GULF OIL Turnover Increases by 25% in Q3

January 30th, 2008

Hyderabad, January 30th, 2008: GULF OIL Corporation, a Hinduja Group Company, has reported a 25% increase in income in Q3. Profit Before Tax for Q3 was Rs. 6.76 crores and Profit after tax was Rs. 6.54 crores ( Rs. 6.53 crores ).

For the nine months period ended on 31st December 2007, the turnover increased by 28% to Rs. 587 crores and Profit after Tax by 13% to Rs. 17.06 crores.

Division wise performance and highlights are as under:

Lubricants Division

The Lubricants Division posted a turnover of Rs. 108 crores during the third quarter of financial year 2007-08 as compared to Rs 96 crores in the corresponding quarter of last year. Overall contributions doubled over last year. This was achieved through growth in volumes of higher end products and lower cost of raw materials.

In the commercial vehicles segment the Division continued to achieve significant growth with higher market penetration of Ashok-Leyland Gulf co-branded lubricants led by India’s first long drain diesel engine oils with extended service period of 36000 Kms. Marketing initiatives taken to communicate the product USP of Gulf Pride 4T Plus with the theme of “ Double Magic ” was received by target segment with great enthusiasm resulting in sustained growth of this product.

Gulf brand promotion activities were stepped up with sponsorship of two wheeler racing events including National Dirt Track Championship. Economy standi-pack pouches were launched to cater to diesel segments in rural markets and the response has been very encouraging.  

Explosives Division

The Explosives Division engaged in the manufacture of full range of commercial explosives and blasting accessories for mining, infrastructure, space, defence and special applications, manufactures small and large diameter cartridge slurry explosives, pumpable emulsion explosives, detonators of various types, PETN, detonating fuse of varying core loads, special application initiating devices and Pyrotechnic products.

The turnover of the Division up to December’07 was Rs. 147.33 crores ( Rs. 120.14 crores ) representing double-digit growth of 23% due to increased orders from Coal India Limited ( CIL ), and improved demand from the non-coal sectors. The Division further strengthened the bulk operations in Rajasthan area after receiving a long term supply order from the Rajasthan State Mines & Minerals Limited.

The Division’s explosives and accessories are being exported to various countries over past few decades and export has achieved a growth of 25% up to end of third quarter. The Division has successfully executed a prestigious order using its electronic detonators for a controlled blasting project in Bhopal and Railway tunnel blasting project at Banihal near Jammu.

Mining and Infrastructure Division (IDLconsult Division)

The turnover of the Division in the third quarter ( Q3 ) was Rs. 37.24 crores as against  Rs. 13.91 crores in the Q3 last year and upto December 2007 was Rs. 101.83 crores as against Rs. 64.63 crores.

IDLconsult Division has made an excellent impact with their Mining services in the Mining Sector in India.  The execution of another two large Mining Contracts at Dudhichua at Singrauli and Singareni at Manuguru ( AP ) are progressing successfully.   The Division has made a capital investment of more than Rs 100 crores on acquisition of mining and construction equipment in the last one year.

Due to the high technical standards and quality of work, the Division is being offered various contracts in the mining and construction sectors.  Currently the order book position of the Division is valued at Rs 500 crores.

Speciality Chemicals Division

Turnover of the Division was Rs. 51.92 crores till December 2007. The performance of the Division has been affected from the past 4 months due to low demand for Cefixime, an anti infective. The Division has taken steps to broaden its market by exporting Cephalosporins and their intermediates to non-regulated markets.  In the meantime, one cardiovascular drug and two Cephalosporin molecules have been developed in the in-house laboratory of the Division. Both these molecules have been accepted by discerning customers.

Property Development

The Company has received necessary approval to build a state of the art, mixed use IT Park on its 40 acres plot situated at Yelahanka, Bangalore on the Bangalore-Hyderabad Highway.  The Park will provide Hotel/Service Apartments, Retails, Multiplexes and other facilities.  The project is strategically located 7 kms from the new Bangalore International Airport and will have supporting infrastructure for hospitality, shopping and entertainment in an international ambience.
 
The actual development of the Park will be jointly done by the Company and Aasia Properties Development Ltd. ( APDL ), a property arm of the Hinduja Group.

Regarding the Hyderabad property development, plans for a Knowledge City over 100 acres oriented towards the fast growing R&D segments has been conceptualised and awaiting approvals from the Government of Andhra Pradesh.

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

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