Gulf Oil India Reports Record Quarterly EBITDA Growth with Strong PAT Gains

Mumbai, August 6th, 2024: Gulf Oil Lubricants India Limited, part of the Hinduja Group, has announced its unaudited financial results for the first quarter ending June 30, 2024, showcasing robust growth and strong financial performance.

Key Highlights:

• Q1 Revenue: ₹885.07 crores, up 9.04% year-on-year
• Q1 EBITDA: ₹116.24 crores, a 25.28% increase year-on-year
• Q1 PAT: ₹88.02 crores, a 28.88% rise year-on-year

Gulf Oil has demonstrated significant progress, achieving a revenue from operations of ₹885.07 crores, up from ₹811.71 crores in the same quarter last year. The company’s PAT surged to ₹88.02 crores compared to ₹68.30 crores in Q1 2023, reflecting a remarkable 28.88% growth.

CEO Insights:
Ravi Chawla, Managing Director & CEO, emphasized the company’s exceptional performance, particularly in the lubricants sector, which grew at twice the industry rate. “Our B2C and Industrial segments have shown notable growth, underscoring our relentless efforts and consistent performance. Our strategic brand associations and campaigns, especially during the IPL season, have significantly enhanced our brand visibility,” Chawla remarked.

Looking forward, Chawla expressed confidence in the Indian lubricants sector’s potential. “We are committed to driving volume and revenue growth while focusing on premiumization. Our ‘UNLOCK 2.0’ initiative aims to accelerate growth, enhance premium offerings, and transform our business operations,” he added.

CFO Commentary:
Manish Gangwal, CFO, highlighted the company’s sustainable and profitable growth. “Our top-line growth exceeded 9% year-on-year, with a 29% increase in PAT. Effective cost management and a focus on premium products have bolstered our EBITDA growth to 13.13% of revenue,” Gangwal stated. He also pointed out the company’s exploration into the EV space, aligning with Gulf Oil’s brand and distribution strengths.

Business and Financial Updates:

• Gulf Oil achieved a quarterly volume growth rate twice that of the industry, driven by strong B2C channel performance and significant growth in Passenger Car Oils and Agri products.
• B2C distribution continued to flourish, with notable gains in both commercial and personal mobility segments.
• Export growth was robust, with Gulf and OEM branded products seeing a significant increase in volume.
• The company registered its highest ever AdBlue® volume in the quarter, growing over 26% year-on-year.
• Gulf Oil maintained its EBITDA margin at 13.13%, with a quarterly EBITDA of ₹116.24 crores, a 25.28% increase from the previous year.

Other Highlights:

• Gulf Oil maximized rooftop solar panel installations at its Chennai facility.
• The company was recognized as the “ESG Champion of India 2024” in the Oil & Gas sector at the Dun & Bradstreet ESG Leadership Summit.
• Initiatives such as Springshed and afforestation in Himachal Pradesh & Uttarakhand were launched.
• Gulf Oil received Gold Awards from Ashok Leyland and Swaraj Motors for top-performing supplier and valuable contributor.

Branding and Marketing Success:

• The association with Team CSK during the IPL season led to significant brand visibility, with the #GulfUnstoppableArmy campaign generating over 400 million digital impressions.
• Gulf Oil’s SUV brand, “Formula SUV,” featured a successful campaign with Hardik Pandya, achieving 123 million digital impressions.
• The launch of Gulf Superfleet Supreme bolstered the company’s presence in the commercial vehicle segment.
• A month-long print-ad campaign featuring Mahendra Singh Dhoni in the Agri segment resulted in double-digit growth.
• Gulf’s partnership with the King of Dirt Championship in South India garnered 8 million social media views, enhancing visibility in the passenger car segment.

Gulf Oil Lubricants India Limited continues to lead the industry with its innovative strategies, robust financial performance, and unwavering commitment to growth and sustainability.

Key highlights (Standalone) are as under:

 (Rs. In Crores, except as stated otherwise)

* Not Annualised