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NT Bureau
Chennai, May 27:

        Gulf Oil Corporation, a Hinduja group company, has reported a 30 per cent increase in income while profit stood at Rs 7.90 crore for the fourth quarter as against Rs 4.03 crore last year.

        The company's net profit was Rs 23.01 crore giving an EPS of Rs 16.58 (Rs 16.43 previous year ). The board has recommended a dividend of Rs 7.50 per share (75 per cent) as against 70 per cent for the previous year.

        The total exports were Rs 38.91 crore, achieving a growth of 22 per cent over last year. The lubricants business for the financial year grew by 38 per cent from a turnover of Rs 257 crore to Rs 355 crore for the current year. The division had embarked on the twin strategies of growing its top-end diesel engine oils and obtaining a strong foothold in the motorcycle oils segment. The new products, such as the Ashok Leyland-Gulf Oil co-branded oils and Gulf Pride 4T Plus found excellent response from the customers.

        Interestinly, the division undertook new initiatives in the retail channel, resulting in substantial expansion of its retail network. In order to further strengthen the Gulf brand, the division initiated an intensive advertising campaign on television during the ICC World Cup.

        The country's first long drain diesel engine oil launched jointly by Ashok Leyland and Gulf Oil with a drain interval of 36000 Kms achieved excellent growth during the quarter. This trend-setting initiative is expected to produce significant savings in vehicle operating costs and also contribute to environment protection by way of reducing the generation of used oils.

        The demand for car care products introduced 2 years ago continued to grow and also found shelf space in conventional retail outlets and shifting malls. The sale of car care products was also aided by the agreement with Indian Oil Corporation Limited for marketing of these products through their retail outlets.

        And the explosives division faced an intensely competitive market during the year. Inspite of this, the business grew by 13 per cent from Rs 129 crore last year to Rs 146 crore. The division was able to counter the unremunerative prices from a major customer in the coal industry by shifting its marketing emphasis to non-coal products and customers. The loss in margin on such sales was off set to some extent by this shift in focus to the non-coal segments. The introduction of electronic detonators and emulsion boosters also helped in reducing the bottom-line impacts.

        The boom in the mining industry has created a demand for the Division's products for private mining, besides infrastructure activities. The trade market, which was dormant for the last 3 years, has picked up activity and there is a spurt in demand. Prices in the trade market also firmed up towards the year-end.

        It is interesting to note that the division had a good export year with growth in explosives and accessories recording an increase of 19 per cent over the previous year. The other groups in the division such as metal clading and special products for defence and space applications closed the year with increase in business of 17 per cent and 72 per cent respectively.