29 Jan 2010

Total Income higher by 12.4%

Mumbai, January 29th, 2010

Gulf Oil Corporation Ltd., a Hinduja Group Company, has reported a Turnover of Rs. 233 crores an increase of 12.4% in Q3. Profit after tax was Rs. 6.78 crores, ( Negative Rs. 5.36 crores ). The cumulative Q3 Profit After Tax was Rs. 40 crores against Rs. 2.30 crores in the previous year. The Turnover for 9 month also improved by 6.9 % to 702 crores. Division wise performance and highlights are as under:

LUBRICANTS DIVISION:

During the 3rd quarter of the financial year 2009-10, the Lubricants Division achieved a gross turnover of Rs.137 crores as compared to Rs.104 crores in the corresponding quarter of the previous year i.e. a growth of 32% on QoQ basis. The overall economic scenario in the recent months has improved with a marked pick up in the Commercial Vehicle sector, where Gulf Lubricants have a stronger presence. Growth in revenues for the quarter is a reflection of this.

The Division has retained its share in the marketplace and improved sales in segments like Commercial Vehicles and Passenger Cars. For the passenger car segment a slew of new technology products have been launched. The newly launched Gulf Max range of car lubricants for passenger cars, introduced from Gulf Oil’s global portfolio, has received encouraging response from the market. The USP of this range - MX4 technology that delivers superior benefits to the consumers has positively impacted the acceptance of these new products amongst users and influencers. The Division has launched a multi-media campaign comprising of TV advertising, translites in airports, auto magazines with the theme of “Maximum Performance” which involves the ‘KINGS XI Punjab’ team consisting of cricketing stars like Yuvraj Singh, Irfan Pathan, Bret Lee, Sreesanth and others.

The Division continued its focus on the Bazaar market by launching customised promotions, special product-packs catering to the agricultural segment, adding new fleet customers and focussing on promoting sales of new products/SKUs. Further, by continuing the customer and trade campaigns in 2-wheeler segment, the 4T sales volume grew well during the quarter and was in line with the growth of 2-wheeler industry. The Division is continuing sponsorship of motor sports in 2 wheelers through National Dirt Track championship to promote the brand in 2 wheeler segment

EXPLOSIVES DIVISION

The Explosives Division turnover continued to grow and clocked a net turnover of Rs. 68 crores in 3rd quarter as compared to Rs. 63 crores of last year’s 3rd quarter, representing growth of 7.9%. This was accomplished while focusing on non-coal and export segments.

Small-dia emulsion manufacturing facility has been commissioned at Rourkela. This will help the Division in supplying products to the growing tunneling sector.

MINING AND INFRASTRUCTURE DIVISION (IDLconsult DIVISION)

IDLconsult Division reported a turnover of Rs. 47 crores in Q3 ( Rs 51 crores in Q3 of last year), based on activity in long term contracts for service in coal and iron ore sectors. Successful completion of work at the Dudhichua Mine 4 months ahead of schedule in November resulted in a marginal drop in turnover for the quarter.

Major revenue came from the large open cast coalmine operation at Nigahi Project in Northern Coalfields Limited (a subsidiary of Coal India Limited.

The Division's operation in the iron ore mines at Barbil region and Karnataka region have been continuing. The effect of slow-down in mining in the Orissa sector has affected volumes in the Orissa region. However, Manganese mining with Adhunik Group is continuing successfully.

The current order booking position as on 31st Dec 2009 is Rs 300 crores.

For further information please visit www.gulfoilcorp.com or contact:

Mr. R. Varadarajan, Vice President, Lubricants Division, GULF OIL Corporation Ltd., at 022-28248240, 56989900, Mobile : 9819338850

Mr. Jayaram Ramanathan, Vice President (Corporate Communications & PR), Hinduja Group at 022-28248359 – Extn. 232, Mobile : 9867212997

Ms.Devdatta Mulchandani – Clea Public Relations, Mobile : 9444076909

Mrs. R. Chaudhry, Executive Secretary to MD, Gulf Oil Corporation Limited, Hyderabad at 040-23700750, Mobile : 9849052064