Gulf Oil Lubricants India Limited, a Hinduja Group company reported Q2 FY 20-21 PAT Rs. 59.13 crore down 4.6% vis-a-vis Q2 FY 19-20 

 

The revenues for the quarter were back to Pre-Covid levels with strong volumes. Revenue for Q2 FY 20-21 reached Rs. 411.74 crore. The company has registered highest EBITDA margins of 19.10% due to favourable input cost and other costs prudence. 

 

The company has recorded all round growth in the July-Sept quarter to deliver significantly improved numbers based on initiatives to drive up volume growth across all segments and continuing cost prudence measures. Industry also saw some demand conditions picking up month on month, with most markets and customer segments returning to near normalcy and some pent up demand. This enabled the company to deliver revenues at almost per-covid levels and an all-time high EBITDA and PBT for the quarter.

 

The company's robust supply chain and distribution strengths combined with our strong demand sensing strategies resulted in record level volumes in key sub segments. Innovative and focused programs leveraging our associations with Chennai Super Kings (CSK) and MS Dhoni significantly contributed to the growth of bazaar sales. 

 

Demand increase for products in the 2-wheeler and commercial vehicles category also contributed to the growth in Q2. The PCMO segment which has been the most affected due to bigger metro cities having seen the longest lockdown also picked up in terms of demand levels towards the end of the quarter. Other key segments for the company namely, B2B related and industrial businesses saw strong growth and record sales in this quarter.

 

The company also launched Season-2 of brand property “SurakshaBandhan” for truckers as we tied up with a leading radio channel partner and distributed a special, unique rakhi (containing soap strips) to more than 10,000 truckers in various transport nagars. 

 

This quarter also saw the re-launch of Gulf AdBlue EcoPro, for the Diesel Exhaust Fluid (DEF) product segment for BS VI vehicles, that is seeing a lot of growth and traction given the push for cleaner, more environmentally-friendly emission norms.

 

The company also generated robust operating cash flows for the 6 months ended September '20 at Rs. 133 crore aided by robust working capital management.

 

“As indicated in my last quarter statement, the demand conditions across many segments were showing strong revival and we are pleased to deliver a robust performance on both top line and bottom line front with highest quarterly profitability and highest EBITDA margins. I am really proud of the team, trade and business partners who have all worked relentlessly and innovatively to achieve these record numbers and deliver this performance in the midst of these challenging times," said Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India. 

 

The strength of our brand equity, product offerings, network and team's passion have come to the fore as key differentiators that reflect in our company's continued outperformance. The current demand conditions give a lot of optimism going forward, while we continue to exercise cost optimisation amid tightening input costs scenario and also look at market share growth opportunities ahead,” added Chawla.