sold

Cost of goods sold increased by 7.17% to Rs.88,896 Lakh in FY 2020-21 from Rs.82,947 Lakh in FY 2019-20 mainly due to sharp increase in base oil prices in the later part of the year which is a key raw material for lubricants manufacturing. As a result, cost of goods sold as a percentage to Net Revenue has also increased from 50.5% in FY_2020-21 to 53.8% in FY 2020-21.

b. Manufacturing and Other Expenses

Manufacturing and other expenses decreased by 7.72% to Rs.38,159 Lakh in FY_2020-21 from Rs.41,350 Lakh in FY_2019-20. Decrease is mainly on account of decrease in Advertising and Sales

Promotion by Rs.4,595 Lakh, decrease in Royalty by Rs.614 Lakh, increase in Selling and Marketing Expenses by Rs.815 Lakh, increase in freight & forwarding expenses by Rs.1,842 Lakh.

c. Employee Benefit Expenses

Increased by 1.89% to Rs.11,646 Lakh in FY_2020-21 from Rs.11,400 Lakh in FY 2019-20 mainly on account of increase in usual increments resulting in increase in payroll cost by Rs.246 Lakh.

d. Finance Costs

Finance costs decreased to Rs.1,464 Lakh in FY 2020-21 from Rs.2,483 Lakh in FY_2019-20 which mainly includes forex gain of Rs.358_Lakh in the current year as against forex loss of Rs.1,246 Lakh due to rupee depreciation during last year end. Also, there is increase in interest on short term bank borrowings by Rs.624 Lakh.

e. Depreciation/Amortisation Charge

Depreciation/amortisation charges marginally increased to Rs.3,387 Lakh in FY 2020-21 from Rs.3,271 Lakh in FY 2019-20 mainly due to depreciation charge on assets capitalised at both plant locations and also depreciation charge on intangible assets capitalised during the current year.

Balance Sheet

Rs. Lakh
Particulars As at March 31, 2021 As at March 31, 2020 Change
Fixed Assets 25,735 28,113 (2,378)
Other Non-current assets 5,937 3,766 2,171
Cash and Bank balances 49,560 55,095 (5,535)
Current assets 63,321 57,681 5,640
Total 1,44,553 1,44,655 (102)
Equities & Liabilities
Share Holders funds/ Net Worth 86,938 76,131 10,807
Non-current liabilities 2,463 3,039 (576)
Short Term Borrowings 19,795 35,372 (15,577)
Current liabilities 35,357 30,113 5,244
Total 1,44,553 1,44,655 (102)

2. Capital Employed

During FY 2020-21, capital employed marginally decreased from Rs.144,655 Lakh to Rs.144,553 Lakh due to overall efficient working capital management.

3. Fixed Assets

Net block of fixed assets (including CWIP) decreased by Rs.2,378 Lakh to Rs.25,735 Lakh in FY_2020-21 from Rs.28,113 Lakh in FY 2019-20 mainly due to usual depreciation charge on tangible assets (PPE) and also amortisation effects on "Right of Use Assets" due to Accounting Standard Ind-AS-116 on Leases. Also, there was no major addition to assets during the current year.

4. Other Non-Current Assets

Other Non-Current Assets at the end of FY_2020-21 increased by Rs.2,171 Lakh to Rs.5,937 Lakh from Rs.3,766 Lakh at the end of FY 2019-20 mainly due to equity investment of Rs.1,531 Lakh made by us in Indra Renewable Technologies Limited United Kingdom during the current year.

5. Cash and Bank Balances

Cash and Bank Balances decreased by Rs.5,535 Lakh and stands at Rs.49,560 Lakh at the end of FY_2020-21 as compared to Rs.55,095 Lakh at the end of FY 2019-20 mainly due to repayment of short-term borrowings and still demonstrates very healthy cash position and liquidity strength.

6. Current Assets

Current Assets at the end of FY 2020-21 Increased by Rs.5,640 Lakh to Rs.63,321 Lakh from Rs.57,681 Lakh at the end of FY 2019-20. The overall inventory increased by Rs.4,824 Lakh to Rs.37,651 Lakh in FY 2020-21 from Rs.32,827 Lakh in FY 2019-20. Trade Receivables marginally increased by Rs.196 Lakh from Rs.18,700 Lakh in FY 2019-20 to Rs.18,896 Lakh in FY 2020-21.

7. Net Worth

Net Worth at the end of FY 2020-21 increased by Rs.10,807 Lakh to Rs.86,938 Lakh from Rs.76,131 Lakh as at FY 2019-20.

Increase in Share Capital by Rs.4 Lakh in FY_2020-21 at Rs.1,006 Lakh from Rs.1,002 Lakh as at FY 2019-20 mainly due to issue of 2,03,817 shares under equity stock options. Our other Equity has increased by Rs.10,802 Lakh in FY 2020-21 at Rs.85,931 Lakh from Rs.75,129 Lakh as at FY 2019-20 mainly on account Profit After tax of Rs.20,009 Lakh for FY 2020-21 and net off payment of three dividends amounting to Rs.10,541 Lakh (Interim Dividend of Rs.3,507 Lakh for FY 2019-20, Final Dividend of Rs.3,512 Lakh for FY 2019-20 and Interim dividend of Rs.3,522 Lakh for FY 2020-21).

8. Non-Current Liabilities

Non-Current liabilities at the end of FY 2020-21 marginally decreased by Rs.576 Lakh to FY 2020-21 Rs.2,463 Lakh from Rs.3,039 Lakh as at FY 2019-20.

9. Current Liabilities (including Short Term Borrowings)

Trade payables have increased by Rs.3,130 Lakh to Rs.28,981 Lakh in FY 2020-21 from Rs.25,851 Lakh in FY 2019-20. Short-term borrowings have also decreased by Rs.15,577 Lakh at the end of FY 2020-21 at Rs.19,795 Lakh over previous year of Rs.35,372 Lakh as during the current year we have repaid entire unsecured working capital demand loans of Rs.17,000 Lakh taken from our bankers during earlier year in order to augment additional liquidity in the event of prolonged pandemic-induced impact on our working capital. Further, we have a net cash (net of short-term debts) of Rs.29,765 Lakh as at March 31, 2021 as against net cash balance of Rs.19,723 Lakh as of March 31, 2020 thus demonstrates that we are Net Debt free as at March 31, 2021. Other financial liabilities increased mainly due to increase in current tax liabilities by Rs.1,524 Lakh. Increase in other current liabilities mainly due to increase in statutory dues payable by Rs.442 Lakh and also increase in contract liabilities by Rs.461 Lakh.

10. Liquidity

We broadly define liquidity as our ability to generate sufficient funds from both internal and external sources to meet our obligations and commitments. Our primary liquidity requirements have been to finance our working capital requirements for our operations and for capital expenditures and investments. We have financed our capital requirements primarily through funds generated from our operations.

11. Cash Flows

The table below summarises our cash flow for the periods indicated (Please refer cash flow statement for more details)

Rs. Lakh
March 31,2021 March 31,2020
Net cash generated from operating activities 19,350 23,684
Net cash generated/(used) in investing activities 2,952 1741
Net cash generate/(used) in financing activities (27,724) 487
Net change in Cash and Cash Equivalents (5,422) 25,912
Changes in Key Financial Ratios


Sr. No Key Ratios As on 31 March 2021 As on 31 March 2020 Remarks /Responses
1 Debtors Turnover (Times) 8.79 9.73 No Significant change
2 Inventory Turnover (Times) 4.69 4.93 No Significant change
3 Interest Coverage Ratio (Times) 15.80 10.22 No Significant change
4 Current Ratio (Times) 2.05 1.72 No Significant change
5 Debt Equity Ratio (Times) 0.23 0.46 No Significant change
6 Operating Profit Margin (%) 14.00 15.44 No Significant change
7 Net Profit Margin (%) 12.11 12.32 No Significant change
8 Return of Equity (ROE-%) 23.01 26.6 No Significant change