New Delhi: Castrol India has posted an increase of 26% Profit Before Tax for Q1. This has gone up to Rs83 crore with Net Sales up by 15% to Rs621 crore. For the six month period, January – June 2008, Profit Before Tax was up 47% to Rs 246.1 crore based on a net sales increase of 13% over the corresponding period in 2007. The company has declared an interim dividend of Rs6 per share for the year ending 31December 2008.
Naveen Kshatriya, managing director, Castrol India Limited, said, “What contributed to our bottomline was the swiftness with which we handled the current environment of raw material shortages by focusing on being a dependable supplier.”
Responding to challenges of a difficult environment, the company has enhanced marketing support through informative advertising and value added promotions. The scale-up for Castrol BikeZone – a franchized motorcycle servicing concept – slowed with high real estate rentals.
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 in the B2B customer base.
The company will focus on creating value for its customers by upgrading both its product and service offers. The company will endeavour to grow in its profitable volume segments, focusing strongly 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.