GULF OIL Turnover Rises 36%:  Net Profit  + 27%

January 28th, 2008

Hyderabad, January 28th, 2007: GULF OIL Corporation, a Hinduja Group Company, has reported a  turnover of Rs.167.41 crores for the quarter ended 31st December, 2006 as against Rs.122.92 crores in the corresponding quarter of the previous year. Net Profit for the quarter was Rs. 6.53 crores ( Rs. 5.11 crores ) higher by 27% compared to the corresponding quarter last year.

Lubricants Division

The Lubricants Division posted a turnover of Rs 85.26 Crores during the third quarter of financial year 2006-07, as compared to Rs 58.37 Crores in the third quarter of the previous year, representing a growth of 46%. Encouraging volume growth and realisation supplemented by our endeavour in containing raw material cost increase and  control on  overheads have enabled the Lubes Division to improve profit before tax and interest to  Rs 4.87 Crores  from Rs 2.64 Crores in the previous year.

The Lube Division achieved good success in its efforts to increase penetration in the commercial vehicles segment through Ashok Leyland - Gulf co-branded lubricants and encouraging volume growth in the fast growing motor cycle segment with the premium quality Gulf Pride 4T Plus (the first 4T Oil in India with JASO MA 2 approval). Gulf Car Care Products were launched in several leading IOC Petrol stations. During the quarter the division exported Lubricants to various countries such as Madagascar, Philippines, Nepal, UAE, Egypt, Sudan and Sierra Leone.  

Explosives Division

The Explosives Division achieved a turnover of Rs.105.15 crores as compared to Rs. 94.52 crores, an increase of 11%. Market prices, especially from Coal India continued to be low along with increase in input costs.These 2 factors adversely affected industry’s margins. This was, however, compensated to some extent, by increase in business of Special Products and Metal Cladding Groups.

Exports of the explosives and accessories recorded a growth of 21% compared to corresponding period of last year.

The Special Product Group has executed prestigious order worth around Rs.4 crores from Defence and recorded 74% growth over the last year corresponding period.

Mining and Infrastructure Division

The total turnover of IDLconsult Division for the 3 quarters of the current year was Rs. 36 crores. With this the total value of projects executed by the Division stands at Rs. 205 cores with margins.The Division has made an excellent showing in recent tenders at Coal India and Singareni Collieries and has bagged three major Mining contracts in this Quarter.  The tenders awarded during the quarter are Manuguru Project at Singareni, Dudhichua Project in Northern Coalfields at Singrauli and Donimalai iron ore mine of NMDC. Out of these Dudhichua Project is the largest contract till date in the Coalmining belt in India. Presently the Division has about Rs 400 crores of order in hand to be executed over 3 years.  Due to the high technical standards and quality of work, the Division is being offered various contracts in the Mining Sector. IDLconsult is also operating large iron ore mines in Barbil region of Orissa.

Speciality Chemicals Division

The operations of Speciality Chemicals Division were started in June 06 after receipt of Environmental clearance.The operations have been streamlined for cardiovascular and antipsychotic drugs. Developmental work has been completed on three cephalosporin molecules and process development work has been completed on an antiepileptic drug. Sales from June to December 2006 were Rs. 17.66 crores. The turnover will be improving as more molecules are added to the product portfolio and customers approve samples submitted over the next two quarters.


IDL Pharma is initially focusing on overseas non-regulated markets and also in the process of filing registration dossiers in semi-regulated markets of Africa, parts of South East Asia and South America.  Registrations have been completed in Vietnam, Burundi and will be shortly completing formalities in Nigeria, Myanmar and Srilanka. In the meantime, has rolled out its first export order to Burundi, East Africa in December, 2006.  IDL Pharma has plans to enter domestic market shortly and to foray into the OTC segment initially.

Exports

Infrastructure & Property Development

Modifications based on the revised guidelines by the Government of Andhra Pradesh have been complied with and sanction is expected shortly for the Begumpet project at Hyderabad.The commercial building project will take about 18 months for completion.

The 100 acres Knowledge Park proposed at Hyderabad campus is awaiting approvals.However planning and detailing work is continuing with architects and consultants.

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:

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