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Friday October 31, 02:34 PM
Castrol India Limited Unaudited Financial Results for the 3rd Quarter Ended 30th September 2008 |
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Mumbai, Maharashtra, India, Friday, October 31, 2008 -- (Business Wire India) -- Despite the challenging environment, Castrol India Limited has delivered an impressive set of results for the third quarter of 2008.
During the Quarter July – September 2008, Profit After Tax increased by 10% to Rs. 59.6 crores and Net sales / Income from Operation is up by 29% to Rs. 556 crores compared to the same quarter last year.
For the nine month period, January –September 2008, Profit Before Tax is up by 34% to Rs 338 crores, Profit After Tax increased by 33% to Rs. 215 crores and Net sales / Income from Operation is up by 18% to Rs. 1670 crores.
Commenting on the results, Naveen Kshatriya, Managing Director said, “Castrol India has delivered significant growth in revenue in 3rd quarter, driven largely by higher price realizations. The cost of goods (COGS) environment continues to be extremely challenging with sharp and unprecedented increases of c.47% in input costs. Although the cost of crude oil is dropping, the price of base oil has not yet followed this trend and continues to be at high levels. Whilst base oil price will eventually drop, it is expected that some of the benefits will be offset by the sharp devaluation of the Indian Rupee over last 6 months against the US Dollar.
Despite the challenging COGS environment and economic slowdown, the company has continued to focus on its long term strategy of up-trading consumers by offering higher value products like the recently relaunched Castrol CRB with synthetic technology. This new product offers better fuel economy, greater engine protection and longer oil drain as compared to oils with similar specifications. Castrol continues to focus on upgrading its product portfolio and offering superior value through its use of synthetic technology in its key brands like Castrol Magnatec and Castrol Power1. With even stronger focus on costs, efficiencies and customer service, we are confident of facing the current economic challenges affecting businesses across the globe.
We continue to enjoy the patronage of discerning customers and consumers even in the face of price increases we have had to take to neutralize cost escalation”.
Outlook :
With the current economic and liquidity crisis and likely slowdown in the growth rate of the economy, we expect the volume growth to be impacted in the short term. It is expected that the revenue outlook for the rest of the year will remain positive, aided by a good monsoon, but the profit scenario in last quarter might be challenging, given the depreciation of the Indian rupee impacting input costs adversely and the liquidity crisis impacting customers’ ability to purchase.
Although the current volatility in the macro environment will inevitably have some impact on our business, the company is confident of facing the current environmental challenges and delivering on its growth intent with its strong brands, enduring customer relationships, a clear strategy and diligent execution. Your company is further convinced of improving its growth record when the macro economic situation improves.
Naveen Kshatriya
Managing Director & Chief Executive
Castrol India Ltd.
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.
For more on Castrol India Ltd., visit www.castrol.co.in
To view the Press Release and Unaudited Financial Results, please click on the links given below:
Castrol Press Release
Unaudited Financial Results
Media contact details
Archana Thomas,
IPAN,
+91 9322702013,
archana.thomas@ipan.com
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