Gulf Oil Corporation Ltd has posted a lower net profit of Rs 9.57 crore in the first quarter ended June 30, 2013, against Rs 10.07 crore in the corresponding quarter last year.
During the first quarter, the company had to face adverse impact of foreign exchange of Rs 8.65 crore.
The company registered gross sales of Rs 263.34 crore during the first quarter against Rs 260.10 crore in the corresponding period last year.
Lubricants division recorded a turnover of Rs 207 crore, up 4 per cent over Rs 199 crore, in spite of tough market conditions. Its performance was aided by gains in market share in spite of tough automotive industry demand.
Prices of major raw materials have been increasing during the quarter due to increase in crude prices globally.
Fluctuation in exchange rate and rupee depreciation have resulted in uncertainty of input costs. This has resulted in pressure on margins, Gulf Oil Managing Director S. Pramanik said in a statement.
Explosives division, a manufacturer of detonators and accessories, achieved lower sales of Rs 17 crore against Rs 21 crore.
During the quarter, the company has also settled a new wage structure and expects better productivity. Mining division too reported a lower business at Rs 3 crore down from Rs 9 crore,
Meanwhile, Gulf Oil board has approved the demerger of the lubricants division and transfer of Hinduja Infrastructure Ltd, a wholly owned subsidiary. With this move, the appointed date for new entities will be effective April 1, 2014. The share swap ratio has also been approved.
The company has also concluded dilution of 90 per cent stake in GHGL London limited, UK.
rishikumar.vundi@thehindu.co.in