Gulf Oil Lubricants India rises after decent Q1 results

Gulf Oil Lubricants India rose 2.27% to Rs 755.50 at 11:37 IST on BSE after net profit rose 21.4% to Rs 48.73 crore on a 12.9% increase in the net sales to Rs 440.68 crore in Q1 June 2019 over Q1 June 2018.

The result was announced after market hours yesterday, 30 July 2019.

Meanwhile, S&P BSE Sensex was down 83.52 points or 0.22% at 37,313.72.

On BSE, 502 shares were traded in Gulf Oil Lubricants India counter, compared to a 2-week average of 939 shares. The stock hit an intraday high of Rs 767.65 and an intraday low of Rs 738.30. It hit a 52-week high of Rs 909 on 6 June 2019 and a 52-week low of Rs 618 on 31 October 2018.

The industry witnessed softness due to pressure across auto sector and overall economic sentiments leading to the lubricants industry growth volumes estimates at a flat to marginally negative level during Q1. Despite stthis, the company achieved an overall volume growth of around 7.5% YoY during the 1quarter (core lubricants volume growth at near double digit) leading to a strong Revenue growth of around 13%. There has been double digit growth in personal mobility, Infrastructure, OEM dealerships and certain Industrial business segments. The Diesel Engine Oils segment saw slightly lower growth, also due to lower factory fill volumes and this segment reported single digit growth during the quarter.

"Despite the slowdown in auto industry, we are glad to report a strong performance in our revenues and core lubricant volumes. This is due to many initiatives planned and executed by us, led by strong marketing and sales promotion programs that we have undertaken this quarter. Our TV campaign on our products featured during the broadcast of the fixtures of the Cricket World Cup and social media-led #cheerwithpride campaign combined with innovative BTLand digital marketing initiatives helped us grow in the bazaar segment. We are confident that our robust business model coupled with the multiple customer- centric initiatives that we have taken up in Retail, OEM dealerships, Infra and industrial segments enabled us to maintain our growth momentum. Our quarter results are testimony of our resilience and team capabilities to grow positively even in tough market conditions." said Ravi Chawla, managing director, Gulf Oil Lubricants India.

Gulf Oil Lubricants India, part of Hinduja Group, is an established player in Indian lubricant market. It markets a wide range of automotive and industrial lubricants, greases, 2-wheeler batteries, etc.

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