Gulf Oil Lubricants Q2 results July September PAT grows 15% to Rs 84.44 crore

Lubes maker Gulf Oil Lubricants India on Wednesday reported a 15 per cent growth in profit after tax (PAT) at Rs 84.44 crore for the three months to September 2024. The Hinduja Group firm had delivered a PAT of Rs 73.66 crore in the second quarter of FY 2023-24.

Its revenue from operations for the quarter increased 5.86 per cent to Rs 849.33 crore from Rs 802-30 crore a year ago, it stated.

The company also delivered an EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 107.15 crore, up 6.64 per cent compared to Rs 100.48 crore for the second quarter of FY24, Gulf Oil Lubricants said.

"We had a good quarter in spite of the volatile market conditions with Q2 and H1 FY25 PAT growth at healthy 15 per cent and 22 per cent, respectively, on a year-on-year basis.

"We focused on sustaining our margins, achieving an improvement in gross margin, resulting in an EBITDA of 12.62 per cent of revenue, while investing in brand, digital and human resources to enhance the long-term endurance of the organisation," Gulf Oil Lubricants India Ltd CFO Manish Gangwal said.

The robust cash flow generation in H1 reflects the company's continued focus on working capital management and operational efficiencies, he said.

"While monitoring the geopolitical landscape, we remain committed to refining our product mix, controlling costs, and enhancing profitability on a continuous basis for maximising shareholder value." Despite the operational impact of heavy rains at the beginning of Q2, overall demand remained healthy, driving up Q2 lubricant volume growth by 9 per cent for the company, Gulf Oil Lubricants India Managing Director and CEO Ravi Chawla said.

"This reinforces our unwavering commitment and reliable performance, even amid challenging conditions, positioning us well for continued 2-3x market growth. Our growth momentum is sustained through strategic and impactful brand investments, enhanced product capabilities and industry-leading initiatives driving up profitable growth across our focus segments," Chawla said.

"We uphold a positive demand outlook, confident in the medium- to long-term potential of India's lubricants sector."