GULFOILLUBNSEMay 28, 2025

Gulf Oil Lubricants India Limited

5,125words
74turns
10analyst exchanges
3executives
Management on call
Ravi Chawla
MANAGING DIRECTOR AND
Manish Gangwal
CHIEF FINANCIAL OFFICER
Sudeep Anand
SYSTEMATIX GROUP
Key numbers — 40 extracted
7%
olume in core lubes of 39,500 kl in Q4, and this has really helped us to also close the year at a 7% growth. This is a result of our continued effort and strategic execution that has led us to deliv
2x
xecution that has led us to deliver another industry-leading performance with volume at more than 2x the industry growth rate, which is around 3%. We also got to record the highest ever revenue cros
3%
ndustry-leading performance with volume at more than 2x the industry growth rate, which is around 3%. We also got to record the highest ever revenue crossing INR915 crore, again up, also supported
INR915 crore
industry growth rate, which is around 3%. We also got to record the highest ever revenue crossing INR915 crore, again up, also supported by the volume growth and improved product mix. We also witnessed a new
INR124.47 crore
ted by the volume growth and improved product mix. We also witnessed a new record for EBITDA at INR124.47 crore. I am also happy to share that our EBITDA margin in Q4 moved up to 13.6%, which is again a higher
13.6%
for EBITDA at INR124.47 crore. I am also happy to share that our EBITDA margin in Q4 moved up to 13.6%, which is again a higher range and also within the band, which we've been prescribing. To talk
INR3,500 crore
024- '2025, with the Q4 performance, has also been a record year. We have passed the revenue of INR3,500 crore and we have increased our market share by nearly 0.5% across all key segments, delivering volume
0.5%
ar. We have passed the revenue of INR3,500 crore and we have increased our market share by nearly 0.5% across all key segments, delivering volume growth, again, as mentioned earlier, more than 2x the
300%
, Tirex, closed the year on a strong note. A record quarter again with triple the revenue, nearly 300%, and also making some money in that. This obviously, lays the seed for a future, which is going t
rs,
The Unstoppables campaign, which was a powerful ad campaign, with all our three brand ambassadors, MS Dhoni, Hardik Pandya and Smriti Mandhana, which was launched in December and really saw a very
12%
e and highest revenue and highest EBITDA for the quarter and full year. Our EBITDA has grown by 12% for the full year and PAT has grown by nearly 17.5%. Complemented to that was a fantastic cash ge
17.5%
quarter and full year. Our EBITDA has grown by 12% for the full year and PAT has grown by nearly 17.5%. Complemented to that was a fantastic cash generation from the operations where we have taken t
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Guidance — 16 items
Manish Gangwal
qa
“We usually have our A&P’s in the range of around 3% to 4%, and we intend to continue with that.”
Manish Gangwal
qa
“As we mentioned, the opportunities and M&A, both in the current business as well as in our evolving new target sector of EV-related opportunities, are in active considerations.”
Manish Gangwal
qa
“That is where we keep evaluating each and every target object.”
Varun
qa
“Do you see any challenges in terms of volume growth of 6%-7%, which you have guided going forward?”
Manish Gangwal
qa
“It will be very difficult to give you a one single figure.”
Yash Nandwani
qa
“Last question was, with crude prices now trending lower in first quarter FY '2026, can we expect EBITDA margins to trend towards the upper end of your guidance, which is 12% to 14% or even surpassing that?”
Manish Gangwal
qa
“Timing-wise, it will be very difficult to predict at this stage because there are a lot of demand supply situations globally in the base oil segment.”
Yash Nandwani
qa
“Should expect EBITDA margin to remain at least at the Q4 level, which is 13.6%?”
Prashant Kale
qa
“Is there any plan to increase the shareholding more than 51% going forward?”
Prashant Kale
qa
“Is there any plan to increase it further?”
Risks & concerns — 6 flagged
It generates a huge amount of cash, but then it's very difficult to find right opportunities to deploy the cash, right?
— Prashant Kale
It would be great if you could give a possibility of distributing some of the cash and then bringing it to the optimum level so that it can be utilized in an efficient way, because finding a INR1,000 crore opportunity, it would be difficult, isn't it?
— Prashant Kale
It will be very difficult to give you a one single figure.
— Manish Gangwal
The timing is difficult to predict, but it eventually happens, when the crude remains at these levels.
— Manish Gangwal
Timing-wise, it will be very difficult to predict at this stage because there are a lot of demand supply situations globally in the base oil segment.
— Manish Gangwal
Both put together, yes, we are also optimistic, but timing is difficult at this stage, to say.
— Manish Gangwal
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Q&A — 10 exchanges
Q
Just a few questions. One in terms of your advertising sales and promotion expenses and sales and marketing, what has been the outlook for the year? What is the plan for the next coming year?
Manish Gangwal
We usually have our A&P’s in the range of around 3% to 4%, and we intend to continue with that. Okay. In the sales and marketing, what has the expenses been? Sales and marketing expenses are mainly the royalties paid to various OEMs for our OEM businesses. The second question is among the various segments you operate in, be it auto, OEM, as well as aftermarket and also industrial and non-auto. Which segment grew the lowest in the last year and what are the reasons attributed to that? All our segments, wherever we are focused in, has grown ahead of the market. Of course, you would have challeng
Q
Congratulations for a good set of numbers. My question is that we are sitting on a huge amount of cash, after paying dividend. By September, we will have INR1,200 crore of cash. I would like to know what is the plan for using this cash?
Manish Gangwal
As we have mentioned, the Board has been very cognizant and have been consistently increasing their dividend payout. At the same time, we have been highlighting in our earlier con-calls that we are looking at investments, not only in our lubricant business, especially focusing on around industrial businesses and some of our adjacencies. At the same time, we keep looking at opportunities in the evolving EV segment, where we have already made a few investments in the last 3 years. We continuously look forward to this evolving sector and to build our business, both organically and inorganically w
Q
Sir, could you provide the revenue figures for the full year for AdBlue and Battery?
Manish Gangwal
We don't give separate AdBlue revenue figures. For Battery, I think for the full year the figure was around INR80 crore. For AdBlue it is 140,000 kl. Okay. What kind of price hikes are expected in the coming year, any price hikes? So based on raw material pricing, it's generally the market follows that. . At the moment, as you know, the base oils are partly dependent on crude. Crude is quite steady. We hope that this remains steady. Obviously, the price moves happen based on cost movements, So at the moment, we have to just wait and watch and see how that goes. Currently, the the price is more
Q
What are the core lubricants volume in this quarter?
Manish Gangwal
The core lubricant volume was 39,500 kl. How has the volume breakup been in this quarter in terms of diesel engine oil, personal mobility, industrial, etc.? It's more or less has been similar, except that diesel engine oil was slightly lower by 2%, and personal mobility was higher at 24%. Diesel engine oil was around 36% and personal mobility went up, because of a very good double-digit growth in motorcycle oil. It is back to around 24% in terms of overall component. These are two changes, rest are all remains similar. How has the volume growth trend been in each of them? Also, how has been fa
Q
Congratulations on a great set of numbers. Just one question. What is the share of export revenue in this quarter and on a full year basis?
Manish Gangwal
You're talking about volume share of exports? Yes, volume. Usually, we used to have around 5%-6% in terms of our volume mix in exports. It has now gone up to now 7%-8%.
Q
This question is regarding our subsidiary, Tirex. Is there any plan to increase the shareholding more than 51% going forward? Also are they planning to enter into the export market also for these DC chargers?
Ravi Chawla
We are definitely seeing very good acceptance for the chargers that Tirex is making. We also have a technology road map to improve on those for the Indian market. The opportunity of going to other markets is definitely present and we are looking at that. There are some certifications in that, which we are progressing on. We also see that as a good opportunity. Of course, what we've been guiding is mainly the Indian market where we have indicated INR400 crore to INR500 crore in 4, 5 years, which could be even better, but we would like to go with that view now. The exports will also open up oppo
Q
In the previous call, you mentioned that you are expecting the EV charger subsidiary to grow by 2x every year. Given it has already gone up from 9 months ending to 1 year from INR40 crore, to almost INR79 crore, do you still hold the guidance? Is there any update?
Manish Gangwal
EV Chargers is a fast-growing segment, and especially the DC chargers, being a very fast- growing segment. We intend to keep increasing our revenues at a very fast pace and are continuously looking at how we can attain INR400 crore to INR500 crore turnover in next 3 to 4 years is what we are looking at. On the data center business, I'm aware the overall volumes are very low. If I'm correct, this is 14 million tons if the overall data centers get converted to liquid cool. Is there any development? Do you really see any traction as of now? Or is there some gestation period involved? How do you s
Q
Congratulations on a good set of numbers. I had a few questions regarding AdBlue. Could you could help us with realization per liter and margins for the same and also the volumes in Q4.
Manish Gangwal
For Q4, AdBlue volume was 37,000 kl, and the full year volume is 140,000 kl. Realization varies, again, from segment to segment and from OEM to retail, but on a ballpark basis, you can take a realization of around INR50 on an average, INR45 to INR50. Sure. The next question is, sir, could you throw some light on the bigger margin or bigger commission as a percentage of our sales? In our B2C business, we have various competitive brand strengths. Based on our strength, there is a margin mix in terms of its trade margin. Then, there are other incentives which go for development of the market. The
Q
Congratulations for a good set of numbers. Regarding volume breakup, how has different segments performed during the quarter, sir, if you can give some light on that?
Manish Gangwal
As a mix, we would say that we have already highlighted personal mobility has grown double digit, diesel engine oil also has grown high single digit and industrials are also in the high single digit for the quarter. Okay. Regarding AdBlue, what volume growth we are looking at over the next 1 to 2 years? What kind of growth are we guiding for? Now we have reached the base of around 140,000 kl in AdBlue. We believe that now our growth in AdBlue will continue to be in the range of 10% to 15% in terms of volume. We are only playing in a very niche, high-end quality consious buyers segment, where A
Q
Thank you. I think for us, the financial year performance has been very strong. With all of our strategies, and I think at the renewed passion, we want to really look at taking this strong momentum and take Gulf Oil growth to the next level. Our outlook is that we will look at 2x the market, and of course, in some segments more than that, we are confident of that. We are also confident that we'll be able to gain market share across all our segments, better product mix. We will focus ahead of the market growth in key segments like diesel engine oil and MCO, where we have good strength and highe
Management
Speaking time
Manish Gangwal
22
Moderator
12
Ravi Chawla
11
Prashant Kale
7
Yash Nandwani
5
Lakshminarayanan
4
Varun
4
Sudeep Anand
3
Misha
2
Dhaval Popat
2
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Opening remarks
Sudeep Anand
Thank you, Shruti. On behalf of Systematix Institutional Equities, we welcome you all to the Q4 and FY '2025 conference call of Gulf Oil Lubricants India Ltd. We would also like to thank the management for giving us the opportunity to host this call. From the management side, we have Mr. Ravi Chawla, Managing Director and CEO; and Mr. Manish Gangwal, CFO. I'll now hand over the call to the management for the opening remarks, followed by the Q&A session. Over to you, sir.
Ravi Chawla
Thank you. Good afternoon, everyone. Welcome to the Q4 call, which was the last quarter of the last financial year. We're truly delighted to obviously share with you that Q4 has been a record quarter for us in terms of our volumes, revenue and EBITDA. We delivered our highest volume in core lubes of 39,500 kl in Q4, and this has really helped us to also close the year at a 7% growth. This is a result of our continued effort and strategic execution that has led us to deliver another industry-leading performance with volume at more than 2x the industry growth rate, which is around 3%. We also got to record the highest ever revenue crossing INR915 crore, again up, also supported by the volume growth and improved product mix. We also witnessed a new record for EBITDA at INR124.47 crore. I am also happy to share that our EBITDA margin in Q4 moved up to 13.6%, which is again a higher range and also within the band, which we've been prescribing. To talk about the year, I would just like to sp
Manish Gangwal
Thank you, Ravi. Good afternoon, everyone. As Ravi mentioned, we ended the year on historic highs in terms of volume, revenues and EBITDA, not only for the quarter but also for the full year. On all three parameters, we have recorded highest volume and highest revenue and highest EBITDA for the quarter and full year. Our EBITDA has grown by 12% for the full year and PAT has grown by nearly 17.5%. Complemented to that was a fantastic cash generation from the operations where we have taken the cash from operation for the year at INR423 crore as against INR348 crore last year. With that, the cash on balance sheet at the year-end for the first time has crossed INR1,000 crore mark and is at INR1,027 crore, which is the historic high. The Board of Directors of the company have been very enthusiastic and happy about that and declared a higher payout ratio at 65%, announcing INR28 final dividend for the year,in addition to the INR20 interim dividend, which was paid in February. The total divid
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