Gulf Oil con­tin­ues growth mo­men­tum

Auto components India - - COVER STORY - ACI Bureau

Gulf Oil Lu­bri­cants In­dia Lim­ited, a Hin­duja Group com­pany, dur­ing the quar­ter to Septem­ber 30, 2018, has clocked strong vol­ume growth across busi­ness seg­ments to achieve net rev­enues of Rs 417.21 crore and profit af­ter tax (PAT) of Rs 40.29 crore. On year-on-year (YoY) ba­sis, net rev­enue in­creased by 29.19% to Rs 417.21 crore from its base of Rs 322.95 crore in the pre­vi­ous year Septem­ber quar­ter.

On half yearly ba­sis, the com­pany achieved net rev­enue of Rs 807.57 crore and PAT of Rs 80.42 crore. With net rev­enue of Rs 603.00 crore in the pre­vi­ous year Septem­ber pe­riod, YoY growth in net rev­enue in H1 is at 33.93%.

While the EBIDTA of the com­pany has grown at healthy 15% YoY, the profit be­fore tax has been im­pacted mainly due to forex losses (largely Mark To Mar­ket on un­hedged for­eign cur­rency ex­po­sures) in view of very steep ru­pee de­pre­ci­a­tion dur­ing the quar­ter and higher de­pre­ci­a­tion YoY for its re­cently-com­mis­sioned Chen­nai plant.

The com­pany con­tin­ued its growth mo­men­tum dur­ing Q2 record­ing a very ro­bust vol­ume growth of 22% in its core busi­ness (over­all Q2 vol­ume growth around 30% in­clud­ing non-reg­u­lar in­sti­tu­tional sales dur­ing the quar­ter). There has been growth across all busi­ness seg­ments and prod­uct cat­e­gories with DEO, PCMO & MCO all de­liv­er­ing dou­ble-digit vol­ume growth. This au­gurs well as the Q2 growth fol­lows a strong vol­ume growth achieved in the pre­vi­ous quar­ter by the com­pany.

“The ro­bust vol­ume growth of 22% achieved dur­ing the quar­ter in our core busi­ness re­flects well on the com­pany’s con­tin­ued ex­cel­lent per­for­mance beat­ing in­dus­try growth by more than 4 times. Achiev­ing such a vol­ume growth and de­liv­er­ing an EBIDTA growth in up­wards of 15% YoY in a very un­cer­tain eco­nomic en­vi­ron­ment where ris­ing crude prices and steep Ru­pee de­pre­ci­a­tion im­pacted the mar­ket sen­ti­ments, assures us that our var­i­ous ini­tia­tives around dis­tri­bu­tion, brand build­ing, etc are show­ing pos­i­tive im­pacts. New OEM tie-ups and other B2B cus­tomer ac­qui­si­tions have also helped us grow vol­umes across all our fo­cus seg­ments and grow our mar­ket share and con­sol­i­dated our po­si­tion as the fastest grow­ing lu­bri­cants com­pany in the coun­try in the last many years,” Ravi Chawla, Man­ag­ing Direc­tor, Gulf Oil Lu­bri­cants In­dia Lim­ited, said.

Gulf Oil con­tin­ued its in­vest­ments in its brands across cat­e­gories. Gulf Pride 4T Plus, its lead­ing MCO brand was re-launched and the new pack with re­freshed look and feel hit retail shelves across the coun­try. A new En­durance se­ries of Greases was launched un­der the brand name of Gulf Crown with com­pletely new look and the Cus­tomer Value Propo­si­tion (CVP) of longer life.

A Gulf Mas­ter Me­chanic, a me­chanic loy­alty pro­gramme, was rolled out across 20 towns in the coun­try and again was re­ceived with ex­cite­ment and pos­i­tive re­views from me­chan­ics who are key in­flu­encers in the pur­chase de­ci­sion-mak­ing process in the lu­bri­cant in­dus­try.

In a re­cent devel­op­ment, Tata Mo­tors and Gulf Oil signed an agree­ment to launch a range of co­branded lu­bri­cants for its pas­sen­ger ve­hi­cles seg­ment in the bazaar seg­ment. The prod­ucts launched un­der this range would cover the en­tire gamut of re­quire­ments of Tata Mo­tors Pas­sen­ger ve­hi­cles busi­ness, which would in­clude en­gine oil, gear oil, coolant and brake oil. Ad­di­tion­ally, the prod­uct range would of­fer best tech­nol­ogy for Tata Mo­tors’ con­sumers and will be con­tin­u­ously up­graded from time to time de­pend­ing on the re­quire­ments. The agree­ment will lever­age Gulf Oil’s ex­ten­sive dis­tri­bu­tion net­work to make it eas­ily avail­able to cus­tomers.

The newly com­mis­sioned Chen­nai plant has se­cured the IGBC (In­dian Green Build­ing Coun­cil) Gold rat­ing - cer­ti­fy­ing the de­ploy­ment of green con­cepts like de­ploy­ment of so­lar pan­els and use of 100% nat­u­ral light to save elec­tric­ity; sewage treat­ment plant and rain­wa­ter har­vest­ing for wa­ter con­ser­va­tion etc - de­signed to re­duce en­vi­ron­men­tal im­pacts in a mea­sur­able way at this fa­cil­ity.

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