Gulf Oil Lubricants India has reported a 36.84% jump in net revenue in FY23 to INR 2,999.10 crore, up from INR 2,191.64 crore it achieved in the last fiscal. Q4FY23 revenues for the company grew 23.97% from the corresponding period last fiscal to INR 792.05 crore as against INR 638.93 crore in Q4FY22.
Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India said the company delivered market leading double digit volume growth in core lubricants and 20% growth in EBITDA for FY23, “which witnessed significant turbulence in input costs and in general hyper inflationary environment.”
The core lubricants portfolio from the OEM/B2B segments witnessed robust volume growth, while the personal mobility segment also recovered well with double digit growth. The growth was achieved in spite of the “bazaar”/ retail markets continuing to face overall slower demand conditions, said the company.
The company gained market share in FY23 across B2C, B2B and OEM segments with volume growth at 3-4X of industry growth. While the B2C and B2B segments recorded double digit volume growth for the year, revenue growth has been even higher due to several price increases taken to pass on the input cost increases.
Q4FY23 witnessed some inputs, mainly base oils and rupee stabilising, which also resulted in some cooling-off in the end pricing for customers. However, many inputs like additives among others continue to be substantially higher than earlier years still weighing heavy on the total cost of products. Hence, continuous margin management actions remain a key focus area for the company, the release stated.
New Initiatives
Other initiatives undertaken during the quarter included tractor engine oil change camps aimed to drive trials and purchases for the products in the agri segment. Additionally, Gulf Bikestops & Gulf Carstops have been an important channel for Gulf range of lubricants. The channel has performed well and has been the leading channel for the company on the B2C retail side, from a volume growth point of view.
Moreover, during the quarter, the company gained further traction in EV fluids and tied up with two new players – OSM (Omega Seiki Mobility) and Virya Mobility 5.0 to supply EV fluids.
“We continue to look at the evolving e-Mobility space in India and are exploring areas where Gulf can play a key role basis synergies with our current strengths and future strategies,” Chawla stated. There is significant traction in Adblue (diesel exhaust fluid) as well, Chawla said.
Beyond Mobility
Q4FY23 also saw brand building efforts by increasing investments in multiple media, digital campaigns and BTL activations.
Chawla said the company’s investments have been reinforced this year and enhanced significantly from Q4 with mega multi-media campaign during IPL through MyJio & Jio Cinema and its unique “Gulf Fan Academy” property, which is currently ongoing and leading to millions of impressions and consumer connects online.
“Consumer response to our campaigns has been overwhelming, helped by the huge fan following for our brand ambassador and legend MS Dhoni and the Chennai Super Kings team,” he concluded.
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