Gulf Oil Corporation Ltd. of the Hinduja Group has reported a turnover of Rs. 1,097 crores for the year ended March 31, 2014, against Rs. 1,081 crores the previous year. The net profit was Rs. 58.34 crores, an increase of 10 per cent over the previous year. The turnover for Q4 was Rs. 312 crores (Rs. 303 crores) and net profit Rs. 18.35 crores.
The company paid in April an interim dividend of Rs. 2.50 per share, i.e., 125 per cent (110 per cent plus special dividend of 15 per cent), a payout of 50 per cent. The Board has recommended that the interim dividend be treated as final dividend for 2013-14.
Demand for lubricants continued to be subdued in the fourth quarter of the year, impacted by lower goods movement, slowdown in mining and infrastructure and poor industrial growth. Despite these challenges, the Lubricants Division grew its revenues in the quarter. The net sales turnover increased to Rs. 255 crores as compared to Rs. 235 crores in the corresponding period last year, achieving a positive growth of eight per cent QoQ basis.
Operational profit before interest and tax for the quarter moved up by 8.4 per cent to Rs. 28.63 crores (Rs. 26.41 crores) mainly on account of improvement in the product mix and sales realisations by the Division. Special promotional initiatives to gain market share in the diesel engine segment with trade retailer meets and retailer promotions were executed across key markets.
For the year as well, the Division was able to maintain its operational profit before interest and tax at Rs. 105.46 crores (Rs. 105.68 crores), in spite of the prevailing economic environment, negative growth in the CV segment and slowdown in the car and two-wheeler segments.
The Lubricants Division reported higher market share with positive volume growth in the motorcycle segment and acquisition of new B2B customers across direct industries. Increase in distribution reach was achieved during the year with focused expansion initiatives.