Gulf Oil Q1 Turnover Rs 263 crore

Chennai: Gulf Oil Corporation Ltd., a Hinduja Group Company, has reported a marginal increase in income in first quarter.  Profit from operations increased by 6pc to Rs. 20.32 crore.  Profit after tax for Q1 was Rs 9.57 crore (Rs 10.07 crore) due to adverse foreign exchange fluctuation to the extent of Rs. 8.65 crore.  

The Lubricants Division has recorded positive growth in revenues and volumes in Q1 of Financial Year 2013-14 inspite of very tough market conditions prevailing currently. The net turnover of the Division for the quarter increased to Rs. 207 Crores as compared to Rs. 199 Crores in the corresponding quarter of the previous year i.e. a growth of 4% on QoQ basis.  Operational Profit before Interest and Tax for the quarter has also increased by 3.5% to Rs. 27.94 crores compared to Rs. 27.01 crores in the corresponding quarter of the previous year. The results reflect positively on Division’s focused approach towards market share gain especially keeping in view of the fact that Automobile industry is facing one of its toughest times of recent years. 

Prices of major raw materials have been on the increase during the quarter due to increase in crude prices globally and more due to the Rupee depreciation during the quarter. Fluctuations in the Exchange rates and the weakening of Rupee against US Dollar to unprecedented levels led to significant uncertainty in input costs and the margins are likely to remain under pressure going forward. The Lubes Division continues to put in measures to protect margins proactively, which is reflected in maintaining EBIT margins so far and profit increase in line with revenue growth.

Market demand conditions were flat to negative during this quarter. However the division was able to grow volumes with gains in market shares in the focus segments namely New Generation Diesel Engine Oils and Motorcycle Engine Oils. On the OEM related businesses growth was achieved.

The Division launched Gulf Formula GX - a high performance, fully synthetic passenger car motor oil, which is specially recommended for use in luxury cars and utility vehicles. The product’s superior formulation and performance benefits are proven by its endorsement by the Aston Martin Racing team, Gulf’s worldwide motorsport partner. The product is approved for use by the global auto majors such as BMW, Mercedes Benz and Volkswagen and is specially targeted at the growing luxury cars and utility vehicle segment in India. The oil also meets the requirements of other major automakers such as General Motors, Porsche and Renault.