Gulf Oil Corporation has decided to demerge the Lubricants business into a separate listed company.
A detailed scheme of arrangement will be considered by the board in its next meeting. This move is pursuant to the recommendation of the Committee of Directors.
In view of the diverse nature of the company business, to de-risk the business, the management is seeking to restructure operations and accordingly decided to demerge lubricants division, its biggest contributor to revenue now.
Lubes business contributed Rs 235 crore in revenue during last quarter.
Two other divisions, explosives and mining, have lower contribution. The property division, with projects in Bangalore and Hyderabad, is now in the process of taking shape.
The company board, which met on Saturday and took on record the annual results, has recommended payment of dividend of Rs 2.20 for a share at 110 per cent for 2012-13, according to a statement from S. Pramanik, Managing Director.
Posts Rs 17.28-cr Net
It posted a lower net profit of Rs 17.28 crore for the fourth quarter ended March 31, as against Rs 20.93 crore for the corresponding quarter last year.
The income for the fourth quarter was Rs 265.30 crore as against Rs 249.18 crore.
For the financial year ended March 31, the company closed with a profit of Rs 47.53 crore (Rs 50.10 crore previous year) and income of Rs 1,264.79 crore (Rs 1,236.47 crore) on a consolidated basis.
Through its subsidiary HGCL Holdings Ltd, UK, Gulf Oil had acquired Houghton International Inc in the US. HGHL has taken a loan of $ 360 million from a bank to part finance the acquisition.
On Monday, Gulf Oil shares closed at Rs 66.85, up 2.61 per cent, on the BSE.
rishikumar.vundi@thehindu.co.in