Gulf Oil Lubricants India Ltd. reported improved quarterly revenues and sales volumes for the quarter ended March 31 and a large increase in revenues for the fiscal year ended that month, citing a pickup in demand conditions in India because travel normalized after restrictive initial COVID-19 lockdowns.
The performance came despite a business environment of significant challenges, including rising input costs, supply chain disturbances and an unabated inflationary cycle, which requires close attention to pricing margins, Ravi Chawla, managing director and CEO of Gulf Oil Lubricants India, noted in its earnings news release.
“Despite inflation mainly linked to recent crude related spikes, causing short-term pressures, the company has the ability and is taking timely price interventions to manage margins,” Chawla explained. “Due to the continuously upward trend in input cost, margin management will continue to remain a key focus area. Our focus will continue to be profitable volume growth and rebooting initiatives on the ground as normalcy is visible on the COVID front with free movement of goods and people.”
Gulf Oil Lubricants India, a Hinduja Group company, reported standalone net profit of Rs 63.4 crore (Rs 634 million or U.S. $8.2 million) for the quarter ended March 31, a 6% increase from Rs 59.8 crore in the same quarter last year.
For its full fiscal year, which ends March 31, Mumbai-based Gulf reported net profit also increased by 6%, to Rs 211.1 crore.
Net revenue – revenue from operations – for the quarter rose 24% to Rs 638.9 crore, up from Rs 517.4 crore. For the fiscal year, the company’s net revenue jumped 33% to Rs 2,191.6 crore, improving from Rs 1,652.2 crore.
The company said its diesel engine oils for commercial vehicles and passenger car motor oils each experienced very good volume growth in the quarter and fiscal year, as the company increased its market share in both business to consumer and business to business segments.
The company continued to see improved demand pickup, including in rural areas, Chawla noted. An agriculture-related highlight during the quarter was a new original equipment manufacturer tie-up with International Tractors Ltd. (Sonalika) for factory fill, OEM workshop and distributor channel as well as co-branded sales in retail.