Gulf Oil Lubricants Q2 PAT rises 15% YoY to Rs 84 crore

Gulf Oil Lubricants India's net profit jumped 14.68% to Rs 84.44 crore on 5.86% rise in revenue from operations to Rs 849.33 crore in Q2 FY25 over Q2 FY24.

Profit before tax (PBT) climbed 14.52% to Rs 113.39 crore in second quarter of FY25, compared with Rs 99.01 crore posted in same quarter previous fiscal.

EBITDA stood at Rs 107.15 crore during the quarter, registering the growth of 6.64% on YoY basis.

EBITDA margin stood at 12.62% during September 2024 quarter as against 12.52% in Q2 FY24, which is within the guided range of 12-14% even as the company increased investments significantly during the quarter in brand campaigns.

Ravi Chawla, MD & CEO, Gulf Oil Lubricants India, said, Despite the operational impact of heavy rains in the beginning of Q2, overall demand for us remained healthy, driving-up our Q2 lubricant volume growth by 9%. This reinforces our unwavering commitment and reliable performance, even amid challenging conditions, positioning us well for continued 2-3x market growth.

Further, we uphold a positive demand outlook, confident in the medium- to long-term potential of India's lubricants sector. Our growth momentum is sustained through strategic & impactful brand investments, enhanced product capabilities and industry leading initiatives driving-up profitable growth across our focus segments.

Manish Gangwal, CFO, Gulf Oil Lubricants India, said, We had a good quarter in spite of the volatile market conditions with Q2 and H1 PAT growth at healthy 15% and 22% respectively on year-on-year basis. We focused on sustaining our margins, achieving an improvement in gross margin, resulting in an EBITDA of 12.62% of revenue, while investing in brand, digital and human resources to enhance long term endurance of the organization. Our robust cash flow generation in H1 reflects our continued focus on working capital management and operational efficiencies.

Gulf Oil Lubricants India, part of Hinduja Group and Gulf Oil International, is one of the leading players in the lubricant market in India and has a top 2/3 position in key segments amongst the private sector brands. The company has a wide range of world class-leading products in the automotive and industrial lubricants space catering to B2B and B2C segments with a growing distribution network. The company also has a growing share in the 2-wheeler batteries segment.

Shares of Gulf Oil Lubricants India declined 3.48% to Rs 1,219 on the BSE.

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