Gulf Oil Expects Arm Tirex Transmission To Achieve Rs 500-Crore Turnover In Next Four Years

Gulf Oil Lubricants India Ltd. is expecting its subsidiary Tirex Transmission Pvt. to double its turnover annually for the next three to five years, according to Manish Gangwal, the chief financial officer of the company.

In August 2023, Gulf Oil Lubricants India had acquired a 51% controlling stake in Tirex Transmission for Rs 103 crore, as part of a strategic initiative to boost its presence in the electric vehicle segment.

Talking to NDTV Profit, Gangwal said that he expects Tirex to achieve Rs 500 crore in turnover in the next three to four years.

“When we acquired Tirex in October 2023, their FY23 turnover was Rs 12 crore. We doubled it in FY24 to Rs 25 crore. In H1 itself, Tirex has delivered Rs 25 crore, growing nearly 300% compared to H1 last year,” he said.

“Overall, the demand is very good and we believe that the company can at least double the turnover every year for the next three to five years. We are aiming at Rs 500-crore turnover in the next three to four years from this acquisition,” Gangwal added.

The top executive said that his company wants to look at the EV value chain and assess its role in it.

“Manufacturing of chargers is a good opportunity and as EVs grow, there will be a requirement of more and more chargers for EVs, so that’s why we started acquiring companies,” he said.

The CFO noted that after acquiring Tirex and Indra Technologies, Gulf Oil Lubricants has end-to-end solutions for EV charging.

“We acquired Indra Technologies in the UK which has an expertise in slow AC home chargers for cars. We acquired Tirex Transmission based in Ahmedabad, they have DC fast charging products. We now have complete end-to-end charging solutions for our customers,” Gangwal said.

Gulf Oil’s Ebitda margins for the first half of the ongoing fiscal stood at 12.88%, improving from 11.97% in the same period of the preceding fiscal. 

Gangwal projected the company is likely to achieve an Ebitda margin over the 12-14% range in the second half of the fiscal if crude oil price remains stable.

“We have been guiding around a 12-14% Ebitda margin. We have delivered it in H1 and we are hopeful it will be slightly even better in H2,” he said.

Shares of Gulf Oil Lubricants Ltd. ended flat at Rs 1,102 apiece on the NSE on Friday, compared to 0.91% rise in benchmark Nifty 50.