The Hindu Business Line : Castrol PAT up 26 per cent at Rs 82.8 cr

MUMBAI: Automotive lubricants major Castrol India announced a rise of 26 per cent in its net profit at Rs 82.8 crore in the second quarter of fiscal 2008 as against Rs 65.9 crore in the year-ago period.

The company's net sales in the reporting quarter were up 15 per cent at Rs 621.4 crore as against Rs 540.1 crore in the year-ago period, a release said here on Friday. The company declared an interim dividend of Rs six per share for the year ending Decem ber 31, 2008.

“Castrol India has achieved a record performance in this quarter as a result of higher volumes, improved price realisation to recover sharply escalating cost of goods and better procurement,'' Castrol India Managing Director Naveen Kshatriya said.

Overall economic turmoil due to high inflation, high interest rates and fuel prices and reduced economic activity among others would take a toll on overall lube volume consumption, at least in the short-to-medium term, primarily in the B2B customer base.

Recognising tough market conditions, the company would focus on creating superior value for its customers by upgrading both its product and service offers, Castrol said. It would make efforts to grow in its profitable volume segments, focusing more on v alue growth through superior, high-technology products, the release added.

“Should base oil and other input costs escalate rapidly, the margins might be impacted in the short-term due to lag in recovery,'' the company said. – PTI

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