GULF OIL Turnover Increases by 24% and profit by 9% for F 2008

May 26th, 2008

Hyderabad, May 26, 2008: GULF OIL Corporation, a Hinduja Group Company, has reported a 18% increase in net sales in Q4. Profit Before Tax for Q4 was Rs. 8.18 crores as against Rs. 14.62 crores in the same quarter last year. Profit After Tax was Rs. 8.06 crores ( Rs. 7.85 crores ) an increase of 3%.

For the year ended on 31st March 2008, the turnover increased by 24% to Rs. 747.16 crores and Profit after Tax by 9% to Rs. 25.13 crores. The Board has recommended a Dividend of Rs.1.50 per share.

Total exports were Rs. 48 crores, achieving a growth of 14% over last year.

Division wise performance and highlights are as under:

Lubricants Division

The Lubricants Division posted a revenue of Rs 370 Crores for the financial year 2007-08 as compared to Rs 356 Crores in the previous year. There has been encouraging volume growth in key domestic segments, while export sales were affected due to lower orders on account of rupee appreciation.

The Division continued its focus in growing the top-end Diesel Engine Oils and creating a stronghold in the Motorcycle Oil segments to realise higher volumes and achieve significant growth in these segments. To further consolidate acceptance of the range of ‘Ashok Leyland – Gulf Oil co-branded oils a press campaign was released for Gulf Super Fleet LE Max - India’s First Long Drain Engine Oil with a drain interval of 36,000
km.

In the motorcycle segment a new product Gulf Pride 4T Plus – 10W 30 was launched in Q4, backed by a TV campaign aimed at creating brand awareness for the new product and communicating the ‘Pentatec’ feature advantage to the target audience. This product offers the extra benefits of fuel saving and longer drain period as compared to competing products.

The ancillary product portfolio also showed good growth with Gulf Filters product line specifically recording excellent growth supported by better distribution & more customer acceptance.

Explosives Division

The total revenue of the Division for the year was Rs. 189 crores (Rs. 149 crores) representing growth of 27% in spite of the severe shortage of Ammonium Nitrate, a key raw material. Exports at Rs. 26.50 recorded a growth of 44% over the previous year.

The Explosives Division along with its R&D has launched two versions of the electronic detonator ‘e-DET’ and field trials of both have been successfully completed and introduced ‘e-Det’ in the PSUs Singareni Collieries, Bharat Coking Coal Limited, besides several private sector organization involved in coal and in limestone mines attached to cement plants. The e-Dets have been highly appreciated in Rail Tunnel projects and for carrying out cautious blasting for a major infrastructure project in the heart of Bhopal city.

The Metal Cladding group posted a turnover of Rs.8.02 crores (Rs.7.07 crores) representing a growth of 13%. While the turnover of the Special Products Group, engaged in the manufacture of special purpose products for space and defence applications, increased to Rs. 1.22 crores.

Mining and Infrastructure Division

The service income of the Division increased by 119% in the year to Rs. 141 crores as against Rs. 64 crores in the previous year.

The Division has made an excellent impact with their Mining services in the Mining Sector in India. It has started the Overburden removal contract at Nigahi Project under Northern Coalfields Limited and this is the largest contract in the Mining sector till date in India. The execution of another two large Mining Contracts at Dudhichua and Manuguru at Singareni is going on successfully. The Division has procured more than Rs 100 crores worth of mining and construction equipment in the last one year.

IDLconsult is progressing well in the iron ore mining sector in Orissa and Karnataka. The contract in the iron ore mine of NMDC at Donimalai NMDC is being carried out successfully. In Orissa, the Division is operating several iron ore mines at Barbil region along with iron ore screening and crushing of minerals.

Besides total mining services, the Division has undertaken in the fast growing infrastructure sector based on the successful execution of contracts in the Delhi Metro Rail Project, Structural works at Jamnagar under Reliance and at Outer Ring Road in Hyderabad. The Division is working in the implementation of structural works at the Alumina plant of the Aditya Birla Group in Orissa.

With the volumes handled, the Division has grown as the largest mining service provider in the country in a very short period. This was made possible by the excellent mine planning, control and quality execution of all the works. The Division has Rs 450 crores of order booked as on April 1, 2008.

These orders are to be executed in the next two to three years period

Speciality Chemicals Division

The Division started commercial operation from June 2006 and has been able to achieve a turnover of Rs. 49 crores an increase of 47% over the previous year.

The Division obtained Certificate of Suitability ( COS ) for a cardiovascular drug, Enalapril Maleate from EDQM. Export orders from Europe have been started on the basis of the COS.

The Formulations Group added additional products to its range taking the total products to twenty. This range is expected to double in the next quarter.

The Division stabilized the production of Cephalosporins and added another molecule, Cefdinir to its range. The Division exported an advanced intermediate for the manufacture of Cefixime to China, for the first time in its operations. It is in discussion with some Middle East countries for the export of this product.

The Division has applied for Certificate of Suitability ( COS ) for a Cephalosporin antibiotic. This is expected to generate export potential for the product. .

Property Development

Based on the approvals received for a mixed use IT Park on 40 acres of the Company’s property at Yelahanka in Bangalore, preparatory work prior to construction activity is in final stages. Construction activity is planned to start in about 2 months through the selected Developer.

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.

In view of the developments in these 2 large properties, the Company has revalued the 2 properties to Rs. 1839 crores in the books to reflect the current value of the assets for development.

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

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