Gulf Oil Corporation Ltd has planned to either divest stake in the explosives arm represented by IDL Explosives Ltd or bring in a strategic partner to run the business.
The board of directors today decided to divest stake to IDL comprising 50,000 shares of Rs 10 each fully paid-up at Rs 2,000 a share, to the highest bidder through a competitive bidding process. In addition, Gulf Oil holds 2,49,000 preference shares of Rs 24.90 crore, allotted by IDL according to the scheme of arrangement.
With this move, all assets and liabilities of IDL stand divested. Following the scheme of arrangement, the explosives business of the company, excluding detonators and explosive accessories in Hyderabad was demerged and transferred to wholly-owned subsidiary, IDL Explosives Ltd.
The company stated it recorded a net profit of Rs 13.09 crore for the third quarter ended December 31 just about retaining the profit of Rs 13.02 crore for the corresponding quarter last year. The exchange rate fluctuation clipped Rs 1.74 crore.
The sales income for the third quarter was up at Rs 270.95 crore (Rs 256.72 crore). The cumulative profit for nine months was up 16.6 per cent at Rs 41.17 crore against Rs 35.40 crore.
Mr S. Pramanik, Managing Director of Gulf Oil, said that the lubricants division continued its growth path in revenues and volumes but the temporary closure of mines in Orissa and Karnataka, due to regulatory issues, impacted the performance of the mining arm.
The company is finalising plans for real estate business in Bangalore and Hyderabad.