Gulf Oil, part of the Hinduja Group and Gulf Oil International, has announced its financial result for Q1 FY204 with revenue of Rs 811.71 crore, up 14.9 percent as against Rs 706.45 crore reported last year. The net profit came at Rs 68.30 crore, up 23.4 percent as against Rs 55.33 crore for the same period last year.
The company says it achieved record revenues in relatively challenging conditions in the aftermarket and the growth was led by the B2B and Infra segments as well as the OEM Franchisee Workshop (authorised service) channel. There was some softening in offtake by key OEMs for factory fill and in Agri segments. Exports grew double-digit during the first quarter.
The revenue growth it says has been even higher due to a better product mix being sold with enhanced focus on personal mobility and the premium synthetic segment. The quarter witnessed some ease-off in input costs and Rupee stabilising, which helped garner better material margins while also resulting in some cooling off in the end pricing for customers.
Focus on margins
Gulf Oil states that going forward, continuous margin management actions and growing faster remain key focus areas.
Ravi Chawla, MD & CEO, Gulf Oil Lubricants India said, “During June’23 quarter, the company witnessed a robust revenue growth of 15 percent and PAT growth of 23 percent on the back of sequential margin improvements and easing of forex volatility, which paved the way for higher brand investments by leveraging our brand assets during IPL season. While few segments are still facing softer demand conditions, B2B continues to achieve double digit growth for us. Our distribution reach is continuously on the rise and that creates a strong foundation for our market share gain strategy.”
“We will continue our focus on margin management and 2-3x market growth in terms of volumes and revenues on a full year basis. Our robust cash generations enable us to look for opportunities in the emerging fields of EVs and other adjacencies and exploring areas where Gulf can play a key role basis synergy with our current strengths and future strategies,” he concluded.
