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Gulf Oil Lubricants India Ltd
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Ladies and gentlemen, good day, and welcome to the Gulf Oil Lubricants India Limited Q4 FY '23 Earnings Conference Call hosted by YES SECURITIES India Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Nitin Tiwari from YES SECURITIES India Limited. Thank you, and over to you.
Thanks, Ryan. Good day, ladies and gentlemen. On behalf of YES SECURITIES, I welcome everyone to Gulf Oil Lubricants India Limited's Fourth Quarter FY '23 Earnings Call. We have the pleasure of having with us today, MD of Gulf Oil Lubricants, Mr. Ravi Chawla; and CFO, Mr. Manish Gangwal.
I will now hand over the call to Mr. Chawla for his opening remarks, which shall be followed by a question-and-answer session. Over to you, sir.
Thank you, Nitin. Good day to everybody, and welcome to the Q4 call for Gulf Oil Lubricants. Happy to share with all of you that in quarter 4, we have continued to gain our market share strongly across segments. So that was a big positive in terms of our volume sales, our growth in each of the segments. We are happy to share that our volumes compared to last year quarter was 9% growth in terms of overall volumes for core lubricants. And that shows that we've been gaining market share.
Another good thing that has happened is we are seeing that the personal mobility segment has taken off very well in terms of the quarter 4 for us across the motorcycle and PCMO. Motorcycle was a bit of a worry, as you may recall in the previous quarters, but we have bounced back. There has been a lot of work happening in terms of the business and the brand. We have seen our distribution touch points, again, going crossing 15% growth to across 80,000 outlets. There has been excellent of our bike stops, which have now gone and car stops which have gone the 9,000.
Coming back to the business, we are seeing that all the segments in quarter 4 continued to gain market share. And certainly, we have also done a lot on the brand. In quarter 4, we have invested, in fact, a significant enhanced funds into our brand promotions, both above the line, below the line. With the coming IPL season and our brand assets, our brand ambassadors, Mahendra Singh Dhoni, Hardik Pandya, Smriti Mandhana and Chennai Super Kings, we have invested more in quarter 4 to plan for the promotions, which we have used our concept called Gulf Fan Academy. I'm very happy to share that this promotion through gaming, gamification, we have taken it to consumers, retailers, mechanics and launched a massive consumer promotion, which has actually garnered over 3 billion impressions across Jio Cinema where we had our gamification and sorry -- My Jio and Jio Cinema, where we ran our adverts. So this is a good input that has gone besides the other below the line.
We have also seen stable cost of raw materials in this quarter. And if you look at quarter-on-quarter, though our margins are reported at the similar level, having invested nearly more than 1% more in the advertising. There has been some increase in the margin overall and with the mix also in terms of the last quarter of the year. And we are happy to share that we are now gaining market share much ahead because of our performance ahead of industry.
Coming to the annual performance, our volume growth is 15%, and the industry has grown 3% to 4%. So again, we have grown more than 3x the industry and gained market share, as I mentioned, in the opening lines. We are definitely promoting products which are going to add value, like we have launched a tractor oil, which is a 1,000 hours drain interval. We have added to our EV fluids where we have about 2 more OEMs who are doing EV products, Omega Seiki, the name 1 and under the mobility company. So we now have 7 companies we are tied up for EV fluids. We are also working on other areas, as we mentioned in the mobility area.
So all in all, a very good quarter, very satisfying to see that we have been able to do all this. It shows that we have been doing the team here and all -- with all -- everybody support a strong performance, and we have had an industry-leading growth 20% growth in EBITDA. Manish will cover some of the other financials, which are also good news to report. And we continue to grow across -- continue to invest in our brand. And certainly, we would like to share more details.
So I'll now hand over to Manish to take us through some of the other details. Thank you so much.
Thanks, Ravi. Good afternoon, everyone. So as Ravi mentioned, the quarter has been a very robust quarter once again. And overall, on the financial side, you have seen now that the finance cost has improved over December quarter or even earlier quarters because this quarter, the rupee was stable, and we had no ForEx losses. So that has been a help in the PBT level at the PAT level. Of course, rupee and base oil has been stable.
So you'll see that there is an improvement in the gross margin level from December quarter sequentially. Of course, some of the key -- other key inputs like additives, et cetera, is still continue to remain very, very high in terms of cost so that continues to weigh on some of the cost worked -- cost side. Overall, on the full year basis, as Ravi mentioned, INR 3,000 crores of top line, nearly and of course INR 343 crores of EBITDA, which is 20% growth, INR 232 crores of profit after tax, which is 10% growth. And at EPS level, you see the improvement by 13% because we have done a buyback last year during the financial year, so nearly 3% equity was bought back.
At the cash flow side, we have -- you will notice from the cash flow statement that we have generated INR 273 crores for the year from our cash from operations. And that's a healthy sign on the end clearly shows the robustness of the business. We are -- and working capital was in control. We have been able to improve on our working capital days. And based on the healthy cash flow generated and the cash we carry nearly INR 650 crores on the balance sheet, the Board has been very happy to recommend a INR 25 dividend per share, which is 1,250% on the face value of INR 2, subject to, of course, the approval of shareholders in the AGM, but that has been -- if you translate that to the payout, it nearly translates to roughly 53% payout for the -- from the profit for the year.
So with that, we would -- so with that, we will hand over the stage to Q&A, and over to you, Nitin.
[Operator Instructions] Our first question comes from Keshav Garg with Counter Cyclical PMS.
Sir, I wanted to understand that in the previous call, you mentioned that we had plans to venture into the battery segment. And sir, that is a big apprehension for the shareholders that initially there might be big losses. So any clarity on that, that how much does the company intend to invest in the battery 4A and what type of losses are expected from the same?
Yes. So Mr. Keshav, we are already into the lead-acid VRLA batteries since a number of years in the 2-wheeler segment. I think we are referring to that. So we are not entering into any other battery segment related to EV. This is a segment that we have been catering to for the last 7, 8 years because we have a brand called Gulf Pride, our motorcycle oil. We extended that to make 2-wheeler batteries, which we are now in the top 4 position. So this is about INR 83 crores revenue this year -- sorry, INR 87 crores revenue this year. And we have been successful by distributing this product across 12,000 outlets we have a dealer network. This is basically a VRLA 2-wheeler battery for the current motorcycles. And so this is our current business, which we are referring to.
Okay. So that's reassuring to know. And sir, is this segment already profitable?
Yes. So we are -- Manish, you want to add here.
Yes. So we have been EBITDA neutral as of now as the volumes tick up, and we are putting some efforts on how to localize the production of these batteries because currently, it was an import model. So with that also, we believe that the profitability will further improve.
So sir basically, we are trading in battery, we are not manufacturing, neither do we have any plans to manufacture the same item?
We're localizing. We are doing a toll manufacturing. So we are localizing it. We are getting a very good quality battery from overseas from Asian countries. But we did have -- we did make profits earlier, but now we are breaking even. There has been an increase in the cost of imports. So now the localization efforts are on. We will localize it and then this business should be able to give us about 10% margin.
And also, we have been investing in this business because we have created a pan-India distribution. We have more than 200 distributors. We have 12,000 retailers across India who are currently selling batteries, 2-wheeler batteries for Gulf brands, so that investments have gone in, in the...
And these outlets could serve in the future to look at how we can also further look at opportunities that are developing in the battery area.
Sir, also, sir, we have, sir, around INR 1,800 crores is our enterprise value if we take out the cash from the balance sheet net cash. Sir, and on top of that, we are making EBITDA of around INR 350 crores and operating cash flow around INR 270 crores, so the point I'm trying to make is that the share is undervalued sir. So why aren't we doing a share buyback, which is more tax efficient also.
You see, we have done a share buyback last year already to the tune of INR 85 crores. This year, we have declared a very hefty dividend, I would say INR 25 and 53% payout already. We are also looking at the evolving EV space and how well can participate in this EV space. And we are looking at a lot of investments going into that to be future ready as well. So it's a mix of investment in our current business by doing some CapEx in the current plant to the extent of INR 20 crores, INR 25 crores, INR 30 crores annually, considering our growth in the current business. At the same time, we are looking at the EV space, and we have increased the payouts also during the last 2 years.
[Operator Instructions] Our next question comes from Sabri Hazarika with Emkay Global.
Sir, just 1 question. So we are moving into this 50% payout zone, right, in terms of dividend?
You see, we have not as such declared the policy, but you see last -- earlier, we used to have around 35%, 40% payout. Last year, we have -- with the buyback, we have gone with the payout of roughly 62%. This year, it is already more than 50% around 53%. So the trajectory is towards returning cash to shareholders, wherever there is an opportunity considering our growth plans and the investment in the sectors which we just discussed.
Okay. So irrespective of the CapEx plans, I think you would be comfortable enough to maintain a good dividend payout ratio, the payout, that's right?
Yes. Yes. Yes. Because it is a high cash-generating business as we have seen over the years. And the current business is also very robust and growing. So we do not see any reason why the company should not be in a position to maintain or increase the payout.
Right, sir. So just 1 bookkeeping question. So for the full year FY '23, what would be the rough cut realization of AdBlue and rough cut EBITDA per liter of AdBlue, if you could give that?
No, we do not share the separate details. Of course, we have been sharing the volume, but it will be difficult to share the breakup.
Okay, sir. No problem.
Our next question comes from Aditi with Arihant Capital.
First of all, congratulations for a great quarter. My question is, first of all, if you can just help with 4Q volumes for core lubes and AdBlue. And secondly, you mentioned tie-ups with certain OEMs. If you can throw some light on the major OEMs we are collaborating with.
Thank you so much. So lube volumes at for quarter 4 are 36,000 KL, AdBlue is around 28,000. So that's a total of 64,000. In terms of OEMs, what we'd like to explain to you is we have an extensive tie-up with OEMs, which has been part of our strategy across the automotive industrial sectors. And we have -- we have more than 30 OEMs. So we supply lubricants in different parts of their business, both at factory fill and the workshop.
So just to name a few, obviously, we have Bajaj, Ashok Leyland, Mahindra, SCHWING Stetter. So we have a number of OEMs we supply. And we also have recently spoken about EV fluids. So we have started supplying to close to about 7 OEMs now we have Switch Mobility, Piaggio. So we have recently added Omega Seiki. We have got Altigreen, which is making 3-wheelers and a few other OEMs who we have started supplying EV fluids. We have about 7 of them, and we are looking at more prospects there. But EV fluids is going to be a low volume at the current.
Our main focus is in the core lubricants, which is growing quite well. It is growing -- the industry is growing at least 2% to 3%, and we have been growing at least 2x to 3x the industry. So all the automotive OEMs also do have a very good effect because once we have with them, the product technology, the adoption of the product, even after warranty, helps us in the bazaar market. So it's a concerted strategy which all companies are using. But I think from the Gulf point of view, I'm very proud to have a lot of leading OEMs. And we are also exporting some of the products to over 25 countries from India.
Our next question comes from Aman Vishwakarma with RoboCapital.
Yes. Congrats on the good numbers. So my question would be, what is your revenue and margin outlook for FY '24?
So you see, as Ravi just now mentioned, the industry is growing at 3% to 4%, let's say, and we have been growing in terms of volume. And in terms of revenue, usually, it is a percentage higher. This year has been an exception where a lot of price increases happened. And you see, while we have grown our core lubricant volumes by 15% with the -- and the revenue has gone up by nearly 37% for the year.
So as a future, we always say that we will grow 3x to 4x, 2x to 3x, 3x to 4x the industry growth which we have been able to deliver over the last 10, 12 years. And our CAGR volume growth also is double digit. So we continue to aim that. Of course, as a margin we highlighted in our opening remarks that base oil and rupee has been stable.
And of course, there have been some softening in the base oil during Q4, which is reflected in improvement in the gross margin. But as a percentage, the -- for EBITDA and gross margin looks lower because you pass on the price increase or cost increases in terms of per liter. And then the ratio becomes slightly skewed to us lower -- looks lower. But while per liter, we have been able to recover the input cost increases. So as a trajectory, we aim to have 12% to 14% move towards 12% to 14% EBITDA and double-digit volume growth in the coming years.
Okay, fair. And my next question would be on the AdBlue business. So how do you see that AdBlue business shaping up in the next 3 to 4 years in revenue terms?
So AdBlue is -- I would say, it's complementary to the diesel engine oils and, of course, in the BS VI vehicles and some BS IV. So we are definitely well placed because we have our presence there in that segment, and we have distribution. We've also geared up our manufacturing and supply over there. So the market is not a very -- the margin is quite narrow. It's not what the lubes gives us. So we are focusing on basically getting a quality product and having growth where we are present, along with OEMs and distribution touch points.
The consumption of that -- of AdBlue is going to be significantly growing because it is required for all BS VI vehicles for sure and it will be about 3% to 4% of the diesel. And we expect the market to grow well and be part of the growth because we are well placed, we believe, in the top players today. And we will definitely have a double-digit growth in that and grow this business. It's -- we obviously want to focus on our core lubricants, but this has a complementary product is required. It also helps the environment because the use of AdBlue reduces the NOx sort of environment-friendly product. And we continue to strengthen our supply chain and also look at how we can give the best quality product.
Okay. So you're expecting to maintain this volume trajectory in AdBlue, right?
Yes, it will go up. It will go as the market consumption is going up, but it is also -- we must understand that this is a very price-sensitive product also.
And 1 last question would be, what is your market share in AdBlue, lubricant and EV fluids, like if you could give me a broad number?
The EV is too nascent at this stage. So too nascent. And we are at about 6% to 7% in the bazaar market. In some segments, we have close to double-digit share, 8% to 9% in motorcycle and [ GO ] and we are among the top 3 players in AdBlue today. So we have, again, more than a double-digit share in that. And we definitely have a lot of scope to grow in the passenger car segment in the Industrial segment, which is an opportunity for us. And, of course, increase our distribution touch points in every segment we are present. So this is roughly the breakup. There is no industry organized data. So some of these figures I'm giving you is based on internal estimates.
Our next question is from Hamel with -- an Investor.
Just some bookkeeping questions. This time the other expenses quarter-on-quarter very high. What was the reason for that?
So there are 2 reasons. Basically, 1 is, as Ravi highlighted, we have increased our A&P spends during the quarter on the back of this IPL campaign, which is happening ongoing. And the second reason is that the volumes have gone up significantly if you see over the quarter-on-quarter, this is 71%, including AdBlue. So the freight component and goes up with every -- whether it is an AdBlue or a lubricant sale, the freight component goes up. So basically 2 reasons.
So if you would take the volume growth and then the sort of realization price decline because you might have got, as you rightly said in the comment earlier that the cost is passed on to the consumers, cost benefit. How much price decline has already seen quarter-on-quarter like 5%, 8%, 10%?
See, it is very difficult to predict because it is segment to segment. There have been some inputs, which have gone -- to increase. Yes, we can really say that there was at least 3% to 4% pass-ons which have happened. But it is, again, depending on segment-to-segment basis.
Our OEM business is formula-driven. So whenever the base oil goes down, we have to pass on the cost benefit to them. And in the retail segment, there have been some increase in the schemes and other inputs to the market.
So you don't see because of competition pressure that you have to pass on the prices very fast. I mean you [indiscernible] because you've been worried from other players also that the prices are being passed on so...
Hamel, as an industry when the prices come down, you have to pass on. So it is following the industry norm and every brand has a positioning in the market. So based on that, there is either increase or decrease if the cost go up or come down. So it is done across industry with the players. .
So we should continue -- we should see this upcoming this quarter and the next quarter, the sale thrashes, oil prices stay where they are, right, because they're better off than what they were last quarter also. Prices have come down. So this -- this journey will continue this quarter and next quarter?
While it is depending on many factors, 1 of course is the rupee and another is the other input costs in addition to crude and base oil, which directly impact. As I mentioned earlier, additives and many other costs still remain at a very elevated level. So we do not see any major price drops in the market happening for sure, but there may be always a recalibration happening on certain schemes and inputs to the market.
Absolutely, final question. For the whole year, the ForEx loss was how much, if you could quantify it, I would appreciate it.
Yes. For the full year, the ForEx loss is around INR 20 crores versus last year, year before, it was INR 4 crores.
[Operator Instructions] Our next question comes from Chirag Fialoke with RatnaTraya Capital.
Just a clarification question for the quarter, what was the battery sales?
Battery, you are asking of our battery sales?
Yes.
Yes, INR 25 crores. For the quarter, the revenue is INR 25 crores.
Understood. And is it possible for you to guide us on what the A&P spend was for the quarter and the year that is gone by?
We always talk about percentages. And as Ravi mentioned, it was nearly a percentage higher than December quarter. So close to 4%.
For the quarter that gone went by it was 4%?
Yes.
Our next question comes from Amit Mehendale with RoboCapital.
Great set of numbers. I have a couple of questions. First, on the lubricant business, we are growing twice or thrice the industry sale. So what are the key growth drivers there? I mean, what is helping us to gain market share there?
Yes. So mainly we've been explain that right through. I think for us, the strategy of going to a segment-wise approach, investing in our brand and our brand has grown. In addition to that, obviously, OEMs and leveraging our technology. And I think in each segment, there is a different play we have, for example, the channel segment is about distribution. But I would say brand, technology, segment-wise approach, where we can win and definitely looking at the technology part where we have [ along the ] lubricants. And if you take even the -- in each of the segments, we have outlined B2C, which is the channel business, we have got a B2B industrial, we've got infrastructure then again, the OEM.
So it's the segment-wise strategy and where we are able to -- where we have created a strong business model. And of course, our brand is in the top 3 brand, we believe now on the metrics that we have internally tracked amongst the industry. So these are the strengths with which we continue to build our business.
And I have another question on AdBlue business. So there, I think our volumes have been growing fairly well. So do we really -- I mean do we expect this 20% type of a growth for next 2, 3 years? And what is the like long-term view in this business? Like if you take slightly longer view how long can the...
So AdBlue has just started. It's being used in the BS VI products. It is used where the diesel engines, the emissions that come out, it treats it and it reduces the NOx. So it is a consumable item. So wherever you are going to use diesel in the vehicles, you're going to have AdBlue used. So if you're using 100 liters of diesel, roughly about 3 liters, 4 liters of AdBlue will be used. So it's a consumable. So the growth is going to continue because all vehicles, which are BS VI, which has started a few years back, we'll have to use this as compulsory. So it is a growth trajectory. It will certainly grow 25% every year.
Right. And so here, the sales push or I mean, is it a consumer demand? Or is there a channel push? How was the -- and...
Mix of everything. Yes, it's a mix of everything, there's distribution, you have to tie up with OEMs, you have to distribute it in all parts of the consumption to put it in outlets, which are convenient for people to use and buy it. So it's a distribution cum it is, I would say, for us, we are positing it as also quality because it's important to give the right quality. So different players will do it differently, but it's all about the right product and also the distribution and the channels which can reach the consumers.
Great. I mean my question here -- I mean, thanks for the clarification. My question here it was that suppose there is a consumer that has bought BS VI vehicles. Is the consumer aware that he needs to mix AdBlue or when it goes to your petrol pump, someone is advising him at that stage?
No, no, no. It's compulsory. You have to use it. It is not being mixed with the fuel. There is a separate chamber in the vehicle which has to be filled with AdBlue. So there is no choice for him not to fill that. It has nothing to do with fuel. When the emission is made, it comes out and it is a separate tank which emits this spray this and controls the emission level.
Our next question is from Aditi with Arihant Capital.
Sir, you mentioned about the working capital days -- improvement in the working capital days. So can you throw some light on where we are in terms of the working capital days?
Yes, our net working capital is around 56, 60 days. Gross working capital is around 100 days.
Okay, sir. And sir, another question is you -- in some of the previous calls, you mentioned how we are investing in the EV value chain. So are there any other kind of investments in maybe adjacencies that we are looking at?
Yes. So currently, we have shared quite regularly that we have invested with our parent company, Gulf Oil International and a company called Indra, which makes car chargers out of U.K. So we have tested some of those in India. Here we are working on how we can take that aspect here in the Indian market. We have invested in our Software-as-a-Service company on EV called ElectreeFi which is now providing a lot of the software, which is involved in the charging space in the battery charging and the other charging area. And we are also looking at some more investments, which we will get back to you once we are internally clear about it, and the Board has approved. So definitely watch this space. we are looking at what...
[Operator Instructions] Our next question comes from Nitin Tiwari with YES SECURITIES India Limited.
Actually, I had a question around AdBlue sales. So while our AdBlue sales are rising, so I just wanted to understand that given that this is a low-margin product, would there be a point where like because the contribution from this product will be very, very limited, the logistics cost of handling that sales would become prohibitive for you to basically raise the sales any further beyond what, I hope you get the drift, right? Because like my sense is that in this quarter also, our EBITDA per unit actually would have been better if the AdBlue sales were actually like in-line with what the previous quarter sales were and lubricant sales would have been higher. So would that inflection point come where like the logistics cost and distribution cost will become pervasive for you to sell any more AdBlue.
So I think, Nitin, the way we look at it is that it is an incremental business to us. The same -- there is a lot of synergy in terms of distribution. The same end consumer and customers are using, who are using our lubes. So there is a lot of synergy in terms of distribution. And based on that, it is a -- while we do not make percentage or per liter margin same as lubricant. But whatever is the margin, it is just a positive EBITDA contribution business and adding to the overall kitty. So that's the way we are looking at it. It's a great opportunity in terms of volume.
also. So -- and as Ravi mentioned, the 25% volume growth is going to continue for the next 2, 3 years at least. So we are looking it a more as a addition to the kitty than in terms of percentage or other metrics.
And then -- and we are selling it with margin. As we mentioned to you, the margin is single digit. It's not that there is no margin. Obviously, why -- we would not want to sell it if it is not making any...
And the margin is, of course, after the freight cost and all which you are talking about.
Our next question is from Nirav Savai with Abakkus AMC.
My question is, sir, regarding the B2B contribution this quarter, the industrial part of it. So what exactly was, the shares or in the volumes?
Industrial volume for the quarter has been -- actually, the ratio has been more or less similar as earlier quarters where our industrial business was roughly 14% in the December quarter, it is now around 12%, 13% in this quarter as personal mobility has gone up by a percentage. So other mix remains more or less similar.
Okay. So about 14% to 15% is contribution on the industrial side. And how do we see that growing in the next 2 to 3 years?
Yes. In terms of Industrial business, actually, we are -- there is a lot of focus and we will talk about it.
So we have different segments, as I mentioned earlier, on the segment-wise strategy. So our industrial B2B business is catering to industries, medium industries, some directly to industries we sell larger plants and also we sell to our distributors industrial. So this business is what Manish is referring to as 14%. That is growing very well. We have got a good brand, good technology. We have got, of course, a very good sales team and distributor set. So we are growing very well in this segment.
As you know, the last 2, 3 years for India in terms of the manufacturing impetus has been really very good, sort of exports also happening. So right across steel, cement, textile, plastics, these are the industries which we are there and obviously, a few more. There has been an excellent response to us. We are doing very well. There are other competitors who have a larger share, but we are working our way. We have a very low market share there, I would say, 3% to 4%. And again, we see a good scope of increasing at least 0.5%, 1% market share here going forward with our strategies. We also have 1 more segment we cater to, which is in this -- is the infrastructure segment, where we have a dedicated segment-wise approach. And that itself is about 7%, 8% of our volume.
So combined both, as you know, infrastructure also is growing very well in India. So all these tunnel boring machines, equipments that are moving materials around road construction. These are all segments where we have a very good list of customers, and we have developed. So this also, as you know, the investments in this is multiplied by the government. So this is again a double-digit plus business for us. So both these businesses [indiscernible] well for our growth in this -- both these segments.
Right, right. So any number which you can provide in terms of our market share in the infra segment?
Yes. So both these segments, we choose our markets to play with, we also have a presence in some ports and mining. So we would say that industrial business is about 3% to 4% and the infrastructure business also would be similar in terms of the segments we are in.
There also, we feel there is a resilience room for improvement in market share?
Yes, yes.
Our next question is from Hamel with -- an investor.
Sorry, sir, just 1 question. What is the net cash position you said? I didn't hear it. So.
So as of 31st March -- you are talking of net cash?
Yes.
As of 31st March, we have a gross cash of around INR 650 crores and net cash of around INR 325 crores.
That's it, sir.
Our next question is from Nisha Mulchandani, an investor.
Congratulations on the great set of results as always. You have make the [indiscernible] too serious. Some of the bookkeeping question, sir. So we see there is an investment increase of approximately INR 30 crores to INR 35 crores during the year with this. And like in other assets as well, which nearly ranges around the same quantum. So what are these [ investments ] and help us with certain details?
Sorry, can you come back with your question again?
So there are increase in investments, which we can see in the balance sheet and in corresponding [indiscernible] other assets as well approximately of INR 30 crores, INR 35 crores in months. So can you help us with some details around those.
So on the investment, you see, we have invested in a company called Indra Technologies in U.K., which is an EV charger manufacturing company. That was the investment which was done sometimes say in year '21, '22 and also partly in '22, '23, beginning first half. They had a second round of fundraise -- a next round of fundraise. And their valuation went up. And accordingly, we had declared in our December quarter results, around INR 35 crore increase in the other comprehensive income. So that is the reflection in the investment, which is of around INR 35 crores in investment.
Okay. Okay. And sir, around the volume mix, I believe you mentioned that the goal which has been 36 million liters. So can you help us with a phase-wise breakup around that, like motorcycles, you mentioned have seen a growth in logistics have seen a growth. So -- so how are the other segments range?
No, we would not like to share this because of competitive reasons also.
Okay. And because of the -- just the last question then, because of the better economic conditions that we see in the overall country, has there been any improvement in the exports or they remain at the same as last level?
You are talking of export?
Yes.
Yes, we have increased our exports in the year as well. So exports have also grown double-digit on our Gulf products as well as some of the OEM tie-ups we have for exports, where we are exporting the genuine oil in more than 20 countries for them as well. So both have increased.
Our next question is from Harsh Maru with Emkay Global.
So my first question is regarding -- like if you can put through some color on our strategy to move towards higher margin or premium products. So any efforts that you all are doing around that, if you can throw some light?
Yes, Mr. Maru, we are definitely looking at how we can increase, that's part of every -- I think every company's endeavor. And definitely, if you see synthetic, semi-synthetic products are the PCMO segment. So this is across all our segments we look at how we can get into the higher-margin products. So this is a continuous endeavor, and that's how we want to -- we obviously have a very balanced business with both the channel business and the OEM business. And certainly, we want to look at a good share in the synthetic segment and try to take that up substantially in the coming years.
Sure. And regarding now that the base oil costs are coming down, so how do we see our pricing strategy going forward in the next about 2 to 3 quarters?
I think we mentioned it that we have a certain positioning in the market. We'll maintain that right across segments. And whatever is required in the market, there is obviously a market will give different pricing levels, and we will continue to maintain our strengths. And we have indicated that we want to take the margin to a 12% to 14% band going forward overall for the company because we have different segments, there's OEMs, there's channel. So you have to obviously look at various pricing levels across segments.
For a strategy to gain market share and maintaining a decent margin continues.
Our next question is from Nemish Shah with Emkay Investment Managers Limited.
Congratulations on a good set of numbers. So I just wanted some clarification. So you mentioned double-digit volume growth and 12% to 14% EBITDA margin, how that would look to target over the coming few years? So this double-digit volume growth, does it include AdBlue sale or it's core lubricants?
Core lubes.
Okay. And the 12% to 14% EBITDA margin is including both or it's also...
Yes, 125 to 14% is for the company.
Okay. Okay. Understood. Yes, that's it for my side.
Our next question is from Aman Vishwakarma with RoboCapital.
So I have a question on the EV Lube business, right? So I think in the last quarter, you guided, we'll be looking at 100,000 kiloliters -- sorry, a 100 kiloliters of EV fluids -- so have been you like -- have you been able to achieve that?
That was for the year.
Yes, yes, for the year.
Yes, yes. So we are on track now. It will get used during the year if it doesn't get used -- it will use every -- as a [indiscernible] buy throughout the year. So that is still the target.
Okay. So what were volumes for Q4 in EV fluids?
It has just started. So we are looking at more -- the 100 kilo more kind of annual perspective based on what it is going to happen. It's a new very nascent area.
This is fine. So what I'm trying to understand here is what -- so how do you see this 100 kiloliters growing like going forward? .
See, as you know, the penetration of EV vehicles is happening. So we will have to calibrate and see how it's going. We have got about 7 OEMs, 4 or 5 of them are directly making vehicles. The others are component makers. So we will have to track the segment to Mr. Vishwakarma. It's not easy to predict.
And as of now, there is no demand, which has come through retail level. Yes, this is mostly OEM setup.
This is mainly factory fill when the vehicle is dealing.
Okay. Fair. And so -- so here, the oil change time is it different than what you would have in a normalized engine? Or how does that work?
So there is no engine oil. So these are all other fluids, transmission fluids, brakes fluids and all. So it is filled in -- it is replaced. But at the moment, the demand is very, very low.
Okay, sir. And could you guide me as to what sort of blended realization you're seeing going forward?
So they are good. That good comparable to loop slightly more.
No, no. Like what I'm asking is like blended realization. So how do you see that shaping up in the future? Do you expect it to decrease because of AdBlue sales going up? Or do you expect it to stay constant?
I didn't get your question. When you said blended.
Branded realization per liter,like..
Sorry, you see, if you -- as we have mentioned, AdBlue sale is going to grow at least 20%, 25%. And the lube sales will be -- in terms of volume will be double-digit, but it will not be certainly high double-digit or 20%, 25%. So on the blended level, the realization will look different. But in terms of absolute separate realizations, both we are targeting that, obviously, lubes, Ravi mentioned about increasing how we can increase our mix and move towards a even higher category products, synthetic products and all. And AdBlue is the commodity, so the pricing will depend really on the market. So it's a very different from pricing and other perspective, it's a very different category, whereas on blended level, of course, the realization will look slightly different.
Ladies and gentlemen, in the interest of time, that was the last question for the day. I would now like to hand the conference over to the management for closing comments.
Thank you. I think overall, we've got a number of questions. I hope, we have been able to answer all of you. I would, first of all, like to thank all of you for your good wishes and support. We have definitely seen the year-end on a good positive note for Gulf -- Gulf Oil in India. And definitely, we're looking forward, as Manish mentioned, to balance the margin delivery and the increase in market share. We continue to strengthen our brand, our distribution, which is key B2C markets, we definitely see that we would like to increase our distribution, our brand strength is there and continue innovating and competing well in the market.
And definitely, there are a number of global initiatives that we are looking at right across in mobility, in many other areas on technology, in terms of the brand, and there are lots of platforms we have created globally, with Williams and Formula 1 racing. In India, we have developed a lot of strength with cricket. So I would say all these assets come to play as we grow our brand even more, strengthen our distribution.
And as one of you mentioned, definitely focus on better margin enhancement through better products. And we are looking at definitely profitable growth going forward. And so look forward to all of that and working closely with a lot of our global team, we want to look at how we can grow this business even further. And thank you so much for all your support and hope to catch up with all of you soon. Thank you.
Thank you. On behalf of YES SECURITIES India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.