Highlights of the Concall 

• 53% drop in revenues was due to 48% decline in volumes YoY to 29 million litres (55.4 million litres in Q2CY19) while realisations was lower owing to a scheme announced in Q2CY20 to aid dealers. The scheme ended in the quarter itself.. 

• Covid-19 outbreak has had a disruptive impact on lubricants business, both in OEM factory fills and Bazaar sales. While Apr- midMay'20 were fairly challenging, Jun-Jul'20 have seen recovery and stabilization led by demand revival from agriculture sector and two wheeler segment. 

• Volume recovery momentum looks stable post Jun'20. However, the company has refrained from commenting on the outlook as various states have extended or imposed further lockdowns. A gradual pickup is being witnessed in demand for two-wheelers over other auto segments. 

• The company during the quarter entered into a strategic partnership with Jio-BP as the sole supplier of lubricants and access to 1,400 retail sites, which it plans to expand to 5,500 retail sites. 

• The company has maintained that it would continue focusing on the Personal Mobility segment along with better product mix, cost optimization initiatives and necessary pricing actions to maintain lucrative margins. 

• During the quarter, the company added 1,000 new customers on the retail side with 500 retail sites and 500 customers via virtual engagement. 

• The company has slowed down on the capex at the Silvassa plant but expects the project to come on stream in CY21. This will increase capacity in personal mobility by 40 million litres.