Gulf Oil Lubricants Eyes EV Space, Portfolio Premiumisation For Growth
Gulf Oil has done very well in terms of the business-to-consumer as well as the business-to-business growth, the CFO says.
Gulf Oil Lubricants India Ltd. is likely to foray into electric-vehicle chargers as a part of its future growth plan after the company reported healthy performance in all segments, except infrastructure, Chief Financial Officer Manish Gangwal said on Wednesday.
The lubricant manufacturer is working on the "unlock 2.0 transformation theme" with a focus on the premiumisation of its portfolio, Gangwal told NDTV Profit.
"We have three things — accelerate the current business, premiumise the portfolio and transform our existing business, including bringing in new products like EV chargers," he said. "With this theme, premiumisation is a key focus area. Across segments, we have not only launched premium products, (but) our sales team is (also) driven by selling more premium products."
As part of the theme, the company has invested in certain EV charger-making companies and software-as-a-service providers, making inroads in the segment's value chain.
The Hinduja Group company posted a 29% year-on-year growth in its consolidated net profit at Rs 88 crore in the first quarter as compared to Rs 68.3 crore in the year-ago period.
Gulf Oil Q1 FY25 Earnings Highlights (Consolidated, YoY)
Revenue from operations up 9% to Rs 885.1 crore versus Rs 811.7 crore.
Ebitda up 25% to Rs 116.2 crore versus Rs 92.8 crore.
Ebitda margin at 13.13% against 11.43%.
Profit up 29% to Rs 88 crore versus Rs 68.3 crore.
Gulf Oil has done very well in terms of business-to-consumer as well as business-to-business growth. In the infrastructure segment, it was slightly in the lower single digit in terms of growth because of elections and heatwaves in parts of India when the labourers are not available, according to Gangwal. "All other segments have done well in terms of volume."
Gulf and original-equipment-manufacturer-branded products registered export growth, with a significant volume increase during the period under review. Exports contributed 5–6% to the core lubricant volume and the numbers could increase to 8–10% in the next two to three years, Gangwal said. "Our objective is to give service to our Indian OEMs on the back of their rising growth in our portfolio."
Shares of Gulf Oil closed 6.17% higher at Rs 1,149.90 on the BSE, compared to a 1.11% advance in the benchmark Sensex.
