Gulf Oil Corporation Ltd has posted a net profit of Rs 12.38 crore for the second quarter ended September 30, 2013, a growth of 17 per cent over Rs 10.59 crore it logged in the corresponding quarter last year.
The Hyderabad-based Hinduja Group lubricants and explosives company registered a small drop in its income from operations at Rs 256.82 crore for the September quarter versus Rs 259.75 crore in the corresponding period last year.
The lubricants division has managed to maintain its revenues and profits in spite of a challenging environment and difficult demand pattern faced in the automobile and related industries.
The company stated that the prices of raw materials continued to rise significantly during the second quarter on account of increase in crude prices globally and rupee depreciation during the quarter.
Demerger likely
As part of restructuring, the company expects to demerge and list the lubricant division — Gulf Oil Lubricants Ltd.
Consequently, one fully paid up equity share of face value Rs 2 in the company and Gulf oil Lubricants India Ltd each will be allotted for every two shares of face value of Rs 2 held in the company.
Mining division turnover
In spite of the mining scenario continuing to be affected by the policy and related issues, the division was able to maintain its second quarter turnover of Rs 18 crore.
However, the mining infrastructure division continued to reduce cost and limit activities due to major projects of the company being under suspension for want of various Government/regulatory clearances in the non-coal sectors.
Property division
Referring to the property division, the company stated that the work on the Rs 1,800-crore project ‘Écoplis’ at Yelahanka in Bangalore under development with Hinduja Realty is progressing as per plan.
However, the Hyderabad realty project remains in the planning stage as uncertainty over the bifurcation of Andhra Pradesh is delaying the finalisation of plans.
Gulf Oil shares were quoting at Rs 78.40, down 1.26 per cent on the BSE.