Dolat Capital: Gulf Oil Lubricants - Living The Promise 

Dolat Capital Report

Gulf Oil Lubricants India Ltd. had a roller coaster FY20 on a macro level as well as company level.

Ambiguity around goods and service tax, volatility in raw material price, crude oil and currency movement impacted the volume growth and profitability.

Gulf Oil Lubricants’ focus areas has been digitization, capturing greater opportunities, growing return on investments, brand building and safety and health of employees and people connected with the Company.

Their new way forward strategy will take into account all these aspects, towards consistent creation over the long term. This is their strong commitment to their stakeholders.

The coronavirus crisis has affected demand for lubricants; however, a new normal is waiting to emerge as the situation continues to improve.

The Company expects to grow at two to three times of the industry, however, may see some delays in FY21 volumes till the economy has not recovered fully and pent up demand coming, before recovering in FY22.

The volume growth will continue to outperform the industry from FY22, where growth will come from new product launches, original equipment manufacturer tie ups and expansion of distribution channels.

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