Gulf Oil has reported its unaudited financial results (standalone) for the Quarter & Nine Months that ended December 31, 2022. During the period, the Company has achieved a net revenue of Rs. 781.10 crores and PAT of Rs. 62.65 crores as against net revenue of Rs. 601.82 crores and PAT of Rs. 58.63 crores respectively in the Quarter ended December 31, 2021.
For the nine months ended December 31, 2022, the company has achieved a net revenue of Rs. 2,207.05 crores and PAT of Rs. 170.13 crores as against net revenue of Rs. 1,552.71 crores and PAT of Rs. 147.68 crores respectively in the nine months ended December 31, 2021.
The Company delivered a double-digit volume growth for the quarter in its core lubricants portfolio. While B2B segments recorded robust growth, B2C retail markets continued to face tepid rural demand conditions which impacted our volumes in Agri and two-wheeler categories.
Demand in Commercial Vehicle Oil (CVO) category remained strong. On a 9-month basis, all segments have grown leading to 18% volume growth and 42% revenue growth for the period.
The Company is witnessing softening of some of its input cost items, but its effect is partially offset by the rising cost of additives and depreciating INR. These factors continue to weigh on the overall margins despite continuous margin management actions taken all through the 9-month period.
The company has reignited efforts by increasing the investments in its brand building and driving CVPs (consumer value propositions) for its products in each segment. Increased BTL campaigns, social media presence, influencer, and trade activations to increase sales and add distribution touch points, drive up consumer usage and improve market shares were also launched. Digital campaigns were promoted on CVO brands as well as on MCO (Motorcycle engine oil) brand Gulf Pride.
A retail visibility display drive saw enthusiastic participation on MCO brands by thousands of retailers in the after-market. In the MCO category, the company revamped the economy segment brand Gulf Zipp into 2 product offerings with varying specifications at different price points – Gulf Zipp Smart and Gulf Zipp Plus.
The company launched Gulf XHD Supreme+ engine oil with a longer drain interval, hence delivering more value to the tractor-owning farmer. It has an industry-leading 1000 hrs drain interval on its 15W40 product. This launch was promoted via van activation in the hinterland of multiple states.
Commenting on the performance, Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India, said, “The continued all-round growth we have achieved in Q3, where the company has crossed Rs. 90 crores quarterly EBITDA mark for the first time in an environment of continued cost pressures for some of its key inputs and depreciating INR is due to the excellent team efforts and strong brand and business model that we have in place. We have delivered 3-4x of the market growth rate in volumes when demand conditions from segments related to rural like agri and 2W Oils were subdued.”
He added, “Our distribution footprint continues to grow ahead of our double-digit volume growth signifying a lot of efforts on the ground helping with ATL & BTL initiatives which augur well for our future growth trajectory. Margin management will continue to remain a key focus area where the company will be playing a balancing approach on volume vs margins as some of the input costs have stabilized following crude oil, but we remain cautiously optimistic in an environment of global uncertainty with volatile economic conditions from short to medium term perspective.”
| Q3- FY-22-23 | Q3-FY-21-22 | Growth% Y-o-Y | 9 Months -FY-22-23 | 9 Months -FY-21-22 | Growth% Y-o-Y | |
| Net Revenue | 781.10 | 601.82 | 29.79% | 2,207.05 | 1,552.71 | 42.14% |
| EBITDA | 90.02 | 77.02 | 16.88% | 255.30 | 196.41 | 29.98% |
| Profit Before Tax (PBT) | 84.31 | 78.62 | 7.24% | 228.68 | 198.19 | 15.38% |
| Profit After Tax (PAT) | 62.65 | 58.63 | 6.86% | 170.13 | 147.68 | 15.20% |
| EPS (Basic) | 12.78* | 11.63* | 34.62* | 29.32* |
* Not Annualised