Press Release                                                                 

 

 

   GULF OIL Turnover Increases by 15%  in Q3

 

Highlights for Cumulative Q3

 

-         Total Income higher by 26% to Rs. 748 crores ( Rs.  593 crores )

 

-         Profit affected due to Exchange loss of Rs. 17.29 crores.  

 

 

Mumbai, January 27, 2009: GULF OIL Corporation, a Hinduja Group Company, has reported a 18% increase in income in Q3.  Profit After Tax for Q3 was negative Rs. 5.58 crores on account of provision for exchange fluctuation of Rs. 6.03 crores and interest charges.

 

For the nine months period ended on 31st December 2008, the turnover increased by 26% to Rs. 748 crores and Profit after Tax was Rs. 1.78 crores after provision for exchange fluctuation of Rs. 17.29 crores.

 

Division wise performance and highlights are as under:

 

LUBRICANTS  DIVISION

  

During the Q3, the Lubricants Division achieved a gross turnover of Rs. 104 crores as compared to Rs. 108 Crores in the corresponding quarter of the previous year.  For the 9 months ended 31st December’08, gross turnover was Rs. 364 crores compared to Rs. 285 Crores in corresponding 9 months of the previous year.

 

The automotive sector witnessed a downturn during the quarter, in addition lower movement of commercial vehicles resulted in reduced demand for lubricants. This impacted volume across the industry and the Division’s volumes degrew by 13% in automotive segment vis-ŕ-vis last year. The Division focused on promoting new products Gulf Cargo Power and Gulf Super Duty VLE and getting into new segments like Diesel Generator Sets, largely used by the telecom sector with a new range of lubricants, co-branded with Ashok Leyland.

 

The Division continued its drive to increase sales and market share in the bazaar market. The division launched new initiatives to strengthen it’s presence in the transport markets across key locations with campaigns to generate product awareness and usage.

 

The annual event of Gulf Cup – Dirt Track Championship was held across locations with the finals at Nashik. These events were covered across media channels besides attracting large audiences at track sides.

 

EXPLOSIVES   DIVISION

 

Explosives Division reported sales of Rs. 65 Crores. ( Rs. 45 Crores last
year ). This robust 44% sales growth was mainly on account of growth in both Domestic and Export sectors.

 
The Division received a new Contract from Coal India for supply of explosives to their subsidiaries with effect from 1st December, 2008.  The new order has a Price Variance mechanism linked to raw material prices which would help stabilize margins in subsequent quarters.


Exports were strengthened with new orders from South East Asia, Eastern
Europe and Africa.  The Division is progressing well on its goal of achieving 20% of turnover from Exports.

 

MINING  AND  INFRASTRUCTURE  DIVISION (IDLconsult DIVISION)

 

Consult Division reported a 37% growth in revenue - Rs. 51 Crores.                            ( Rs. 37 Cr last year ), based on activity in long term contracts for service in coal and iron ore sectors.


This quarter includes activities from the newly started Nigahi mine of NCL
(a subsidiary of Coal India Ltd) in addition to the Dudhichua mine in the
same region.  The earlier project undertaken at Manuguru of Singareni
Collieries Co. Ltd., in Andhra Pradesh was successfully completed during the quarter.

 

The Division’s operation in iron ore mines at Barbil region and Karnataka region was continuing but at a slower pace. The Division also started its first Manganese ore mining work of the Adhunik Group in the Barbil region after completed the mine development work.

 

The mine infrastructure work at Utkal Alumina Ltd is progressing well after a
good start in the last quarter.


The current order book stands at Rs. 450 Crores for the Division.

 

SPECIALITY  CHEMICALS  DIVISION

 

The market conditions in APIs were difficult due to the mismatch in the cost of raw material versus finished product price.  Operations were restricted and were focused on profitable product lines.  Sales stood at Rs. 7 Crores ( Rs. 11 Crores last year ).

 

The Division’s business is under restructuring.


PROPERTY  DEVELOPMENT

 

The Company has received necessary approval from the Karnataka Government for setting up of an IT SEZ on 30 acres 40 acres plot situated at Yelahanka, Bangalore on the Bangalore-Hyderabad Highway.  The project is strategically located 14 kms from the new Bangalore International Airport and will have supporting infrastructure for hospitality, shopping and entertainment in an international ambience.

 

Regarding the property development plans for a Knowledge City on 100 acres at Hyderabad, the Company is in the process of obtaining approvals from the Government of Andhra Pradesh.

 

 

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

 

 

Mr. Aalok Shrivastava, General Manager, Gulf Oil Corporation Limited, Hyderabad at 040-23801345

 

Mr. R. Varadarajan, Vice President, Lubricants Division, GULF OIL Corporation Ltd., at 022-28248240, 56989900, 9819338850

 

Mr. Jayaram Ramanathan, Vice President (Corporate Communications & PR), Hinduja Group at 022-28248359 – Extn. 232, Mobile: 9867212997

 

Ms.Devdatta Mulchandani – Clea Public Relations, 9444076909