|
GULF OIL increases Dividend to 65%
Hyderabad, May 25th, 2005:
GULF OIL Corporation, a Hinduja Group Company, has reported a
16% increase in turnover over last year. However, the profit
for the year was Rs. 20.03 crores as against Rs. 22.91 crores
last year mainly on account of Rs. 12 crores lower realisation
from sale of land compared to the previous year. In view of
the higher operating profit, the Board recommended a higher
Dividend of 65% (last year 60%).
The total exports were Rs. 32.00 crores, nearly
double of last year’s performance. In Q 4, the Company
increased its sales by 22% from Rs. 103.40 crores to Rs.
125.89 crores. Operating profit improved, without sale of
land, to Rs. 2.75 crores as against a marginal loss last
year. The Q 4 improved performance was mainly on account of
19% increase in sales by the Lubricants Division to Rs. 278
crores (Rs. 234 crores). The Explosives Division performance
in Q-4 with higher tender prices awarded by the Coal India
Limited from 1st March, 2005 and other major
customers helped to improve the bottom line.
Lubricants Division grew by 19%, inspite of
steep increase of nearly 200% in the cost of major raw
materials such as base oils. The Division performed extremely
well due to planned International sourcing system operated
through Gulf Oil International. The diversification projects
undertaken by the Division for GRACO Lubricating systems, Gulf
Authorised Mechanic Services (GAMS), vehicle filters as well
as car care products contributed to the improved results.
Exports also grew over 300% over last year to Rs. 18 crores.
Explosives Division performance in the second
half of the year declined mainly on account of steep increase
in raw material prices such as Ammonium Nitrate and metals
which were not compensated by corresponding increase in
realisation by public sector units which are tender driven.
However, Coal India Limited, awarded new prices for explosives
from 1st March, 2005 which has substantially helped
the performance of the Division in Q-4. The price increase
effective 1st March, 2005 would support the
Division’s performance in the current year and by way of
turnover and profits. The Division has been engaged in R & D
work in collaboration with defence establishments since the
last 3 years, which included stringent testing cycles over
nearly two years. Prestigious orders have started and the
Division is expected to perform well due to major orders
during the current year.
The Contracts Division which undertakes work
relating to mining and infrastructure services has bagged
major contracts in iron ore and limestone mining during the
quarter. These major contracts would translate to large
volumes as well as improved profitability in the current year.
The Speciality Chemicals Division’s API
production facility set up at a capital cost of over Rs. 24
crores is in the final stages of commissioning.
Precommissioning checks and approvals for the cGMP compliant
factory are in final stages. Commercial production is
expected to start within the next two months. The Division
would be producing cardiac, anti-inflammatory, antihistamine
and anti-depressant bulk drugs. Tie-ups have already been
concluded with major marketing agencies in USA and Europe. 5
DMFs are expected to be filed within the next six months. In
addition, the R & D laboratories have been upgraded to GLP
standards and several contract research assignments are
currently under discussion.
The property development project undertaken by
the Company at Bangalore has progressed well. Construction
work is expected to be started by middle of this fiscal year.
A major strength of the Company is in R & D activities in
electronic based initiating devices, energetic materials,
organic synthesis, pyrotechnics, high performance
lubricants/additives, special applications for defence/space
and APIs. With the emergence of India as a major destination
for contract research the Board decided to set up a large
Technology Knowledge Park to support research and development
in IT, Bio-IT and Life Sciences areas at the Hyderabad campus.
Project work and evaluation of the project has been started
with technical consultancy services from a German consultancy
group specialising in setting up of international quality
technology parks.
For further information please visit
www.gulfoilcorp.com or contact:
Mr. R. N.
Zaidu, General Manager at 022-28248240,
56989900, 98193-38850.
Ms. Renu Chaudhry,
GULF OIL Corporation Ltd. at 040-23700775
Ms.
Sharmila Banerjee, Vice President (Corporate
Communications), Hinduja Group at 022-24960707 – Extn. 208,
Mobile: 9821301212.
For GULF OIL
Corporation Limited,
S.
Pramanik
Managing
Director
Date:
25.05.2005
|
