Gulf Oil Lubricants India reports 25% higher revenues in Q3

Gulf Oil Lubricants India Limited, a Hinduja Group Company, reported that its third quarter revenues rose 25% year-on-year, while nine-month revenues increased 37% year-on-year. The unaudited financial results were for the quarter and nine months ending December 31, 2021.

During the quarter ending December 31, 2021, the company achieved net revenue of INR601.82 crores (USD80.3 million) and profit after tax (PAT) of INR58.63 crores (USD7.8 million) as against net revenue of INR481.86 crores (USD64.3 million) and PAT of INR64.00 crores (USD8.5 million) respectively in the quarter ending December 31, 2020.

During the nine-month period ending December 31, 2021, the company achieved net revenue of INR1,552.71 crores (USD207.2 million) and PAT of INR147.68 crores (USD19.7 million), against net revenue of INR1,134.77 crores (USD151.4 million) and PAT of INR140.30 crores (USD18.7 million) respectively for the nine months ended December 31, 2020.

The company continued to report very good revenue growths for the quarter at 25% and for the nine month period at 37% in spite of retail market sentiments being weak during the third quarter with excellent growth coming from Industrial/B2B segment, OEM Franchisee Work Shops (FWSs) and from customers in the infrastructure sector. B2C also saw good volumes in diesel engine oils for commercial vehicles and passenger car motor oils. Gulf Oil said it increased its market share in all these segments during this period.

On a high base of last year’s same quarter when retail markets had seen a lot of pent-up demand and costs were lower, the company performed relatively better across all the B2B segments (Direct Industries, Infrastructure customers, Industrials). OEM-related sales (Gulf has a tie-up with more than 20 OEM’s across several segments), which has achieved excellent growth as servicing /oil change requirements in workshops increased. In the retail bazaar segment, as mentioned earlier, growths were achieved in the commercial vehicle oil (CVO) and passenger car motor oil (PCMO) segments. The agriculture and motor cycle Oil (MCO) segment in the bazaar was subdued as compared to last year due to lower farm production and a slowdown in the rural economy. The company has undertaken various targeted BTL, distribution & customer acquisition initiatives to grow and retain its consumer bases in all key segments and to set up the platform to further improve sales in the upcoming months.

The company continues to invest in building its brand and driving consumer value propositions (CVPs) for its sub-brands in each segment. In the MCO segment, the campaign of ‘Dhoni x Dhoni’ which propogates the CVP of “Consistent Insta pick-up” for Gulf Pride bike engine oil was re-run as a second burst in the media. The campaign was received very well by consumers as well as trade, channel partners and influencers. It ran through on TV as well as digital media generating very high engagement. Gulf Oil’s social media handles/pages continue to have among the best engagement rates in terms of likes, shares and comments in the industry.