Gulf Oil Corporation Q1 Net Profit up by 45%

July 31, 2003

Highlights

Hyderabad, July 31, 2003: Gulf Oil Corporation Ltd. (GOCL), one of the leading companies in the business of lubricants, commercial explosives and mining & infrastructure operations announced the unaudited financial results for the quarter ended June 2003.

The Company reported a net profit of Rs. 5.65 crores in the first quarter ended June 2003, up by 45% as compared to the Rs. 3.89 crores in the corresponding quarter last year. The total turnover for the first quarter was Rs. 85.41 crores as against Rs. 86.50 crores in the first quarter of the previous year, a marhinal decrease of 1%. However, the operating profit for the first quarter of the current year rose to Rs. 6.65 crores as compared to Rs. 4.61 crores in the same period last year, recording an increase of 44%. The Earnings Per Share (EPS) for the quarter ended June 2003 was also higher at Rs. 4.07 as compared to Rs. 2.80 last year.

Lubricants Division

The lubricants division posted a turnover of Rs 36.95 crores in the first quarter ended June 2003 as compared to the corresponding quarter of the last year. This represents a growth of 2.6%. Exports were at Rs.1.38 crores.

During the quarter, the company entered into a Joint Venture with Oil Bangladesh Ltd. According to an agreement signed in Dhaka earlier this month, a lube blending operation will be started in Bangladesh, which will function, under a newly formed company 'Gulf Oil Bangladesh Ltd.' (GOBL) with its head office in Dhaka. Gulf Oil Corporation will hold 51% stake while Oil Bangladesh will hold 49% stake in the new company. The total size of the lubricants market in Bangladesh is estimated at 70000 MT per annum, with an annual growth rate of 6-8%. In the first year of operations, Gulf Oil Bangladesh is targeting a market share of more than 7%, which will translate into a turnover of US$ 5.4 million.

During the quarter, the company launched a range of 'Car Care' products. These products include a dashboard polish, glass & crystal cleaner, multi-functional fluid, multi-purpose grease, air conditioner cleaner, tyre inflate & repair, deoxidizer for electric contacts. concentrated release fluid and copper lubricant.

IDL Divisions:

Explosives Business

During the quarter ended June 2003 the Explosives and Detonator sales were lower at Rs.32.08 crores as compared to Rs. 36.52 crores in the corresponding period last year. The shortfall was mainly on account of transporters' strike in April 2003 and due to non-availability of ship for Exports.

During the quarter ended June 2003, the Contracts Division handling mining / infrastructure projects recorded a turnover of Rs.8.89 crores as compared to Rs.7.53 crores in the corresponding quarter last year, thus showing an increase of 18%. The Division successfully completed their prestigious assignment with the international consortium International Metro Civil Contractors, Dywidag-L&T-Samsung-IRCON-Shimizu JV for shaft sinking in Chawari Bazar area of the Delhi Metro Project. The Division has now undertaken tunnelling work for the Delhi Metro Project.

About Gulf Oil Corporation Limited

Gulf Oil Corporation Ltd. is a member of the global Hinduja Group. Its IDL Division offers the world's widest range of explosives, detonators, allied products and Contract Blasting/Mining services. It has a presence in 21 countries. It is one of the top two manufacturers in India and top five internationally. Its lubricants division is the second largest in the private sector, in the Indian Lubricants market and it offers all kinds of lubricants, greases. brake fluids, oil filters and coolants required by the Indian automobile market. In addition to the above, it also offers various kinds of specialty industrial lubricants. The other divisions have a presence in the business of Building Products and Floriculture. The Lubes and Explosives Divisions are ISO 9002 certified. The Lubes Division plans to achieve ISO 4000 certification soon.

For further information please contact:

Mr S. N. Raina
General Manager (Business Planning)
GULF OIL Corporation Ltd
Hyderabad
Email: snraina@idlind.com
Tel: 040-23700737

Mr. Jimmy Bhada
GULF OIL Corporation Ltd.
Mumbai
Tel: 022-28248240 / 56989900

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