Gulf Oil Lubricants Posts Robust Q3 FY25 Results, Announces Interim Dividend of Rs 20 Per Share

Introduction:

Gulf Oil Lubricants India has pronounced sturdy financial performance for Q3 FY25, with net earnings rising through 21.Fifty nine% 12 months-on-12 months (YoY) to Rs ninety eight.17 crore. This marks a huge milestone for the organisation, reflecting its persisted resilience amid macroeconomic challenges. The upward thrust in profit was supported by using a stable 10.Seventy two% growth in sales from operations, reaching Rs 904.88 crore in comparison to the equal region final year.

Key financial highlights:

Profit Before Tax (PBT): Increased by 20.50% YoY to Rs 130.71 crore.

EBITDA: The company posted an EBITDA of Rs 122.20 crore, a growth of 10.03% YoY, with an EBITDA margin of 13.50%, slightly down from 13.59% in Q3 FY24.

Despite the ongoing macroeconomic headwinds, Gulf Oil has strategically focused on expanding its presence and enhancing its product offerings. The company achieved its highest-ever quarterly volume, surpassing the Rs 900 crore mark for the first time. The solid financial growth was driven by an 11% year-on-year rise in topline revenue, underlining its robust market position and operational efficiency.

Gulf Oil Lubricants Reports Strong Q3 FY25 Performance, Announces Rs 20 Interim Dividend:

Brand Building and Market Expansion

CEO Ravi Chawla emphasized the company’s adaptive approach, particularly through their “Unstoppables” campaign, which effectively merged cinema and sports in a unique 360-degree branding initiative. The campaign, featuring esteemed brand ambassadors, continues to reinforce Gulf Oil’s consumer-centric strategy.

Chawla expressed optimism about improving demand in both the B2B and B2C segments, with expectations for further growth supported by increased government capital expenditure and infrastructure projects.

The company also remains focused on expanding its electric vehicle (EV) charging segment, which is expected to contribute to Gulf Oil’s long-term strategic vision.

Healthy Financials and Strategic Growth Plans

CFO Manish Gangwal highlighted the company’s sustained healthy performance, noting the double-digit revenue growth and strong control over input costs. The company’s EBITDA-to-revenue ratio reached 13.50%, surpassing its own target range, which demonstrates its operational efficiency even amidst challenging market conditions. For the nine-month period, the company’s net profit grew by 21.54% to Rs 270.63 crore, alongside an 8.56% increase in revenue to Rs 2,639.28 crore.

Interim Dividend and Future Outlook

Looking ahead, Gulf Oil Lubricants is optimistic about continued growth and expansion. The company’s established market leadership in India’s lubricant space, along with its growing distribution network, positions it well for future growth, especially in the 2-wheeler battery segment.

Conclusion:

Gulf Oil Lubricants has delivered strong financial results, with impressive growth in both revenue and profit. The company’s strategy of adapting to market challenges while driving brand-building initiatives and expanding into new segments, such as EV charging, signals a bright future. With a healthy dividend payout and strategic growth initiatives in place,

Gulf Oil remains one of the most promising players in India’s lubricant market.

Frequently Asked Questions FAQ:

  1. What are the key highlights of Gulf Oil Lubricants India’s Q3 FY25 results?
    • Gulf Oil Lubricants India reported a 21.59% YoY increase in net profit, reaching Rs 98.17 crore for Q3 FY25. The company’s revenue from operations also saw a rise of 10.72% YoY, reaching Rs 904.88 crore. Additionally, Profit Before Tax (PBT) rose by 20.50% to Rs 130.71 crore, and EBITDA grew by 10.03% YoY to Rs 122.20 crore.
  2. How did Gulf Oil Lubricants perform in the 9-month period of FY25?
    • Over the nine months of FY25, Gulf Oil Lubricants registered a 21.54% YoY growth in net profit, which reached Rs 270.63 crore. The company’s revenue also grew by 8.56% YoY, reaching Rs 2,639.28 crore.
  3. What is the interim dividend declared by Gulf Oil Lubricants?
    • Gulf Oil Lubricants has declared an interim dividend of Rs 20 per share for FY25. The record date for the dividend is February 14, 2025.
  4. What strategic initiatives is Gulf Oil Lubricants focusing on?
    • Gulf Oil Lubricants is focusing on premiumization, expanding its EV charging segment, and ensuring consistent, profitable volume-led growth. The company’s strategic initiative UNLOCK 2.0 aims to drive long-term success by transforming its core business and increasing its market share in new segments like EV infrastructure.
  5. What impact did the “Unstoppables” campaign have on the company’s performance?
    • Gulf Oil’s “Unstoppables” campaign, which blends cinema and sports, helped to reinforce the brand’s consumer-centric approach. The campaign features the company’s brand ambassadors and has played a crucial role in building brand equity and market visibility, contributing to the strong performance seen in Q3 FY25.
  6. How has Gulf Oil Lubricants maintained profitability despite market challenges?
    • Despite macroeconomic challenges, Gulf Oil Lubricants has remained resilient by focusing on operational efficiency, achieving double-digit revenue growth while keeping input costs stable. Their EBITDA margin stood at 13.50%, reflecting strong profitability in a challenging market environment.
  7. What is Gulf Oil’s outlook for the future?
    • Gulf Oil Lubricants is optimistic about improving demand in both B2B and B2C segments. The company anticipates further growth driven by an uptick in government capital expenditure and infrastructure activities. Additionally, Gulf Oil continues to invest in new growth areas such as the EV charging segment for long-term success.
  8. What are Gulf Oil Lubricants’ main products and market segments?
    • Gulf Oil Lubricants offers a wide range of automotive and industrial lubricants, catering to both B2B (business-to-business) and B2C (business-to-consumer) segments. The company also has a growing presence in the 2-wheeler battery segment and is expanding its footprint in the EV charging infrastructure market.
  9. Who is the leadership behind Gulf Oil Lubricants’ performance?
    • Ravi Chawla, the Managing Director & CEO, and Manish Gangwal, the CFO, are leading Gulf Oil’s growth. Their focus on driving profitability, strategic brand-building, and long-term transformation through the UNLOCK 2.0 initiative has contributed significantly to the company’s success.
  10. How can investors and stakeholders benefit from Gulf Oil’s performance?
    • Gulf Oil’s strong financial results, strategic growth initiatives, and stable dividend payout provide attractive opportunities for investors looking for long-term value. The interim dividend of Rs 20 per share enhances the appeal for stakeholders, while the company’s expanding presence in emerging sectors like EV infrastructure offers future growth potential.

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