Gulf Oil Lubricants Q2 results: PAT grows 41% to Rs 73.63 crore in September quarter

Lubes maker Gulf Oil Lubricants India on Wednesday said its profit after tax grew 41.22 per cent year-on-year to Rs 73.63 crore in the September quarter.

The company had booked a Profit After Tax (PAT) of Rs 52.14 crore in the second quarter of fiscal 2022-23. The top line increased 12 per cent to Rs 802 crore in the reporting quarter as against Rs 719.50 crore in Q2FY23, it said.

The quarter witnessed a good all-round performance on volume, revenue, margin and profit fronts with continued robust double-digit revenue growth and further sequential improvement in margins leading to the first time crossing the Rs 100 crore EBITDA mark in a single quarter, Gulf Oil said.

In a seasonally subdued quarter due to monsoon, OEM Franchise Workshops (FWS), B2B and infra segments clocked double-digit volume growth while retail volumes also showed better growth with agri and motorcycle products coming back stronger, it said.

The quarter witnessed reasonably stable input cost, which helped garner better material margins and better product mix across segments, the company said.

"The company delivered Rs 100 crore EBITDA in a single quarter backed by 2x the industry volume growth and improved margins. With a double digit revenue and volume growth in most segments, the company is confidently on track to continue its 'ahead of industry' performance and gain market shares," Ravi Chawla, Managing Director and CEO at Gulf Oil Lubricants India, said.

"Our strategy to continue to focus on distribution growth in retail will augur well for the segment over coming quarters/years. The recent developments in geo-political situations in the Middle East along with the ongoing Russia-Ukraine war will continue to require close margin management focus going forward as well," he said.

He also added that the robust cash generation enables the company to look for opportunities in the emerging fields of EVs and other adjacencies and exploring areas where the Gulf can play a key role basis synergy with our current strengths and future strategies.

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