14 May 2010

                   Gulf Oil Turnover crosses  Rs. 1,000 crores

                   Profit Increases by  55% for year

                   Dividend  90%

 

 

Mumbai, May 14, 2010: Gulf Oil Corporation Ltd., a Hinduja Group Company, has reported an increase in turnover by 7% to Rs. 1066 for the year 2009-10, and Profit after Tax by 55% to Rs. 45 crores.  The Board has recommended a Dividend of Rs. 1.80 per share ( 90% ) for the year 2009-10. 

 

Division wise performance and highlights are as under:

 

LUBRICANTS  DIVISION:

 

During the Q4 of the financial year 2009-10, the Lubricants Division achieved a gross turnover of Rs. 171 crores as compared to Rs. 144 Crores in the corresponding quarter of the previous year, a growth of 19% on QoQ basis. For the year ended 31^st March’10, Lubricants Division achieved gross turnover of Rs.564 crores compared to Rs. 508 Crores in the previous year 2008-09. Better margins on higher turnover supported by lower interest costs resulted in a much improved performance over the previous year.

 

The automobile industry which started off on a sedate note in the beginning of the year, which saw drops in the sales of heavy commercial vehicles in the first 2 quarters, witnessed strong growth from Q4 onwards. Sales of commercial vehicles were back on track from October 2009 onwards. Other vehicles (cars, 2 wheelers, tractors) grew well across the year & overall the automobile industry grew by over 25 %. Accordingly, demand conditions in the lube industry picked up from Q3 across automotive & industrial segments.

  

The Division has increased it’s share in the marketplace and continued to grow well in New Generation DEO, Motorcycle and Passenger cars Motor Oil segments with segment wise approach backed by various brand building initiatives.  The Division  has launched  a multi-media campaign comprising of TV Advertising, Translites in Key airports, , Auto Magazines with the theme of “Maximum performance” which involved 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 & focussing on promoting sales of new products/SKUs.

 

The business prospects of the Division are expected to grow substantially with the increasing demand building up in the automotive sector of the economy.

 

EXPLOSIVES   DIVISION

 

The Explosives Division continued to grow and achieved a turnover of Rs. 81 crores in the Q4 as compared to Rs.74 crores in the corresponding quarter of the previous year, representing growth of 9% QoQ. The annual growth was 14% YOY. Export turnover in Q4 was Rs. 15 Crore as compared to Rs. 10 crore of previous year, resulting in a growth of 50%. Operations during the year were robust as the mining sectors of the economy grew by 9%. The Division’s performance was enhanced due to higher market prices for products, efficient procurement of Ammonium Nitrate and introduction of new high value products for tunneling.

 

The Division has secured orders valued at Rs. 148 crores from Coal India Ltd. for the current year.

 

MINING  AND  INFRASTRUCTURE  DIVISION (IDLconsult DIVISION)

 

IDLconsult Division reported a turnover of Rs 43 crores in Q4 (Rs 65 crores in Q4 of last year), based on activity in long term contracts in coal and metal mining sectors.

 

The large 36 months coal Project at Dudhichua was completed ahead of Schedule in Q3 of this year. Q4 revenue is without any contribution from this Project. Major revenue came from another large open cast coalmine operation at Nigahi Project in NCL ( a subsidiary of Coal India Limited ). 

 

 

The Division's operation in the iron ore mines at Barbil ( Orissa ) region and Karnataka region have been continuing.  The effect of slow-down in mining in Orissa has affected the turnover of the Division.

 

Manganese mining with Adhunik Group is continuing successfully.  Mining related Infrastructure work at Utkal Alumina is progressing slowly because of local constraints.

 

The Division has started its four year contract Uranium Corporation of India valued at   Rs. 82 crores. The Division is entering the filed of Uranium Mining for the first time with this prestigious contract.

 

The current order book position as on 31st March 2010 was Rs. 400 cr 

 

 

PROPERTY  DEVELOPMENT

 

The concept of integrated IT / ITES Park at Bangalore is progressing well. The development of 5.05 million sq.ft. will also cover hotel, retail outlets and commercial malls, and service apartments. Land development, setting up of a large site office has been completed. Construction work will be commenced during the year.

 

With regard to the Hyderabad property, plans for developing 9.8 million sq.ft. is under way. The Company is currently in discussion with the Greater Hyderabad Municipal Corporation ( GHMC ) which has proposed a major 100 ft. connector road through our property to the Hi-Tech City.  Alignment as well as other details are under finalisation.

 

 

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