Author Archives: lankaioctest

Lanka IOC opens 100th SERVO Shop in Mawanella

 

servo.2Lanka IOC PLC recently opened their 100th ‘SERVO Shop’ in Mawanella. In 2013, LIOC put this innovative idea forward to further increase its stake in the lubricant market and re-conceptualized its retail channel with a unique new concept to showcase LIOC’s  range of Servo lubricants Sri Lanka.

Starting from left, Kegalle Distributor, Mediwatte; Lubes Executive- Retail, Rasheel Hassen; Lubes Marketing and Planning Senior Vice President, Soumen Ganguly; Lanka Servo Shop Dealer, Najimudeen and Kandy Region Sales Supervisor, Sanjaya are present in this picture.

 

Lanka IOC profits surge 65%

Lanka IOC PLC saw net earnings surge 65% to Rs 4.81 billion for the year ended 31 March 2014, up from Rs 2.91 billion a year ago, financial results filed with the stock exchange showed.
 
Sales grew 8.9% to Rs 81.8 billion and gross profit grew 54.22% to Rs 8.31 billion.
Selling and distribution expenses amounted to Rs 1.74 billion, up from Rs 1.67 billion a year ago, administration expenses fell to Rs 875.3 million, down from Rs 889.1 million the previous year. Finance income grew to Rs 301 million, up from Rs 267 million a year ago and finance costs grew to Rs 258.5 million, up from Rs 138.8 million the previous year.
 
The company’s assets grew 9.24% to Rs 26.98 billion.
Export sales fell to Rs 12.84 billion during the year ended 31 March 2014, down from Rs 18.12 billion a year ago.

From the Ceylon Today.

Lanka IOC conducts Fuel Conservation Awareness Programme for schoolchildren

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In view of the need to reduce the ever increasing gap between demand and supply of energy, Lanka IOC PLC as part of their CSR initiative conducted a Fuel Conservation Awareness Program amongst school students who are the future leaders of Sri Lanka. The objective of this initiative was to educate and create awareness among students of Grades 7 to 12 on the need for energy conservation by highlighting the importance of energy conservation and its use in our daily life, its scarcity and its impact on sustainability of global eco-system.

This initiative of Lanka IOC PLC provided students an opportunity to showcase their creative and critical thinking skills through an essay and arts competition amongst students from invited schools in Colombo. The art competition was open to students from Grades 7-9 and the essay competition was conducted amongst Grades 10-12at the Western Province Aesthetic Resort recently.

Commenting on this initiative Subodh Dakwale, Managing Director of Lanka IOC PLC said that corporate social responsibility (CSR) has been the cornerstone of success right from the inception of our company which is enshrined in the Mission Statement “to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience” which succinctly portrays the commitment of LIOC.

Elaborating further Dakwale said ‘We at Lanka IOC have defined a set of core values for ourselves – Care, Innovation, Passion and Trust to guide us in all we do. We therefore, are aware of the need to work beyond financial considerations and put in that little extra to ensure that we are perceived not just as corporate behemoths that exist for profits, but as a wholesome entity created for the good of the society and for improving the quality of life of the communities we serve.’

The top three winners of the essay and art competition were awarded certificates and gift vouchers. A large number of students, parents, teachers and officials from Lanka IOC including Saurav Mitra, Senior Vice President (Finance), Rajanie Balakrishnan, Company Secretary were present at the awards ceremony. Speaking on the occasion Dhananjay Srivastava, Senior Vice President, Retail sales and HR stated that Lanka IOC was indeed delighted with the response and enthusiasm of both the students and teachers and thanked every one of them including the parents who sacrificed a weekend to make this event a great success.”

Article courtesy : Daily News

Lanka IOC Launches program to provide free English education

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Through an ongoing initiative in teaching English to children from under-privileged communities, Lanka IOC, Faiszer Mustapha Foundation and Cosmopolitan Learning Academy launched ‘English for Young Learners’ six month programme for 1500 students from 15 chosen Dhamma or Sunday Schools from the Colombo District under the patronage of President Mahinda Rajapaksa.

Following the success of the programme last year at Trincomalee, Minister Faiszer Mustapha, who instigated the Foundation with the sole focus of alleviating the social setback that todays’ students tend to face when learning and conversing in English.

Lanka IOC had undertaken this project as their Corporate Social Responsibility (CSR) and have realized that projects of this caliber are focused towards providing education to a child from a poor background would help in the child’s upliftment for a better future.

“Lanka IOC and the Faiszer Mustapha Foundation had been working together on bringing about this concept for Dhamma Schools in the Colombo District.

Today, with the ongoing global changes and advancements, this strategy for companies to embrace CSR is meaningful and through this concept, we will work to provide youth with the chance to be able to learn English and benefit from it,” Chairman, Faiszer Mustapha Foundation, Minister Faiszer Mustapha said.

After the programme in Trincomalee, the Foundation noticed that this change should be brought upon to the Colombo District as well, especially after ruling out the plight of English language results from lesser known schools in the district.

To bridge this gap between learning the language as a subject at school, needed to be filled.

All four skills; reading, writing, speaking and listening would be taught during the six months. “This is not just an average English teaching programme. The focus would be laid out on English language to be taught as a language. This is an unconventional, well-programmed study scheme conducted by the Cosmopolitan Learning Centre.

“We had already been in Jaffna, in collaboration with Lanka IOC. This concept includes quite an interactive approach to teaching and we do not utilize the conservative way of school teaching. The concept is Cosmopolitans own developed, tried and tested teaching method. We engage in special training for our teachers I the right teaching technique to be used for this programme,” Thilak Silva of Cosmopolitan Learning Centre said.

35 teachers from the Colombo District have already been assigned for this programme. Whilst learning at Dhamma Schools, the programme had been set up to be followed as an additional class. “My aim is to diminish that gap seen between the English and the Non-English classes in schools around the country. English is a very much needed tool in todays’ growing world,” Minister Mustapha acknowledged.

Students will be allocated to segmented classes after undergoing a test that would mark them depending on their English knowledge and ability.

IOC sees this opportunity on a long term outlook and pledged their continuous support in bringing change to help in the education of children in the country.

President Mahinda Rajapaksa was the Chief Guest at the event.

Lanka IOC Q3 net up 72.5 pct

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COLOMBO, (Reuters) – Group results for Lanka IOC PLC, the Sri Lankan arm of Indian Oil Corp, for the three months ended Dec. 31, released recently. (in millions of rupees unless otherwise stated):

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NOTE – Results are provisional and unaudited.

  • Foreign investors and funds hold 77 percent of the tota issued shares in the company, which has a market cap of 20.24 billion Sri Lankan rupees ($154.80 million) and accounts for 0.79 percent of the total market capitalisation of the stock exchange, latest bourse data showed.
  • The parent, Indian Oil Corp, holds 75.12 percent of the shares in its Sri Lankan arm.
  • Shares in Lanka IOC have gained 35.1 percent in the December quarter and 19.3 percent so far this year.

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair for Reuters)

Complete results can be downloaded from our Investor Section.

Sri Lanka’s Indian oil unit records profits

A substantial decrease in finance costs enabled Lanka IOC PLC (LIOC) to post a net profit of Rs.805.9 million for the three months ended March 31, 2013 (4Q12) as against Rs.42.6 million during the corresponding period of the previous year, interim financials released to the Colombo Stock Exchange revealed.

Accordingly finance costs fell from Rs.870.8 million during the final quarter of 2012 to Rs.28 million during the quarter under review.

A further increase in finance income, which was Rs.106.4 million during the period in consideration in comparison to Rs.25.3 million during 4Q12, also contributed to the growth of the company’s bottom line.

Revenue for the quarter fell to Rs.19.2 billion from Rs.19.4 billion a year earlier and cost of sales fell to Rs.17.7 billion from Rs.17.8 billion and gross profits fell to Rs.1.44 billion from Rs.1.6 billion. Gross profits fell to Rs.790 million from Rs.895 million.

Also LIOC’s income tax expenses increased during the quarter under review to Rs.63.2 million as against Rs.7.8 million during the corresponding period of 2012.

Earnings per share (EPS) for the quarter ended March 31, 2013 stood at Rs.1.51 as opposed to 8 cents during the quarter ended March 31, 2012.

Meanwhile for the year ended March 31, 2013 the company recorded a net profit of Rs.2.9 billion as against Rs.905.9 million during the previous year.

During the year under review too finance costs fell from Rs.1.1 billion to Rs.138.8 million while finance income too increased from 78 million to Rs.267 million.

LIOC is a unit of India’s state controlled oil major, Indian oil Company

Signing of Agreement with Lanka Ashok Leyland for Servo Lube Distribution in Sri Lanka

Lanka IOC has achieved yet another milestone in Lube marketing by inking an agreement with M/s Lanka Ashok Leyland PLC (LAL) on 01.02.2012 for supply of lubricants to transport sector in Sri Lanka. LAL is one of the oldest Indian joint venture company established in 1982 between Govt of Sri Lanka and Ashok Leyland Limited, India to assemble Ashok Leyland vehicles in Sri Lanka. Presently over 20,000 nos Ashok Leyland vehicles are in operation in Sri Lanka. LAL is a market leader with 86% share in passenger vehicles segment and 54% share in heavy goods commercial vehicle segment in Sri Lanka. They have recently supplied 300 nos. buses to Sri Lanka Transport Board and is in the process of supplying additional 500 nos buses on revenue sharing basis. The maintenance of buses are taken care of by LAL and there lies the opportunity for introducing Servo Grades to the buses of Sri Lanka Transport Board who are presently using other brands.

Lanka IOC has appointed LAL as the Lube Distributor for transport sector in Sri Lanka to penetrate the business of Sri Lanka Transport Board and other major fleet operators who are depending on LAL for their spare parts/services.  The agreement signing was held at Lanka IOC office at Colombo on 01.02.2012.

Mr. K R Suresh Kumar, Managing Director/Lanka IOC and Mr. Umesh Gautam, CEO, Lanka Ashok Leyland PLC have signed the agreement in the presence of Mr. Sudhir Bhargava, Additional Secretary MOP&NG ,Govt of India  Mr. M. Nene, Chairman, Lanka IOC PLC & Director(M),IOC  and Mr. Manish, Counsellor(Economic & Commercial), High Commission of India, Colombo.

Lanka IOC profits surge

Lanka IOC PLC had a Rs 2.83 billion net profit for the six months ended 30 September 2013, up from Rs 1.37 billion a year ago, interim financial results filed with the stock exchange showed.

Revenue for the six-month period increased to Rs 39.23 billion, up from
Rs 38.86 billion a year ago.Distribution costs fell to Rs 855.75 million, down from Rs 889.24 million a year ago.

Finance income grew to Rs 100.98 million, down from Rs 51.3 million and finance costs increased to Rs 309.49 million, up from Rs 155.84 million a year ago. Basic earnings-per-share amounted to Rs 5.32, up from Rs 2.58 a year ago

Lanka IOC unveils a range of lubricants with synthetic chemistry

Lanka IOC PLC, unveiled a range of new age lubricants in the presence of a large gathering of customers from the automobile industry, OEM representatives, trade partners and distributors at a colourful ceremony at the ‘Atrium’ of Cinnamon Grand Hotel. Following the launch of Servo Futura range of lubricants consisting of SERVO Futura Synth, SERVO Futura P, SERVO Futura P Plus, and SERVO Futura D, Lanka IOC PLC Managing Director, Subodh Dakwale, said the launch today marks a distinct technological milestone in the 40 year history of brand ‘SERVO’.
Speaking further he said: “SERVO Futura meets the latest international specifications of American Petroleum Institute, Volvo and Mercedes Benz, besides the latest European specifications. With the launch of SERVO Futura Synth Lanka IOC now joins the select brands of premium global lubricants that offer fully synthetic engine oils.”
The top-end offering SERVO Futura Synth is a 100% synthetic premium lubricant that is formulated from performance enhancing Polaphoalefins group-IV base oils and additives that are classified by the American Petroleum Institute (API). SERVO Futura Synth meets the most advanced performance level standards of API SN, with 5W-50 viscometrics ensuring improved mileage and excellent engine performance. The product offers outstanding protection to engine, besides, enhanced engine life through its effective anti-wear capabilities.

SERVO Futura P+, a hybrid synthetic oil meeting the highest specifications of API SN, is another superior engine oil as also are SERVO Futura P and SERVO Futura D – for petrol and diesel engines respectively.
SERVO Futura range of lubricants are a unique combination of products and services that enable users to combine high quality maintenance and reduced operating costs for materials. It is the smart solution for people who want to simplify the maintenance of their car. It caters to an entire range of new generation vehicles and the advantage of Futura is that it clings to the piston and works even when the engine is not running. It shields the engine’s crucial components even when it’s off providing round-the-clock protection for your car’s engine. The superior polar chemistry ensures cleaner engine, provides enhanced engine life and lower maintenance cost.

SERVO with more than a 40% share in the Indian market of approximately 1.4 million metric tonnes served by more than 40 lubricant companies which include all of the world’s leading brands, is fast becoming Sri Lanka’s preferred choice of lubricants ahead of its competitors due to the unmatched quality and range of its products. Today, SERVO is the second largest selling brand in Sri Lanka. Continued availability resulting from a wide distribution network further fortifies its stake in the market as a major player. SERVO’s attention to detail also ensures that venturing into new explorations, collaborations and relationships are consistently carried out in accordance with the company’s vision of providing unrivaled product and service excellence. Recently LIOC has commenced manufacturing group II based diesel engine oils meeting API CH4 specification in its plant in Trincomalee. LIOC has launched the concept of SERVO Shops which are exclusive shops for marketing SERVO range of lubricants.

Speaking on this occasion Dakwale, further said, “Being a market leader, we have a keen eye on the ever changing dynamics of the market. Rising oil prices and the ever-growing demand for environment protection has resulted in the industry seeking energy-efficient and less polluting engines. In turn this has pressurized oil manufacturers into delivering absolutely cutting-edge products.”

He further stated that for more than 40 years SERVO has worked assiduously to earn the trust of man and the respect of machine. Working deep inside the crankcase of high-speed engines where massive heat is generated and friction can cause engines to seize, SERVO has discharged an important responsibility with self-belief and commitment. Today, it symbolizes innovation, technology, reliance and value.

Lanka IOC PLC is the overseas venture of IOC India, a Fortune 500 company. It is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 150 retail petrol/diesel stations in Sri Lanka and has a very efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee, Sri Lanka’s largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricant blending plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee. With a powerful compilation of energy brands in addition to the SERVO brand of lubricants including, ‘XtraPremium Euro III Petrol, XtraMile Diesel’ strengthening its portfolio, IOC India has also paved the way for Lanka IOC to achieve a turnover of Rs 60.4 billion.