Gulf Oil Lubricants hit record high on strong Q1 results

An oil well is seen near Denver, Colorado. Photo: Reuters
Gulf Oil Lubricants India hit a record high of Rs 657, up 5% on the National Stock Exchange (NSE) in intra-day trade, after the company reported 52.2% year on year (YoY) jump in net profit at Rs 31.16 crore for the quarter ended June 30, 2016 (Q1FY17), on the back of higher volume growth. The Hinduja Group company had profit of Rs 20.47 crore in the year-ago quarter.

Net revenues during the quarter under review grew 23.1% at Rs 284 crore against Rs 230 crore in the corresponding quarter of the previous fiscal.

EBIDTA (earnings before interest, taxes, depreciation and amortization) margins expanded 203 basis points to 17.09% in Q1FY17 from 15.06% in previous year quarter on account of volume growths and steady margins.

The company said its initiatives on distribution expansion started showing impact as its Channel Business grew double digit in volumes after many quarters and Gulf branded diesel engine oils(DEO), motorcycle oils (MCO) and passenger car motor oils (PCMO), all recorded double digit volume growth during the quarter.

B2B businesses including OEM volumes have also continued their growing trend recording double digit growth. Added to this, an Institutional order also boosted volumes for the quarter, it added.

At 12:04 pm, the stock was up 5% at Rs 650 on the NSE as compared to 0.17% gain in the Nifty 50 index. A combined 113,724 shares changed hands on the counter on the NSE and BSE.

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