Gulf Oil Lubricants India has reported a good set of second quarter numbers. The profits for the quarter were up 22 percent at Rs 323 crores versus Rs 263 crores for the same quarter last year.
Margins came in at 19.2 percent versus 16.2 percent year over year. The profit after tax was also up 38 percent at Rs 40.4 crore.
“It was a record quarter for the company in terms of volumes and profits despite GST impact,” said Rajiv Chawla, MD, Gulf Oil Lubricants India.
The overall volume growth has been good. Personal mobility, OEM related businesses, and industrial lubricants were the key performers with over 13 percent volume growth overall, said Chawla. The B2C sales were also up, he said.
The prices of crude are up but there is a lag effect on base oil prices, so the company will re-calibrate pricing based on base prices, he said.
The infrastructure segment (customers building roads), which is 6-7 percent of the sale is a bit challenging in terms of cash not coming in as expected and there is also the GST impact.
However, overall 95 percent of businesses are looking much better now.
The strategy has been to increase our market share right across, said Chawala. The key movers have been the B2C and OEM related segment.
Talking about Chennai plant, he said the capacity will come on stream this quarter.
This report published first in Money Control