Hinduja Group company, Gulf Oil Corporation has decided, in principle, to de-merge its lubricants division into a separate listed entity.

The decision comes in the light of a recommendation made by a committee of directors constituted to look into various options for de-risking and restructuring the operations. The detailed scheme of de-merger would be approved in the next board meeting, Gulf Oil informed the BSE on Monday.

The company’s board that met on Saturday recommended a dividend of Rs. 2.20 a share at 110 per cent for the financial year 2012-13, subject to approval of shareholders at its annual general meeting.

Gulf Oil posted net profit of Rs. 17.28 crore for the quarter ended March 31, 2013, as against Rs. 20.93 crore of the corresponding period in the previous fiscal. Income during the quarter was Rs. 265.3 crore compared to Rs. 249.18 crore in the year-ago period.

The company registered a net profit of Rs. 47.53 crore for the full year compared to Rs. 50.1 crore in the previous fiscal, while the income was Rs. 1,264.7 (Rs. 1,236.47 crore) on a consolidated basis.

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