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Gulf oil Lubricants continued its volume growth trajectory to achieve net revenues of Rs.440.68 crore and Profit after tax (PAT) of Rs. 48.73 crore. On year on year (YoY) basis, net revenues increased by 12.89% at Rs. 440.68 crore from its base of Rs. 390.36 crore in previous year June quarter and PAT grew by 21.43% YoY aided by better product & segment mix, realisation improvement and lower input costs.
The industry witnessed softness due to pressure across auto sector and overall economic sentiments leading to the lubricants industry growth volumes estimates at a flat to marginally negative level during Q1FY20. Despite this, the company achieved an overall volume growth of around 7.5% YoY during the quarter (Core Lubricants volume growth at near double digit) leading to a strong revenue growth of around 13%.
Quarterly Results
For the quarter ended June 2019, Gulf oil Lubricants reported 13% increase in net sales at Rs 440.68 crore as against Rs 390.36 crore in the quarter ended June 2018. The operating profit margins of the company rose 120 bps to 17.7% leading 21% increase in operating profits to 77.88 crore.
Cost of raw material consumed as a percentage to net sales fell 290 bps to 49.4% from 52.3% in corresponding previous quarter and purchase of stock in trade rose 150 bps to 4.5%. Employee benefit expenses fell 30 bps to 5.7% while other expenditure increased 110 bps to 23.7%.
Other income rose 27% to Rs 8.41 crore leading a 21% increase in PBIDT to Rs 86.29 crore. Interest cost fell 23% to Rs 3.4 crore compared to interest expense of Rs 4.4 crore while depreciation increased 61% to Rs 7.95 crore. The resultant PBT increased 21% to Rs 74.94 crore. The company reported a tax expense of Rs 26.21 crore compared to tax expense of Rs 21.66 crore in the corresponding previous year period resulting 21% increase in PAT to Rs 48.73 crore.
Year ended results
For year ended March 2019 Gulf oil Lubricants reported 28% increase in its net sales to Rs 1705.8 crore compared to corresponding previous year period. The operating profit margins fell by 110 bps to 16.6% resulting 20% increase in operating profit to Rs 283.05 crore. Other income was up 13% at Rs 29.54 crore. Interest costs rose 78% to Rs 15.16 crore and depreciation was up 114% at Rs 22.36 crore. As a result PBT rose 13% to Rs 275.07 crore. The effective rate of tax increased to 35.4% compared to 34.7% in the corresponding previous year resulting into 12% increase in PAT to Rs 177.78 crore.
The scrip closed Rs 767 at BSE
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