Gulf Oil Corp. reports increased turnover in first quarter

Gulf Oil Corporation Limited, a Hinduja Group Company, reported an increase in turnover by 14% for the first quarter. Profit from operations was Rs14.57 crore (US$2.7 million), up by 3% and net profit was Rs15.02 (US$2.8 million) lower than the corresponding quarter of the previous year.
The lubricants division achieved a 22% increase in gross turnover for the quarter, amounting to Rs 250 crore (US$47.1 million), compared to Rs206 crore (US$38.8 million) in the corresponding quarter of the previous year.
Operational profit before interest and tax for the quarter also increased by 10% to Rs22 crore (US$4.1 million), compared to Rs20 crore (US$3.8 million) in the corresponding quarter of the previous year.
This positive growth in volumes and revenue were achieved in spite of subdued market conditions, which caused lower automotive, industrial and OEM demand in the quarter. Profitability levels were maintained in spite of the significant depreciation of the rupee against the dollar, which led to higher base oils and additives costs in the quarter. The division was able to spur increases for automotive products prices in the open market segment towards the end of the quarter. The lubes division, on the other hand, continued to successfully achieve growth rates in volumes ahead of the industry’s leading competitors. However, sales of the company’s OEM customers decreased due to lower than expected production.
The division faced stiff price competition from other leading players in the motorcycle and diesel engine oil segments. To counter lower prices and promotions targeted at the company’s products, the division initiated a number of market strategies and launched a new range of products, the Gulf Superfleet Turbo for commercial vehicles from Tata, Eicher and other commercial vehicle manufacturers for the open market. (August 3, 2012)