Gulf Oil posts record 59% rise in Q3 net profit

Gulf Oil Lubricants India Ltd, a Hinduja Group firm, today reported its highest ever quarterly net profit as a record volume growth drove up earnings in October-December.

Net profit for the quarter at Rs 42.49 crore was 59.14 per cent higher than Rs 26.70 crore in the same period of 2016-17.

"We witnessed very very high growth in the quarter. Volume growth in core business, which previously averaged 11- 12 per cent, was 22 per cent in the quarter," company's Managing Director Ravi Chawla said.

It recorded a 35 per cent growth in volumes for motorcycle engine oil, where the company commands a 9 per cent market share. This growth was compared to an average of 15 per cent in the past.
 

Chawala said passenger car motor oil recorded a 15 per cent growth. "A special mention for the growing momentum in the diesel engine oil segment which has helped us capture these record volumes."

Diesel engine oil recorded a 15 per cent growth, he said.

Revenue was up 34.4 per cent at Rs 355.95 crore in the third quarter ended December 31, 2017.

The board of the company declared an interim dividend of Rs 4 per share (200 per cent on a face value of Rs 2 per share).

"This is a very important quarter for our company thanks to records achieved in terms of revenues and volumes," he said. "We hope to leverage and tap this growth trajectory as the Indian economy looks to grow faster from the green shoots seen currently."

For the coming fiscal, the company is now better placed to tap growing opportunities with additional volume capacity from its new plant in Chennai and an increased focus on the passenger car motor oil PCMO segment, Chawla said.

The Chennai plant capacity has been enhanced by 40,000 kilolitre to 130,000 kilolitre, which will be available in current quarter.

He said the company expects to continue the momentum in the current as well as coming quarters.

During the quarter, Gulf Oil started sales to original equipment manufacturers (OEMs) like KOBELCO and also exports for Bajaj Auto's certain markets overseas.