Blue plastic automobile oil containers move along the bottling line at a blending plant in Russia. (Photographer: Andrey Rudakov/Bloomberg)

Muted Auto Sales To Have Minimal Impact, Gulf Oil Says

Gulf Oil Lubricants India Ltd. expects the impact of muted auto sales to be offset by pre-buying of vehicles ahead of the new emission norms.

“The full-year impact of current auto slowdown should be very minimal,” Manish Gangwal, the company’s chief financial officer told BloombergQuint, adding that only factory field volumes are slightly impacted. “But we see a BS VI pre-buying which will help us from the second quarter onwards next year.”

The government plans to implement Bharat Standard VI emission norms with effect from April 2020.

Gulf Oil also plans to expand its capacity utilisation level to 80-85 percent in the future, Gangwal said.

Key Highlights: (YoY)

  • Revenue rose 29.8 percent to Rs 462 crore.
  • Net profit rose 17.2 percent to Rs 49.8 crore.
  • Ebitda rose 18.7 percent to Rs 73 crore.
  • Operating margin at 15.8 percent versus 17.3 percent.
  • Declared dividend of Rs 4.5 per share.

Watch the full interview here: