Gulf Oil Corporation Limited has posted a lower net of Rs 15.02 crore for the first quarter ended June 30, as against Rs 19.07 crore for the corresponding quarter last year. The profitability was lower due to exceptional item taking away Rs. 5.04 crore.

However, driven by good performance by the lubricants division, the company turnover was up 14 per cent at Rs 247.88 crore for the first quarter as against Rs 221.56 crore for the corresponding quarter last year.

According to S. Pramanik, Managing Director of Gulf Oil, the lubricants division achieved a 22 per cent growth at Rs 250 crore over Rs 206 crore for the corresponding quarter last year. The profit was up 10 per cent at Rs 22 crore (Rs 20 crore).

The growth was due to volumes in spite of subdued market conditions. The profitability was maintained in spite of significant depreciation of the rupee against the dollar which led to cost increase of base oils and additives in the quarter.

Explosives division

The explosives division, handling detonators after demerger of the packaged and bulk explosives business, achieved lower sales of Rs 20 crore as against Rs 24 crore for the corresponding quarter last year.

Mining division

The performance of the mining division suffered due to slowdown and closure of major iron ore and manganese mine in Orissa on environmental issues.

With regard to property division, the company has signed up with Hinduja Estates for a major project in Hyderabad. It had already entered into a pact with Hinduja Realty for a project in Bangalore.

Gulf oil shares closed the day trade down 3 per cent at Rs 88.65.

>rishikumar.vundi@thehindu.co.in

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