An oil cap sits in the engine bay of a car. (Photographer: Simon Dawson/Bloomberg)

Gulf Oil Targets 20% Volume Growth For This Year

Gulf Oil Lubricants India Ltd. expects its sales volume to grow anywhere between 14 percent and 22 percent in the ongoing financial year, said Managing Director Ravi Chawla.

“We are hoping to hit the 20-percent mark,” Chawla told BloombergQuint. The engine oil maker, according to Chawla, has seen a 30 percent volume growth in the first half of the year, owing to a one-off low margin institutional order from the government for 1,750 kilolitres. That compares with 14 percent volume growth for the company and 3 percent growth for the industry in financial year 2017-18, Chawla said.

While the core volumes have been expanding, the company, according to Chawla, increased prices in the business-to-consumer segment to protect its Ebitda margin from rising oil prices and a fall in the value of rupee. Now, as the currency stabilises and oil prices correct, Gulf Oil expects margins to improve. “We want to be in the range of 16-18 percent Ebitda margin and it will happen,” Chawla said. “But we’ll have to wait and see what the competition is going to do.”

Watch the entire conversation here: