Mumbai, February 11,: The Gulf Oil Lubricants India Limited, a Hinduja Group Company, recorded an all time high net revenue of Rs 601.82 crore for the quarter that ended December 31, 2021 as against the net revenue of Rs. 481.86 crores in the quarter ended December 31, 2020. . The unaudited financial results were released yesterday.
However, during the quarter ended December 31, 2021,(profit after tax) PAT fell to Rs. 58.63 crores as against the PAT of Rs. 64.00 crores in the quarter ended December 31, 2020. During the nine months period ended December 31, 2021, the company has achieved Net Revenue of Rs.1,552.71 crores and PAT of Rs. 147.68 crores as against a Net Revenue of Rs. 1,134.77 crores and a PAT of Rs. 140.30 crores respectively for the nine months ended December 31, 2020.
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 3rd quarter with excellent growth coming from 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.
Commenting on the performance, Mr. 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. 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. With the COVID situation improving across the country and globally with people & governments deciding to take the same in stride and move towards normalcy, we hope to see improved demand tailwinds coming in and are well set to reenergize all round growth with our strategies and passion of our team and business partners.”
“We are also driving up internal focus in evaluating & participating in the evolving EV space and where Gulf can play to make it a potential future growth segment for us on the strengths of our brand, distribution reach and OEM relationships.
We are seeing a trend of economic activities improving going forward and demand conditions picking up in the coming months and in the next financial year, especially in the manufacturing, commercial vehicle, construction equipment (infra related ) and B2C sectors. This augurs well to get the overall lubricant industry back on the growth path, which should provide tailwinds for our company to push for further distribution reach and market share growths.
