Gandhar Oil Refinery (India) Ltd, a leading manufacturer of white oils by revenue, engaged in producing Pharmaceutical, Health Care, and Performance Oil (PHPO), Process Insulating Oil (PIO) and Lubricants, has announced its Financial Results for the Quarter ended September 30, 2024.

The company has posted net profit of Rs. 18.1 crore in Q2 FY25 as compared to Rs. 48.1 crore in Q2 FY24. Revenue from Operations in Q2 FY25 was Rs. 935.1 crore as compared to Rs. 1,001 crore in Q2 FY24.

Key Financial Highlights:

* Consolidated Manufacturing Volumes for Q2FY25 remained stable at 118,302 KL, while for H1FY25 it stood at 240,318 KL. On a Standalone basis, Manufacturing Volumes increased by 1.6% to 99,172 KL

* Consolidated Revenues for the Q2FY25 stood at Rs. 935.1 crore compared to Rs. 994.8 crore in Q1FY25, while for H1FY25 it stood at Rs. 1,929.9 crore. Standalone Revenues for Q2FY25 stood at Rs. 761.2 crore compared to Rs. 790.2 crore in Q1FY25

* For H1FY25, the consolidated revenue breakdown is as follows: PHPO leads with 47.9%, Lubricants account for 28.2%, PIO represents 9.5%, and Channel Partners contribute 14.4%

* Consolidated Manufacturing Gross Margin Spread for Q2FY25 stood at Rs. 8,299 per KL while for Q1FY25 it was Rs. 8,755 per KL. The spread for H1FY25 stood at Rs. 8,531 per KL.

Commenting on the Results, Aslesh Parekh, Joint Managing Director said, “Despite a challenging external environment, Gandhar remains one of the largest global producers of white oils, primarily supplying essential sectors such as Pharma, FMCG, and Cosmetics. In H1FY25, our PHPO products alone accounted for 47.9% of our consolidated turnover, underscoring our continued leadership in this segment. Additionally, we are committed to serving diverse industries with our lubricant and PIO products, including rubber processing and transformer oils.

“In Q2FY25, we saw stable manufacturing volumes on a consolidated basis compared to the previous quarter, while standalone manufacturing volumes increased by 1.6% to 99,172 KL. However, our revenue witnessed a 6% decrease on a consolidated basis, largely attributed to a decline in average selling prices. This reduction reflects broader market factors, including a drop in crude oil prices, a sluggish demand environment in the Pharma and FMCG sectors, and escalating freight costs due to geopolitical issues in the Red Sea.

“Our focus remains on leveraging our industry position to adapt and innovate. By enhancing our operational efficiency and expanding product applications, we aim to navigate these market challenges and sustain long-term value creation for our stakeholders.”