The Hindu Business Line : Gulf Oil net, income rise

GULF Oil Corporation, a Hinduja Group Company, has reported a 50 per cent increase in its net profit for the year ended March 2004 to Rs 22.91 crore as against Rs 15.32 crore in the corresponding period last year.

The total turnover (net of excise) for the year was Rs 372 crore as compared to Rs 359 crore in the previous year, thus showing an increase of 3.6 per cent. Gulf Oil Corporation's operating profit for the year ended March 2004 rose 147 per cent to Rs.27.98 crore as compared to Rs 11.32 crore in the same period last year. The company declared a dividend of 60 per cent (Rs 6 per share).

The company's lubricant's division turned out a strong performance despite steep increase in the prices of base oils, which impacted the entire lubricating oil industry. The division posted a turnover of Rs 208 crore representing a growth of 32 per cent. The company has initiated a project for expansion of its filling capacity by 50 per cent at its Silvassa plant with a capital expenditure of Rs 5 crore by July 2004.

The explosives division's performance was affected by the suspension of production activities at its largest plant located at Hyderabad for over two months following an accident in one of the detonating fuse plants at the end of November 2003. Normal production was re-established around mid-March 2004. As a result, the division's turnover was Rs.136 crore as against Rs165 crore in the previous year.