GULF OIL Turnover Increases by 17% and profit by 45% in Q2

July 25th, 2007

Hyderabad, July 24th, 2007: GULF OIL Corporation, a Hinduja Group Company, has reported a 44% increase in income in Q1.  Profit Before Tax for Q1 was Rs. 8.11 crores as against Rs. 5.95 crores last year. However, Profit after tax was Rs. 5.32 crores (Rs. 5.04 crores for the same time last year) due to tax provisions.

Division wise performance and highlights are as under:

Lubricants Division

During the first quarter of the financial year 2007-08, the Lubricants SBU achieved a gross turnover of Rs 71.81 crores as compared to Rs. 70.81 crores in the corresponding quarter of the previous year. Lubricants Division achieved a high growth of 17% and higher margins in retail automotive lubricants and significant increase in top-end products.

The Lubricants Division continued aggressively the twin strategies of growing its top-end Diesel Engine oils and Motor-cycle oils segment .

The country’s  first long drain diesel engine oil launched jointly by Ashok Leyland and Gulf Oil with a drain interval of 36000Kms achieved excellent growth during the quarter. This trend-setting initiative is expected to produce significant savings in vehicle operating costs and also contribute to environment protection by way of reducing the oil consumption.

In the Motor-cycle segment, the lead product Gulf Pride 4T Plus was positioned as a top-end product with a customer proposition of 10,000 kms service period . The product sales increased by 30% during the quarter.

The Division achieved considerable growth in the ancillary products through increased sales of wide range of Gulf Filters and Gulf Car-care products.

To further strengthen the Gulf brand, an aggressive media campaign through TV was undertaken during the ICC cricket world cup telecast during March-April.

Explosives Division

The Explosives Division continued to make progressive growth and achieved turnover of Rs.42 crores in 1st quarter as compared to Rs. 34 crores in the corresponding  quarter of last year, representing double-digit growth of 24%. This was accomplished by emphasizing on non-coal, trade, export and metal cladding segments in spite of lower allocation of business from Coal India. 

Exports of the explosives and accessories have achieved record growth of 56% compared to corresponding quarter of last year.

The mining boom in the country is increasing the demand for this Division and capacities have been augmented in anticipation of this surge.

Mining and Infrastructure Division

The total turn over of the Division in the first quarter (Q1) was Rs. 34 crores as against Rs. 12 crores in the last year’s Q1.

IDLconsult Division has made an excellent impact with their Mining services in the Mining Sector.  The execution of the largest Mining Contract till date in India is going on successfully at Dudhichua Project of Northern Coalfields at Singrauli.  The Division has invested Rs. 75 crores for its two large Coalmining Projects during the latter part of last year. The Division is on schedule in iron ore mining services in Orissa and in NMDC at Donimalai. In Orissa, the Division is also operating screening and crushing plants for its clients.

In infrastructural projects, the structural works for the outer ring Road in Hyderabad is in progress while the second phase of structural work at Jamnagar for Reliance has started after successful completion of the first phase last month.

Due to the high technical standards and quality of work, the Division is being offered various contracts in the Mining and construction Sectors.  Presently the Division has about Rs 450 cr of order booked.

Speciality Chemicals Division

The Company has firmed up its plans for the manufacture of second generation and third generation cephalosporin molecules and the product has been found acceptable by major consumers in the formulation sector.  Further work is on for the manufacture of Cephalosporin intermediates for export.

Domestic sales for formulations have picked up in the East and in the South.  The Company plans to introduce five injectible cephalosporins in the second quarter.

Property Development

Arrangement for development of properties at Hyderabad and 40 acres at Bangalore has been entered into with Aasia Properties Development limited based on property end use advice received from Cushman & Wakefield. Architects for the development of the 40 acres at Bangalore have been selected and the preparatory work in progress.

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

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