Gulf Oil Lubricants India Limited (GULFOILLUB) Q4 FY23 Earnings Concall Transcript

Gulf Oil Lubricants India Limited (NSE:GULFOILLUB) Q4 FY23 Earnings Concall dated May. 19, 2023.

Corporate Participants:

Manish Gangwal — Chief Financial Officer

Unidentified Speaker —

Ravi Chawla — Managing Director And Chief Executive Officer

Analysts:

Nitin Tiwari — YES Securities — Analyst

Keshav Garg — Counter Cyclical PMS — Analyst

Sabri Hazarika — Emkay Global — Analyst

Aditi — Aryan Capital. — Analyst

Aman Vishwakarma — Robo Capital — Analyst

Hemal — — Analyst

Analyst — — Analyst

Chirag Fialoke — RatnaTraya Capital — Analyst

Amit Mehendale — RoboCapital — Analyst

Nirav Savai — Abakkus AMC — Analyst

Nisha Mulchandani — — Analyst

Harsh Maru — Emkay Global — Analyst

Nimesh Shah — — Analyst

Presentation:

Operator

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.

Nitin Tiwari — YES Securities — Analyst

Thanks, Ryan. Good day, ladies and gentlemen. On behalf of YES Securities, I welcome everyone to Gulf Oil Lubricants India Limited Fourth Quarter FY ’23 Earnings Call. We have the pleasure of having with us today the 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.

Manish Gangwal — Chief Financial Officer

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 four, 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, 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 four for us across the motorcycle in 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 cross 80,000 outlets, that has been excellent addition of our bike stops, which have now gone and car stops, which have gone to 9,000.

Coming back to the business, we are seeing that all the segments in quarter four continued to gain market-share and certainly, we have also done a lot on the brand. In quarter four, 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 or brand ambassadors Mahindra Singh Dhoni, Hardik Pandya, Smriti Mandhana, and Chennai Super Kings, we have invested more in quarter four to plan for the promotions which we have used our concept called Gulf Fan Academy, and very happy to share that this promotion through gaming, gamification, we’ve taken it to consumers, retailers, mechanics and launched a massive consumer promotion, which is 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 AdWords, 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 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% again, we have grown more than three times 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 has a 1,000 hours drain interval, we have added to our EV fluids, where we have got two more OEMs who are doing EV products, Omega Seiki to name one, and under the mobility company, so we now have seven companies we were 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’ve been doing the team here and with all — everybody’s 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 — 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 help in the PBT level at the PAT level. Of course, rupee and base oil has been stable. So you will 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 etcetera is still continue to remain very, very high in terms of cost, so that continues to weigh on some of the cost — cost side. Overall, on the full-year basis, as Ravi mentioned, we have INR3,000 crore of topline nearly and of course, INR343 crores of EBITDA, which is 20% growth, INR232 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. And the cash-flow side, we have — you will notice from the cash-flow statement that we have generated INR273 crore for the year for our cash from operations. And that’s a healthy sign and clearly shows the robustness of the business, where working capital was in control, we have been able to improve on our working capital deal. And based on the healthy cash-flow generated and the cash we carry nearly INR650 crores on the balance sheet, the board has been very happy to recommend a INR25 rupees dividend per share, which is 1250% on the face value of INR2, 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 will hand over the stage to Q&A. And over to you, Nitin.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator instructions] Our first question comes from Keshav Garg with Counter Cyclical PMS. Please go-ahead.

Keshav Garg — Counter Cyclical PMS — Analyst

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 battery foray and what sort of losses are expected from the same?

Unidentified Speaker —

So, Mr. Keshav, we are already into the lead-acid VRLA batteries since a number of years in the two-wheeler segment. I think you’re referring to that. So we’re not entering into any other battery segment related to EV. This is a segment that we have been catering to for last 7-8 years, because we have a brand called Gulf Pride, our motorcycle oil. We extended that to make two-wheeler batteries, which we are now in the top four position. So this is about a INR83 crores revenue this year — sorry, INR87 crore 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 two wheeler battery for the current motorcycles and so this is our current business which we are referring to.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay, sir. That is reassuring to know. and is this segment already profitable?

Unidentified Speaker —

Yeah, so we are — yes, Manish, if you want to answer that?

Manish Gangwal — Chief Financial Officer

Yes, so we have been EBITDA neutral as of now. As the volumes picked-up and putting some effort on how to localize the production of these batteries, because currently, it was a import model. So with that also, we believe that the profitability will further improve.

Keshav Garg — Counter Cyclical PMS — Analyst

Basically, we are trading in batteries, we are not manufacturing, neither do we have any plans to manufacture the same?

Unidentified Speaker —

We are 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.

Unidentified Speaker —

And also we have been investing in the business because we have created a pan-India distribution, we have more than 200 distributors, we have 12,000 retailers across India who currently selling batteries, two-wheeler batteries for Gulf brand. That investment has gone in the —

Unidentified Speaker —

And these outlets could serve in the future to look at how we can also further look at opportunities that are developing, the battery.

Keshav Garg — Counter Cyclical PMS — Analyst

Thank you. Sir, also sir, we have sir around INR1,800 crore 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 INR350 crore, and operating cash-flow of around INR270 crores. So the point I’m trying to make is that the share is so undervalued, so why aren’t we doing a share buyback, which is more tax-efficient also?

Unidentified Speaker —

Actually, we have done a share buy-back last year already to the tune of INR85 crore. This year we have declared a very hefty dividend, I would say INR25 rupees and 53% payout already. We are also looking at the evolving EV space and how Gulf 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 INR20 crore INR25 crore, INR30 crore rupees 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 last two years.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay sir, thank you very much and best of luck.

Nitin Tiwari — YES Securities — Analyst

Thank you. We’ll have the next question please.

Operator

[Operator Instructions] Our next question comes from Sabri Hazarika with Emkay Global. Please go-ahead.

Sabri Hazarika — Emkay Global — Analyst

Yes sir, just one question, sir. So we are moving into the 50% payout zone right in terms of dividend?

Manish Gangwal — Chief Financial Officer

See, we have not so declared the policy, but you see last — earlier, we used to have around 35%, 40% percent payout, last year, we have with the buyback we have gone with a 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.

Sabri Hazarika — Emkay Global — Analyst

So, irrespective of the capex plans, I think you’d be comfortable enough to maintain a good dividend payout ratio — payout, right?

Manish Gangwal — Chief Financial Officer

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 payouts.

Sabri Hazarika — Emkay Global — Analyst

All right. So just one, one 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 [Indecipherable], if you could give that?

Manish Gangwal — Chief Financial Officer

We do not share the separate details, of course, we have been sharing the volume, but it will be difficult to share the breakup.

Sabri Hazarika — Emkay Global — Analyst

Okay, no problem. Thank you so much and all the best

Operator

Thank you. Our next question comes from Aditi with Aryan Capital. Please go-ahead.

Aditi — Aryan Capital. — Analyst

Hello sir first of all, congratulations for a great quarter. My question is first of all, if you can just help with 4Q volumes for Lube 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?

Ravi Chawla — Managing Director And Chief Executive Officer

Thank you. Thank you so much. So lube volumes for quarter-four are 36,000 KL at 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 extensive tie-ups with OEMs, which has been part of our strategy across the automotive industrial sectors and we have more than 30 OEMs who 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 close to about seven OEMs now we have Switch mobility, Piaggio. So, we have recently added Omega Seiki, we have got Altigreen, which is making three-wheelers and a few other OEMs, who we have started supplying EV fluids. We have about seven 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 two to three times the industry.

So all the automotive OEMs also too it would affect 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, very proud to have lot of leading OEMs and we are also exporting some of their product to over 25 countries from India.

Aditi — Aryan Capital. — Analyst

Okay, thanks for sharing the insight, sir.

Unidentified Speaker —

Thank you.

Operator

Thank you. Our next question comes from Aman Vishwakarma with Robo Capital, please go-ahead.

Aman Vishwakarma — Robo Capital — Analyst

Yes, congrats on the good numbers. And thank you for taking my question. So my question would be, what is your revenue and margin outlook for FY’24?

Manish Gangwal — Chief Financial Officer

So you’ll see, as Ravi just now mentioned, the industry is growing at 2% 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 increase has 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 go three to four, two to three years, three to four times 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 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 towards lower — looks lower but while per litre, we have been able to recover 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 year.

Aman Vishwakarma — Robo Capital — Analyst

Okay, fair. And my next question would be on the AdBlue business, so how do you see that our new business shaping up in next three to four years in revenue terms?

Manish Gangwal — Chief Financial Officer

So you know AdBlue is a, I would say it’s complementary to the diesel engine oils, and of course in the BS6 vehicles and some PS4. So yes, we are definitely well-placed because we have our presence there in that segment and we have distribution, we have also geared up our manufacturing and supply over there. So the market is not a very — it’s — 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 BS6 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 a — we obviously want to focus on our core lubricants. But this as a complementary product is required. it also helps the environment because the use of AdBlue reduces the NOx, so it’s a environment-friendly product and we continue to strengthen our supply-chain and also look at how we can give the best quality product to the market.

Aman Vishwakarma — Robo Capital — Analyst

What was that you expecting to maintain this volume trajectory in AdBlue, right?

Manish Gangwal — Chief Financial Officer

Yes, yes, it will go up, it will go up because the market consumption is going up, but it is also — we must understand that this is a very price-sensitive product also.

Aman Vishwakarma — Robo Capital — Analyst

And one last question would be, what is your market-share in AdBlue, lubricant and EV fluids, like if you could give me a broad number?

Manish Gangwal — Chief Financial Officer

See EV is too nascent at this stage, so too nascent. And we are 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 DEU, and we are amongst the top three players in AdBlue today. So we have again more than a double-digit share in that and we definitely have 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.

Aman Vishwakarma — Robo Capital — Analyst

Yes, that’s all from my end. Thank you.

Manish Gangwal — Chief Financial Officer

Thank you.

Operator

Thank you. Our next question is from Hemal, an investor. Please go-ahead.

Hemal — — Analyst

Thanks for the opportunity. Sir, just some bookkeeping questions, this time the other expenses quarter-on-quarter was very-high, what was the reason for that?

Manish Gangwal — Chief Financial Officer

So there are two, basically one is, as Ravi highlighted, we have increased our A&P spends during the quarter on the back of this IPL campaign, which is ongoing. And the second reason is that the volume have gone up significantly if you see over the quarter-on-quarter, this is 71% including AdBlue. So, the freight component goes up with every — whether it is an AdBluer or a lubricant sale, the freight component goes up, so basically two reasons.

Hemal — — Analyst

So if you take the volume growth, and then that the realization price decline because you might have got, as you rightfully said in the comments 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%?

Unidentified Speaker —

See it is very difficult to predict, because it is segment to segment. There have been input which have [Multiple Speakers] going to increase. Yes, we can — 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.

Hemal — — Analyst

Sir, you don’t see because of the competition pressure that you have to pass-on the prices very fast? I mean, you generally because we are hearing from other players also that the prices are being passed on, so.

Unidentified Speaker —

Hemal, as a industry when the prices come down, you have to pass-on, so it is following the industry norm and every brand has its positioning in the market. So based on that, there is a either increase or decrease, [Indecipherable] or come down, so it is done across industry with the players.

Hemal — — Analyst

So we should continue, we should see this in upcoming — this quarter and the next quarter in the same fashion if the 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 journey will continue, this quarter and next quarter?

Unidentified Speaker —

While it is depending on many factors, one, 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 cost 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.

Analyst — — Analyst

Thank you, sir.And that’s me final question. For the whole year, the forex loss was how much? If you could quantify, I would appreciate it.

Unidentified Speaker —

Yes, for the full year, the forex loss is around INR20 crore versus last year, year before, it was INR4 crore.

Hemal — — Analyst

Thank you, sir.

Unidentified Speaker —

Thank you.

Operator

Thank you. [Operator Instructions] Our next question comes from Chirag Fialoke with RatnaTraya Capital. Please go ahead.

Chirag Fialoke — RatnaTraya Capital — Analyst

Hi, good afternoon. Thank you so much for the opportunity, sir. Just a clarification question. For the quarter, what was the battery sale?

Unidentified Speaker —

Battery, you are asking about the battery sale?

Chirag Fialoke — RatnaTraya Capital — Analyst

Yes.

Unidentified Speaker —

Yes, INR25 crores. For the quarter, the revenue is INR25 crore.

Chirag Fialoke — RatnaTraya Capital — Analyst

Understood. And is it possible for you to guide us on what the A&P spend was for the quarter and the year that has gone by?

Unidentified Speaker —

We always talk about percentages, and as Ravi mentioned, it was merely a percentage higher than December quarter. So close to 4%.

Chirag Fialoke — RatnaTraya Capital — Analyst

For the quarter that went by, it was 4%?

Unidentified Speaker —

Yes.

Chirag Fialoke — RatnaTraya Capital — Analyst

Thank you so much. Thank you.

Unidentified Speaker —

Thank you. Our next question comes from Amit Mehendale with RoboCapital, please go ahead.

Amit Mehendale — RoboCapital — Analyst

Thanks for the opportunity and great set of numbers. I have couple of questions. First on the lubricant business, we are growing twice or thrice the industry side, so what are the key growth drivers there? I mean what is helping us to gain market share there?

Unidentified Speaker —

Yes. So, really, we’ve been explaining 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 deleveraging 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 long-time lubricants. And if you take even in each of the segments, we have outlined B2C, which is the channel business, we have got B2B industrial, we’ve got infrastructure, then again, the OEMs, 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 three 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.

Amit Mehendale — RoboCapital — Analyst

Great, thanks and I have another question on AdBlue business. There I think the volumes have been growing fairly well. So do we really, I mean, do we expect this 20% type of a growth for next two three years? And what is the long-term view in the business, like if you take slightly longish view, how long can the — Yes?

Unidentified Speaker —

So AdBlue has just started, it’s being used in the BS6 products and 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 three liters, four liters of AdBlue will be used. So it’s a consumable. So the growth is going to continue because all vehicles which are BS6, which just started a few years back, will have to use this as compulsory. So it is a growth trajectory. It will certainly grow 25% every year.

Amit Mehendale — RoboCapital — Analyst

All right. And here the sales push or I mean, is it a consumer demand or is it a channel push, how is the end?

Unidentified Speaker —

It’s a mix of everything. It’s a mix of everything, you have distribution, you have to tie up with OEMs, you have to distribute it in all parts of the consumption, you have to put it in outlets which are convenient for people to use and buy in. So it’s a distribution, 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.

Amit Mehendale — RoboCapital — Analyst

Great. I mean, my question here, I mean, thanks for the clarification. My question here is was that suppose there is a consumer that has bought a BS6 vehicle, is the consumer aware that he needs to mix AdBlue or when he goes to your petrol pump, is there someone advising him at that stage?

Unidentified Speaker —

No, no, no, it is compulsory. You have to use it.

Amit Mehendale — RoboCapital — Analyst

Okay.

Unidentified Speaker —

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. [Speech Overlap]

Unidentified Speaker —

It has nothing to do with fuel, when the emission is made, it comes out and it is a separate tank which emits this, sprays this and controls the emission level.

Amit Mehendale — RoboCapital — Analyst

Great. Thanks. Thanks.

Unidentified Speaker —

Thanks, Mr. Mehendale.

Operator

Thank you. Our next question is from Aditi with Aryan Capital. Please go ahead.

Aditi — Aryan Capital. — Analyst

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 work capital days?

Unidentified Speaker —

Yes, our net working capital is around 56, 60 days, gross working capital is around 100 days.

Aditi — Aryan Capital. — Analyst

Okay sir, and sir, another question is you, in some of the previous calls, you have mentioned, how we are investing in the EV value chain. So are there any other kind of investments in may be adjacencies that we are looking at?

Manish Gangwal — Chief Financial Officer

Yes, so currently, we have shared quite regularly that we have invested with our parent company Gulf Oil International, in a company called Indra, which makes card charges out of UK. So we have tested some of those in India. Yeah, we are working on how we can. Take that aspect yet in Indian market, we have invested in our software as a service company on EV for electricity which has stopped 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 care about it and the Board has approved. So definitely watch this space. We are looking at that.

Aditi — Aryan Capital. — Analyst

Thanks.

Operator

Thank you. [Operator Instructions] Our next question comes from Nitin Tiwari with YES Securities India Limited. Please go ahead.

Nitin Tiwari — YES Securities — Analyst

Actually, I have a question around adblue sale. 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 because of the contribution from this product will be very, very limited, and logistic cost of handling that case would become prohibitive for you to basically raise that there is [Phonetic] any further beyond what, I hope you get the drift, right, because like you know, my sense is that in this quarter also, our EBITDA per unit actually would have been better if the adblue sales were actually in line with what the previous quarter’s figures there [Phonetic] and lubricant sales would have been higher. So would that inflection point come where like the logistics cost and distribution cost will become positive for you to sell anymore adblue?

Unidentified Speaker —

Nitin, the way we look at it is that it is an incremental business to us. And there is a lot of synergy in terms of distribution, the [Indecipherable] and 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 isn’t– while we do not make percentage or per liter margin same as lubricant. But whatever is the exited [Phonetic] positive EBITDA contribution business and adding to the overall city. So that’s the way we are looking at it. It’s a great opportunity in terms of volume also. And as Ravi mentioned the 25% volume growth is going to continue for the next two, three years at least. So we are looking at it more as a addition to the city, than in terms of percentage or other metrics.

Unidentified Speaker —

And then as we are selling it with margin. As we mentioned, the margin is single digit. It’s not that there is no margin, obviously, we would not want to sell it, if it is not making any [Speech Overlap]

Unidentified Speaker —

And the margin is of course after the freight cost and all which you are talking about.

Nitin Tiwari — YES Securities — Analyst

Understood, sir. Thank you.

Unidentified Speaker —

Thanks, Nitin.

Operator

Thank you. Our next question is from Nirav Savai with Abakkus AMC. Please go ahead.

Nirav Savai — Abakkus AMC — Analyst

Hi, Sir, my question is regarding the B2B contribution this quarter, the industrial part of it. What exactly was the shares or in volumes?

Manish Gangwal — Chief Financial Officer

The industrial volume for the quarter has been actually, the ratio has been more or less similar as earlier quarter, 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.

Nirav Savai — Abakkus AMC — Analyst

Okay, so about 14% to 15% contribution on the industrial side. And how do we see that growing in the next two to three years?

Manish Gangwal — Chief Financial Officer

Yes, in terms of industrial business, actually we are there is lot of focus and we will talk about it.

Unidentified Speaker —

So we have 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, very good sales team and distributor set. So we are growing very well in this segment, as you know, the last two-three years in India in terms of the manufacturing impetus has been really very good, a lot of exports also happening. So right across steel, cement, textile plastics, these are the industries which we’re 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 larger share, but we are working our way. We have very low market-share here. 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 one more segment we cater to, which 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 a 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 and this is multi-fold by the government. So this is again a double-digit plus business for us. So both these businesses have done well for our growth in both these segments.

Nirav Savai — Abakkus AMC — Analyst

All right, thanks. So any number which can provide in terms of market-share in this infra segment?

Unidentified Speaker —

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’re in.

Nirav Savai — Abakkus AMC — Analyst

There also we feel there is enough for improvement in market share?

Unidentified Speaker —

Yes, yes.

Nirav Savai — Abakkus AMC — Analyst

All right, great. That’s it from my side.

Unidentified Speaker —

Thank you,

Operator

Thank you. Our next question is from Hemal with an investor. Please go-ahead.

Hemal — — Analyst

Sorry, I guess one question, what is the net cash position you said? I didn’t hear it so.

Unidentified Speaker —

So as of 31st March — You’re talking of net cash?

Hemal — — Analyst

Yes.

Unidentified Speaker —

As of 31st March, we have a gross cash of around INR650 crores and net cash of around INR325 crores.

Nirav Savai — Abakkus AMC — Analyst

That’s it, sir. Thank you.

Operator

Thank you. Our next question is from Nisha Mulchandani, an investor. Please go-ahead.

Nisha Mulchandani — — Analyst

Hello sir, congratulations on a great set of results.

Unidentified Speaker —

Thank you.

Nisha Mulchandani — — Analyst

Just some of the bookkeeping question, sir, we see there is an investment increase of approximately INR30 crore to 35 crore during the year and any a spike in other assets as well which nearly ranges around the same [Indecipherable]. So, what are these prices and you can help us with certain details?

Unidentified Speaker —

So, can you come back with your question again?

Nisha Mulchandani — — Analyst

So there are increasing investment which we’ve been seeing in the balance sheet and perhaps. I mean, other assets as well, approximately of INR30 crore,35 crore, so can you help us with some details around those?

Unidentified Speaker —

Thank you. See, we have invested in a company called Indra Technologies in UK, which is an EV charger manufacturing company. That was the investment which was done sometime say in the year ’21, ’22 and all also partly in’22, ’23, beginning first-half. They had a second round of fund raise, the next round of fundraise. And their valuation went up and accordingly, we had declared in our December quarter results around INR35 crore increase in the other comprehensive income.

So that is — that is the reflection in the investment which of around INR35 crores in investment.

Nisha Mulchandani — — Analyst

Okay. Okay and sir, on the volume piece, I believe you mentioned that the goal has been 36ml, so can you help us with a phase-wise breakup around that, like motorcycles you mentioned has seen a growth, industrials have seen a growth. How are the other segments doing?

Unidentified Speaker —

So no, we would not like to share this because of competitive reasons.

Nisha Mulchandani — — Analyst

Okay. And because of the — just the last question, because of the better economic conditions that we see in the overall country, has there been any improvement in the exports or they remain as the same as last levels? last quarter or so.

Unidentified Speaker —

You’re talking of exports?

Nisha Mulchandani — — Analyst

Yes,

Unidentified Speaker —

Yes, we have increased our exports in the year as well. So exports have also grown double-digit on our Gulf product 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.

Nisha Mulchandani — — Analyst

Okay, thank you so much.

Unidentified Speaker —

Thank you.

Operator

Thank you. Our next question is from Harsh Maru with MK Global. Please go-ahead.

Harsh Maru — Emkay Global — Analyst

Yeah, thank you for the opportunity. So my first question is regarding like if you can throw 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?

Unidentified Speaker —

Yes, Mr. Maru, we are definitely looking at how we can increase, that’s part of every — I think every company’s endeavour and definitely, if you see synthetics semi-synthetic products are shared with the PCMO segment, so these are some of the things. And 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 good share in the synthetic segment and try to take that up substantially in the coming years.

Harsh Maru — Emkay Global — Analyst

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 two three to four quarters?

Unidentified Speaker —

I think we mentioned it, that we are we have a certain positioning in the market. We will maintain that right across segments and whatever is required in the market, there is obviously a market will get different pricing levels and we will continue to maintain our strengths and we have indicated that we want to take the margin, 12% to 14% band, going-forward. Overall for the company, because we have different segments, the OEMs as channel. So we have to obviously look at various pricing levels across segments.

Harsh Maru — Emkay Global — Analyst

So strategy to manage, gain market-share and maintaining a decent margin continues? Sure sir, thank you so much.

Operator

Thank you. Our next question is from Nimesh Shah with Emkay Global Investment Managers Limited. Please go-ahead.

Nimesh Shah — — Analyst

Yeah, thanks for the opportunity and congratulations on good set of numbers. So I just wanted some clarification. So you mentioned double-digit volume growth and 12% to 14% EBITDA margin of that look to target over the coming few years. So this double-digit volume growth, does it include AdBlue sales or it’s called core lubricants?

Unidentified Speaker —

Core lubes. Core lubes.

Nimesh Shah — — Analyst

Okay, and the 12% to 14% EBITDA margin is including both audits?

Unidentified Speaker —

12% to 14 % is rating is for the company. Over to you for a company. Okay, okay. Understood. Yes, that’s it from my side. Thank you.

Unidentified Speaker —

Thank you Mr Shah.

Operator

Thank you. Our next question is from Aman Vishwakarma, with Robo Capital, please go-ahead.

Aman Vishwakarma — Robo Capital — Analyst

Yeah, hello, hi again, 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, 100 kiloliters of EV fluids do have been like have you been able to achieve that?

Unidentified Speaker —

That was for the year.

Aman Vishwakarma — Robo Capital — Analyst

Yeah, for the year.

Unidentified Speaker —

Yes, yes, we are on-track. It will get you during the at what doesn’t get used every always by throughout the year. So that is still the target.

Aman Vishwakarma — Robo Capital — Analyst

Okay, two more volumes for Q4.

Unidentified Speaker —

Can you it, it is just started, so we are looking at more than 100 kilos more annual perspective based on what it is going to happen a new very nascent area. What we found.

Aman Vishwakarma — Robo Capital — Analyst

So what I’m trying to understand here is what. So how do you see this 100 kiloliters go going for like going-forward?

Unidentified Speaker —

Yeah, 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 seven OEMs. Four or five of them are directly making vehicles, the other component makers.

So we will have to track the segment to Mr. Shekhar. It’s not easy to predict, and as of now there is no demand which has come to retail level. Yeah, this would mean only OEMs such. This is mainly factories is when the vehicle is.

Aman Vishwakarma — Robo Capital — Analyst

Okay, and so your boy also learning is it’s different than what you would have in a normalized things know, how does that work.

Unidentified Speaker —

So there is no — so these are all other fluids especially how do nonfluid’s and also it is a it is filled in, it is replaced. But at the moment, the demand is very-very low.

Aman Vishwakarma — Robo Capital — Analyst

Also, sir. And could you guide me as to what sort of blended realization you’re saying going-forward.

Unidentified Speaker —

So they have they good comparable to slightly more.

Aman Vishwakarma — Robo Capital — Analyst

I know 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 adding new sales going up or we expect it to stay constant.

Unidentified Speaker —

I didn’t get your question, when you say blended. And lenders realization per liter myself. Sorry. you see if you, as we have mentioned ad Blue sale is going to grow at least 2025 percent. And the new sales will be in terms of volume will be double-digit, but it will not be certainly high-double digit or 2025 percent. So on the blended level, the realization will look different, but in terms of absolute in a separate realizations, both. We are targeting that obviously loops Ravi mentioned about increasing, how we can increase our mix and in all move towards even higher category products, synthetic products and all and add new is a 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 would look slightly different.

Aman Vishwakarma — Robo Capital — Analyst

Okay sir, thanks, that’s all from my end. Thank you.

Unidentified Speaker —

Thank you.

Operator

Thank you. Ladies and gentlemen. And 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.

Nitin Tiwari — YES Securities — Analyst

Thank you. I think overall, we’ve got a number of questions, I hope we’ve 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 are 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 number of global initiatives that we are looking at right across in mobility, in many other areas on our technology in terms of the brand and there are lots of platforms we have created globally. It billions in Formula one racing in India, we have developed a lot of 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 margin enhancement through better products and we are looking at definitely profitable growth going-forward. And so we 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 you soon. Thank you.

Operator

[Operator Closing Remarks]