Gulf Oil H1 Turnover up 6%, PAT up 3.3 times

Gulf Oil Corporation, a Hinduja Group Company, has reported Profit Before Tax for Q2 was Rs.13.34 crores as against negative of  Rs.1.70 crores in the corresponding  quarter last year.  Profit after tax was Rs.12.28 crores ( Previous year Q2: Rs.0.98 crores negative).

For  H1, the Company turnover was Rs.509 cr (Previous year H1: Rs.481 cr ) and Profit after Tax improved significantly by 3.3 times to Rs.33.24 cr (Previous year: H1: Rs.7.67 crs)

Division wise performance and highlights considering the effect of the monsoons in the quarter on our 3 businesses are as under:

LUBRICANTS DIVISION:

During the quarter, the Lubricants Division achieved a gross turnover of Rs. 106.69 crores was marginally lower than the corresponding quarter of the previous year.  The gross contribution was, however higher due to lower interest costs and reduced foreign exchange losses.

The overall economic scenario in the recent months has improved, however the commercial vehicle sector, where Gulf Lubricants have a stronger presence, is picking up at a slower pace. The drop in revenue was mainly due to this impact.

The Division has retained it’s share in the marketplace and improved sales in segments like PCMO – where a slew of new products have been launched. The newly launched Gulf Max range of car lubricants for passenger cars, which have been introduced from Gulf Oil’s international range of products, has received an encouraging response from the market. The USP of this range - MX4 technology that delivers superior benefits to the consumers has positively impacted the acceptance of these new products amongst users & influencers. The division continued its focus on the Bazaar market by launching customised promotions, special product-packs catering to the agricultural segment, adding new fleet customers & focussing on promoting sales of new products/skus.

Further, by continuing the customer and trade campaigns in 2-wheeler segment, the 4T sales volume grew well during the quarter in line with the growth of 2-wheeler industry. The Division is continuing sponsorship of Motor sports in 2 Wheelers through National Dirt track championship to promote Brand in 2W segment.

EXPLOSIVES DIVISION

The Explosives Division during the quarter, achieved revenue of Rs. 70.55 crores – a growth of 20% over corresponding quarter of last year.  Significant contributions were from higher sales to Coal India Limited and continued focus on Value added products and International Markets.  Milder monsoon this year has also contributed to higher use of explosives.

On a half year level the Revenue has grown 23% YOY to Rs. 138.20 crores.

MINING AND INFRASTRUCTURE DIVISION (IDLconsult DIVISION)

The Mining and Infrastructure Division achieved revenue of Rs. 51.46 crores growth of 7% over corresponding quarter of last year supported by expansion of activities in Iron ore mining areas.

On a half year level the Revenue has grown 11.5 % YOY to Rs. 105.66 Crores.

The Division has a Order book of about Rs. 450 Crores and is in the final stages of discussion for several new projects.

PROPERTY DEVELOPMENT

Development work on the Hyderabad property has commenced based on a major 100 ft. road being developed by GHMC through the property. This road would shorten the travel time between Kukatpally and Hi-tech City considerably.