Castrol India Q2 PAT up 26 per cent

Written by Businesswire India | Mumbai, July 31: | Updated: Jul 31 2008, 21:08pm hrs
Castrol India Limited has delivered another impressive set of results for the second quarter of 2008. The performance has been underpinned with profitable volume growth.

During the Quarter April - June 2008, Profit Before Tax increased by 26% to Rs.128 crores, Profit After Tax increased by 26% to Rs. 83 crores and Net Sales was up by 15% to Rs. 621 crores. For the six month period, January June 2008, Profit Before Tax is up by 47% to Rs 246.1 crores based on a net sales increase of 13% over the corresponding period in 2007. The company has declared an interim dividend of Rs.6 per share for the year ending 31st December 2008.

Commenting on the results, Naveen Kshatriya Managing Director Castrol India Limited, said, Castrol India has achieved a record performance in this quarter as a result of higher volumes, improved price realization to recover sharply escalating cost of goods and better procurement. The fact that our customers continued to patronise our products in the face of rapidly increasing product prices, only vindicates strong brand preference and the superior customer value we offer. In the current environment of raw material shortages, we take care to be a dependable supplier for our valued, loyal customers.

Responding to the challenges of a difficult environment, the company has suitably enhanced marketing support through informative advertising and value adding promotions. The scale-up for Castrol BikeZone a franchised motorcycle servicing concept slowed with high real estate rentals.

Outlook

The overall economic turmoil due to high inflation, interest rates, fuel prices, reduced economic activity, etc, will take its toll on overall lube volume consumption, at least in the short to medium term, primarily in the B2B customer base. Recognizing the tough market conditions, the company will focus on creating superior value for its customers by upgrading both its product and service offers. The company will also endeavour to grow in its profitable volume segments, focusing even more on value growth through superior, high technology products. Should base oil and other input costs escalate rapidly, the margins might be impacted in the short term due to lag in recovery.

About Castrol India Limited

Castrol India Limited is a public limited company in which 70.92 % of the paid-up capital is held by Castrol Limited, U.K which is a part of BP Group worldwide. Starting off as a trading unit in India, Castrol has grown to become the largest lubricant company in the retail automotive segment. Castrol has constantly demonstrated its commitment to Indian consumers by offering world class products, backed by the highest level of customer service. Castrol India is acknowledged as the technology leader in the Indian lubricant industry.