Gulf Posts Jump in Profits


Gulf Oil Lubricants India Ltd. reported a 38 percent jump in its fourth quarter net profit, thanks to sales growth across all key segments.

The company posted a net profit of Rs 30.04 crore (Rs 300.4 million or U.S. $4.5 million) from January to March, up from Rs 21.75 crore in the same period a year earlier.

Other income jumped to Rs 5.86 crore during the quarter, from Rs 2.30 crore in the fourth quarter of 2014-2015.

Gulf Oil Lubricants, which sells a wide range of automotive and industrial lubricants, greases and two-wheeler batteries, reported that net sales in the quarter increased 3 percent year on year to Rs 271.27 crore.

The company recorded double-digit volume growths in motorcycle oils, key OEM volumes, and sale to direct customer in infrastructure and industrial segment. An institutional order also enabled the company to clock an overall double digit growth in volumes, Gulf Oil Lubricants said in a statement. The diesel engine oil segment also witnessed positive growth.

For the fiscal year 2015-16, Gulf Oil Lubricants posted a net profit of Rs 100.31 crore, up 30 percent from a year ago. Net sales rose 4.5 percent year on year to Rs 1,008.67 crore.

The company said that it gained further market share in the motorcycle oil segment and achieved double digit growth during the year, helped by a television campaign. Earlier in the year, it also launched Gulf Pride Scooter oil to cater to the rising sales of scooters in the market.

Gulf Oil Lubricants stated that its Bike Stops, a branded workshop concept for the motorcycle segment, contributed roughly 15 percent of overall motorcycle oil volumes during the year. The company also saw a pickup in the commercial vehicles business lead the diesel engine oil segment during period.

The company, a part of Hinduja Group, has more than 300 distributors and over 50,000 retailers in India.

Gulf Oil Lubricants, which revamped its passenger car motor oil segment to focus on fast growing synthetic products lineup, said that it is optimistically looking at the new year with continuing focus on segment volumes and market share growth.

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