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GULF OIL Reports Turnover of Rs.163.75 Crores
October 27th, 2006
Hyderabad, October 27th, 2006: GULF OIL Corporation, a Hinduja Group Company, has reported a turnover of Rs.163.75 crores for the quarter ended 30th September, 2006 as against Rs.110.51 crores in the corresponding quarter of the previous year. Net Profit for the quarter was Rs.3.59 crores as against Rs.6.56 crores in the corresponding quarter last year mainly due to startup of the Speciality Chemical Division’s new plant from June 2006.
Lubricants Division
The Lubricants Division achieved revenue of Rs.99.70 crores as compared to Rs.51.87 crores in the corresponding quarter, an increase of 92%. The profit for the Division was Rs.2.90 crores as compared to Rs.3.36 crores for the corresponding quarter. The profits of the Division could not keep pace with the turnover, on account of increase in base oil cost, which could not be passed on fully, to the end users. Encouraging volume growth and realization thereof together with opportunity based additional business and adequate control on overheads enabled to recover significant increase in raw material costs during the quarter. Additional measures have since been initiated to improve the realization and margins during remaining part of the financial year.
The response to Ashok Leyland-Gulf Oil Co-Branded lubricants sales continued to be encouraging. The technology department has made commendable progress in cost effective formulations meeting customer requirements. We have received the acceptance contract from Indian Oil Corporation Ltd allowing us access to their retail outlets on all India basis for marketing the Car Care Products.
Explosives Division
The Explosives Division achieved a turnover of Rs.32.32 crores as compared to Rs.29.64 crores, an increase of 9%. The Division incurred a loss of Rs.1.45 crores as compared to a profit of Rs.5.56 lakhs.The loss was on account of increase in raw material costs which could not be passed on.
Supply of bulk explosives has been started to three major projects in Singareni Collieries Company Limited. Fresh orders have been received for supply of bulk explosives and blasting accessories from 2 new iron ore mining blocks at Koira in Orissa State and few more are in the pipeline. Trials with e-Det Electronic Detonator was successfully carried out at the Nichitpur Colliery of Bharat Coking Coal Limited, a major subsidiary of Coal India Limited.
The Special Products Group has developed new product AMPACT connector for jointing power cables used in power transmission. The Group received an order worth around Rs.4 crores from Defence for a particular type of detonator and more orders are in the pipeline. High-energetic materials are being developed for the Defence.
The Metal Cladding Division performed satisfactorily as per the budget and received a performance bonus from one of its clients for executing orders on time.
(IDL consult) Mining and Infrastructure Division
The turnover of IDLconsult Division was Rs.10.38 crores as compared to Rs.18.70 crores in the corresponding quarter and the profit was Rs.2.12 crores as compared to Rs.3.46 crores.
The major activities in this quarter were iron ore mining, screening and crushing in the Barbil region of Orissa.
The Division has bagged Rs 110 crores mining contract from Singareni Collieries and the work will start by Nov 06.
Speciality Chemicals Division
The Speciality Chemicals Division plant started operations from June 1, 2006. Three out of five blocks have started production. The sales turnover has been Rs. 5.91 crores for the quarter and is growing steadily. Production is stabilising in line with marketing requirements. However, startup costs have been high and have been charged during the quarter, although, the production activity has not fully picked up.
Developmental work on 3 cephalosporin molecules has been completed and processes stabilised.
Infrastructure & Property Development
Work on the development of a commercial complex at Begumpet will commence shortly as the requisite approvals have been received. The Knowledge Park at Hyderabad is awaiting necessary approvals.
Finalisation of the plans with the consultants, local architects for development of residential and commercial complex at Malleswaram, Bangalore is in progress.
For further information please visit www.gulfoilcorp.com or contact:
Mr.N.C.Sekharan,
Head – SBU, GULF OIL Corporation Ltd.,
Lubricants Division,
at022-28248240, 56989900, 9819338850
Lt. Col. C. Raja Sekar (Retd.),
AGM (Corporate Affairs),
GULF OIL Corporation Ltd.,
at 040-23814648
Ms.Sharmila Banerjee,
Vice President (Corporate Communications),
at 022-24960707 – Extn. 208,
Mobile: 9821301212
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