Gulf Oil clocked 35 percent revenue growth year-on-year in Q2FY2023 at Rs 719.50 crore from Rs 533.52 crore in the same quarter last year. The Q2FY2023 PAT came in muted at Rs 52.14 crore from Rs 58.70 crore in Q2FY2022 on account of high cost pressures and challenging environment.
The Q2 EBITDA however grew 4 percent YoY despite challenges.
Rising input costs impacted by volatile crude and base oil, additive prices and overall inflationary trend, depreciating rupee and liquidity challenges in trade contracting demand conditions were some of the key challenges for the company.
However, what ensured a robust momentum is core volume growth which clocked a double-digit performance in Q2. While the B2B segments of business witnessed good growth during the quarter, the B2C segment saw flattish volumes due to liquidity challenges, seasonal impact due to the monsoons and lower demand from the agri segment. Cntinuous price increases and delayed purchasing in a volatile environment also impacted sentiment.
For the half-year ended September 30, 2022, the company has achieved net revenue of Rs 1425.95 crores as against Net Revenue of Rs. 950.89 crores in the first half of last fiscal and PAT of Rs 107.47 crores Vs Rs 89.05 crores in H1FY2022.
Timely pricing actions and overall cost consciousness to minimise the adverse impacts of cost pressures helped the YTD performance.
Some key highlights during Q2
In the Agri space, the company became the first to now offer a 1000-hour drain interval on its brand Gulf XHD Supreme+ in its product of 15W-40 viscosity grade. In inflationary times, the company seeks to provide more value to its customers, more so for the rural segment.
It also continued to see good traction in sales of AdBlue as witnessed from previous quarter and is a front runner in supplying Adblue across the entire country through its extensive distribution network and tie-ups with more than 10 OEMs.
Commenting on the performance and offering an outlook for H2, Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India said, “Looking ahead, I believe we can continue our high growth momentum further once there is stability from costs side, foreign exchange and inflation which will give tailwind to demand uptick. We have launched EV Fluids during last month for 2 EV OEMs and lot of discussions are progressing with many players in the EV eco-systems to enable us to play a role in this evolving segment. I am quite satisfied with our double digit distribution gains in last quarter in retail segment post overcoming covid related closures of retail outlets in Bazaar market as a result of our outreach theme ‘Re-establish Connect & Re-energize Growth’.”