Castrol India Limited Announces Unaudited Financial Results for The Half Year Ended June 30th, 2006
Mumbai, Maharashtra, India
, 2006-07-22
Castrol India Limited, market leader in the automotive lubricant market has declared its half year results for the period ended June 30th, 2006. The Board of Directors have recommended an interim dividend of Rs. 4 per share for the half year ending 30th June 2006. Net Sales Revenue for the second quarter is up by 21% whereas Profit after Tax has shown an increase of 2 % over the corresponding quarter in the previous year.
Commenting on the results, Mr Naveen Kshatriya, Managing Director said, “Castrol India has achieved significant growth in revenue in the quarter driven largely by higher price realizations. The cost of goods (COGS) environment has continued to be extremely challenging with sharp and unexpected increases in raw material prices resulting in COGS rising by circa 40%. The company has successfully managed to secure higher prices in its retail automotive lubes business thereby mitigating most of the COGS increases. The company is confident of continuing to recover the increases over time and hold on to unit margins. The automotive, agri and industrial sectors of the economy continue to perform well providing the company with opportunities for an improved performance in the financial year”.
Castrol has continued to focus on product upgradation and has launched a slew of new products to expand its portfolio. The second quarter saw the relaunch of Castrol CRB Plus with a new upgraded formulation offering greater benefits to both agri and transport consumers. The company’s focus on the growing 4 stroke motorcycle segment has resulted in strong volume growth performance in this sector.
While the topline outlook for the rest of the year will be positive aided by a good monsoon and fast growing automotive sector, the profit scenario will continue to be challenging given the risk of further escalation in input costs, on the back of rising crude oil price.
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.
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