GULF OIL Turnover Increases by 30%

May 25th, 2007

Hyderabad, May 25th, 2007: In income in Q4. Profit for Q4 was Rs. 7.90crores as against Rs. 4.03 crores last year.

For the year the Total Income increased by 30% to Rs. 605 crores and the Net Profit Rs. 23.01 crores giving an EPS of Rs. 16.58 ( Rs. 16.43 previous year ). The Board has recommended a Dividend of Rs. 7.50 per share ( 75% ) as against 70% for the previous year .

The total exports were Rs. 38.91 crores, achieving a growth of 22% over last year.

Division wise performance and highlights are as under:

Lubricants Division

GULF OIL Corporation, a Hinduja Group Company, has reported a 30% increase The Lubricants business for the financial year grew by 38% from a turnover of Rs. 257 crores to Rs. 355 crores for the current year. The Division had embarked on the twin strategies of growing its top-end Diesel Engine Oils and obtaining a strong foothold in the Motorcycle Oils segment. The new products, such as the Ashok Leyland-Gulf Oil co-branded oils and Gulf Pride 4T Plus found excellent response from the customers. The Division undertook new initiatives in the retail channel, resulting in substantial expansion of its retail network. In order to further strengthen the Gulf brand, the Division initiated an intensive advertising campaign on Television during the ICC World Cup.

Explosives Division

The Explosives Division faced an intensely competitive market during the year. Inspite of this, the business grew by 13% from Rs. 129 crores last year to Rs. 146 cores. The Division was able to counter the unremunerative prices from a major customer in the coal industry by shifting its marketing emphasis to non-coal products and customers. The loss in margin on such sales was off set to some extent by this shift in focus to the non-coal segments. The introduction of Electronic Detonators and Emulsion Boosters also helped in reducing the bottom-line impacts.

The boom in the mining industry has created a demand for the Division’s products for private mining, besides infrastructure activities. The trade market which was dormant for the last 3 years has picked up activity and there is a spurt in demand. Prices in the trade market also firmed up towards the year-end.

The Division also had a good export year with growth in explosives and accessories recording an increase of 19% over the previous year. The other Groups in the Division such as Metal Clading and Special Products for defence and space applications closed the year with increase in business of 17% and 72% respectively.

Mining and Infrastructure Division

IDLconsult Division has made an excellent impact with their Mining services by bagging 2 large tenders at Manuguru ( SCCL ) and Dudhichua ( NCL ). The execution of the largest Mining Contract till date in India has started successfully at Dudhichua Project of Northern Coalfields at Singrauli. The Division has invested Rs 75 cr for its two large Coalmining Projects in the second half of F 07. The Division has also started execution of the contract in the iron ore mine of NMDC at Donimalai.

IDLconsult is also operating nine iron ore mines in Barbil region of Orissa along with iron ore screening and crushing work. The objective for Total Mining Solutions offered by the Division to various iron ore mining companies have resulted in the Division undertaking several crushing and screening operations at the pithead.

Having successfully completed the shaft sinking work and underground tunnel work in Delhi Metro Rail Project, the Division is looking forward to take up a few more construction Projects. Presently the Division has taken up works at Jamnagar for the expansion of the Reliance Plant and structural works for the Outer Ring Road construction in Hyderabad.

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 Rs. 400 crores of orders for execution.

Speciality Chemicals Division

The Division’s plant on the outskirts of Hyderabad started operations from June 2006. It has recorded a turnover of Rs. 34 crores during the 7 months period.

The Division with strong R & D back-up has been able to cater to a wide range of discerning customers and introduced three Cephalosporin molecules required by the customers during the year. The R & D pipeline is already having new four products ready for Pilot Plant work, whilst 6 Drug Master Files (DMFs) have been submitted during the year.

With the API operations stabilising, the Division has started focusing on the formulations segment for the Eastern and Southern markets.

Property Development

The Company holds several properties in Bangalore, Hyderabad, and Mumbai suburbs. The separate communication regarding Development of the properties is being released shortly.

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

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