Gulf Oil's reports Rs 62.65 Cr net profit as B2B sales provides boost

Gulf Oil Lubricant, a unit of Hinduja Group and Gulf Oil International, posted a net profit of Rs 62.65 crore in Q3FY23, up 6.86% from the same period previous year when it earned Rs 58.63 crore, owing to strong growth in the Business-to-Business (B2B) segment.

The consumer-facing B2C market, on the other hand, continued to confront sluggish rural demand, affecting our volumes in the agriculture and two-wheeler categories. Furthermore, the company's management stated that demand for commercial vehicle oil (CVO) remained robust.

Similarly, Gulf Oil's total revenues increased by 29.79% during Q3FY23 to Rs 781.10, compared to Rs 601.82 in Q3FY22. On a nine-month basis, all segments grew, resulting in 18% volume growth and 42% revenue growth, the company noted in a statement. 

The Company is seeing some of its input cost items decline, but the advantage is being countered in part by rising additive costs and a declining currency. Despite constant margin management initiatives implemented during a 9-month period, these issues continue to weigh on total margins, it added.

Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Ltd., said, “The continued all round growth we have achieved in Q3, where Company has crossed Rs. 90 crores quarterly EBITDA mark for the first time in an environment of continued cost pressures for some of its key inputs and depreciating INR is due to the excellent team efforts and strong brand and business model that we have in place"

He added that the company delivered 3-4x of the market growth rate in volumes when demand conditions from segments related to rural like agri and 2W Oils were subdued. " Margin management will continue to remain a key focus area where Company will be playing a balancing approach on volume vs margins as some of the input costs have stabilized following crude oil, but we remain cautiously optimistic in an environment of global uncertainty with volatile economic conditions from a short to medium term perspective.”