Shares of a leading lubricant company jumped by 12 percent in Wednesday’s trading session after reporting an increase in its net profit by 19 percent YoY, during Q4FY24.
With a market capitalization of Rs 4,612.98 crores the shares of this prominent Indian lubricant company Gulf Oil Lubricants India Ltd were trading at Rs 1,066.05, up 13 percent from its previous closing price of Rs 939.90.
Its revenue from operations grew by 10 percent YoY from Rs 2,999 crores in FY22-23 to Rs 3,301 crores in FY23-24. From a QoQ standpoint, the company grew by 8 percent from Rs 792 crores in Q4FY23 to Rs 869 crores in Q4FY24.
The company’s net profits grew by 19 percent YoY from Rs 259 crores in FY22-23 to Rs 308 crores in FY23-24. From a QoQ standpoint, the company grew by 38 percent from Rs 62 crores in Q4FY23 to Rs 86 crores in Q4FY24.
The firm’s EBITDA margins grew by 13.49 percent in Q4 FY23-24. EBITDA during the. Full-year crossed Rs 400 crores for the first time reaching Rs 419.38 crores with a growth rate of 22.33 percent.
The reasons for its better performance for the year was due to maintained growth momentum, with a volume growth rate of 2x of Industry, led by double-digit growth of mining and B2B segments.
The company’s profits grew tremendously because of its Increased focus on premium product sales. Its B2C sales got a boost by better marketing and sales efforts and also leveraging its strong distribution network.
In addition, the company has plans to expand to diversify into sectors like battery technology and the EV infrastructure market. They have also introduced two new engine oil products for the increasing SUV engine oil demand – the Gulf Formula SUV 5W-30 and the Gulf Max SUV 5W-30.
A final dividend of Rs 20 per equity share of face value of Rs 2 each was announced for the financial year ended March 31, 2024.
The stock has generated an overall multi-bagger return of 142.46 percent over the past year, and a 68.64 percent yield for the past six months.
Headquartered in Mumbai Gulf Oil Lubricants India Limited (GOLIL) was incorporated in 2008. The company is engaged in the production of automotive and industrial lubricants for India and all over the globe. Its product portfolio includes Automotive lubricants, Ad-blue, Industrial Lubricants, Batteries, E.V. fluids, and Marine lubricants.
Written by Zahal Riyas
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