Gulf Oil announces buyback of sharesGULFOILLUB - 689 Change: -7.90 (-1.13 %)
News: Revenue increased 24.9% YoY (and 12.8% QoQ) to Rs.601.8 crore in Q3FY22. Gross margin was Rs.238.4 crore against Rs.231.2 crore in Q3FY21. EBITDA was Rs.77 crore, down 7.6 % YoY. PAT stood at 58.6 crore, down 8.4% YoY and flat QoQ. The company has announced buyback of shares with maximum buyback size of Rs.85 crore (3.5% of market cap) at a price of Rs.600/share through tender offer route and record date for the same is February 21, 2022.
Views: Gulf Oil reported double-digit volume growth in industrial segment. In retail segment, CVO and PCMo segments reported growth while agri and MCO was subdued YoY. While we await sales volume data, overall profitability was impacted by high raw material costs. Post the recent correction in stock price, we believe the proposed payout (~26% premium to closing price on February 9) is attractive for minority shareholders. Going ahead, base oil costs trend and volume growth will be key monitorable for the company.