The company posted a profit of Rs 117.9 crore during the fourth quarter a year earlier.
Profit for the full year went up 13.7 per cent to Rs 508.6 crore from Rs 447.4 crore in 2012, Castrol India said in a statement. The company follows the calendar year for auditing.
Castrol India also decided to split each share into two, effective March 3, according to the statement.
Sales during the fourth quarter rose 6.4 per cent to Rs 806.3 crore, while for the full year, it climbed 1.9 per cent to Rs 3,166.1 crore.
"Despite a challenging economic environment, Castrol recorded higher net profit, thanks to the improved gross margins and effective cost management," Managing Director Ravi Kirpalani said.
He said the weak macro-economic environment, falling rupee, high inflation, rising fuel prices and high interest rates impacted both demand and costs and saw vehicle sales, except two-wheelers and tractors, falling in double digits, the worst performance in over a decade.
"Despite these challenges, the company delivered strong underlying profit growth, driven largely by our personal mobility business, which includes passenger car and two-wheeler oils. The micro-marketing approach in passenger cars and the use of digital and social media were strong enablers in these segments. This was complemented by strong growth in our distribution network," said Kirpalani.
He said the strong headwinds of 2013 are likely to continue this year. The first half is likely to remain both volatile and uncertain owing to the macro-economic weaknesses and upcoming national elections.
The company announced a final dividend of Rs 3.50 a share for the year.