Gulf Oil Lubricants rally over 4% on dividend announcement of 1250%

Gulf Oil Lubricants India is a small cap company that recorded a market cap of ₹2,158 Cr during Friday's closing session. Leading lubricant producer and distributor in India is Gulf Oil India.

“The Board of Directors have recommended a dividend of Rs. 25.00 per equity share (i.e. 1250 % on Face Value of Rs. 2.00 per equity share) for the financial year 2022-23 subject to approval of members at Annual General Meeting. The proposed dividend increases the payout ratio to more than 50% for the year,” said Gulf Oil Lubricants in a stock exchange filing.

During Q4FY23, the company recorded a net revenue of ₹792.05 Cr up by 23.97 % YoY from ₹638.93 Cr in Q4FY22. Its EBITDA reached ₹87.54 Cr during the quarter ended March 2023 down by 1.74% YoY from ₹89.09 Cr during the quarter ended March 2022. The company said its Q4FY23 net profit stood at ₹62.17 Cr down by 1.92% YoY from ₹63.39 Cr recorded during the year-ago quarter. 

In FY 22-23, Gulf Oil Lubricants India said its net revenue stood at ₹2999.10 Cr up by 36.84% YoY from ₹2,191.64 Cr in FY 21-22. Its EBITDA stood at ₹342.84 Cr during 12MFY23 up by 20.09% YoY from ₹285.49 Cr in 12MFY22 and its net profit reached ₹232.30 Cr compared to ₹211.08 Cr, representing a growth of 10.05% YoY.

Commenting on the performance, Mr. Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India Ltd., said, “FY 23 marks a strong performance for us and we have once again delivered market leading double digit volume growth in core lubricants and 20% growth in EBITDA for the year which witnessed significant turbulence in input costs and in general hyper inflationary environment. Our distribution growth in B2C continues and our market shares further improves across B2C, B2B and OEM segments as we have grown 3-4x of Industry growth. Our investments in brand have been reinforced this year and enhanced significantly from Q4 with mega multi-media campaign during IPL through MyJio & Jio Cinema and our 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. We are also seeing significant traction in Adblue, an environment friendly product and we are continuously enhancing our reach and capabilities to cater to this growing demand. We continue to look at evolving e-Mobility space in India and exploring areas where Gulf can play a key role basis synergies with our current strengths and future strategies”.

The shares of Gulf Oil Lubricants India closed today on the NSE at ₹439.10 apiece up by 4.11% from the previous close of ₹421.75.