BWI: Castrol India Q3 Net up 60%, at Rs. 95.6 crores

Press release from Business Wire India
Source: Castrol
Monday, October 26, 2009 04:00 PM IST (10:30 AM GMT)
Editors: General: Consumer interest, Economy; Business: Automotives, Banking & financial services, Business services, Financial Analyst, Stock exchanges; Automotive
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Castrol India Q3 Net up 60%, at Rs. 95.6 crores


Mumbai, Maharashtra, India, Monday, October 26, 2009 -- (Business Wire India) -- Castrol India Limited today announced its third quarter results for the period July - September 2009. The company delivered an outstanding performance with Profit Before Tax growing by 56 % to Rs.143.2 crores. During the same period, Profit After Tax increased by 60% at Rs. 95.6 crores whilst Net Sales were up by 2% to Rs. 565.3 crores.

For the nine month period January - September 2009, PBT is up by 36% to Rs. 458 crores whilst PAT increased by 39% to Rs. 300.3 crores as compared to the same period in previous year.

Commenting on the results, Naveen Kshatriya, Vice Chairman - Castrol India Limited, said, "Castrol India has delivered an extraordinary performance with PAT increasing by 60% in the quarter. This performance is attributable to the consistent execution of our long term strategy and is underpinned by 'in year focus' on margins, attacking cost inefficiencies and reducing working capital. The business has gained from lower base oil prices, although other key input materials continue to remain at high levels. All this has helped deliver strong bottom line and cash flow. Results during the first nine months reflect our ability to deliver a sustainable winning performance even in a challenging environment. Given the upturn in the economy and the resultant growth of the lubricant market in India over the next few years, Castrol India will continue to focus and prioritise on its core lubricant product business".

Mr. Kshatriya further said, "We have held volumes in the current quarter reflecting the underlying robustness of our strategy and intrinsic brand strength which has enabled us to leverage the early indications of an upturn in the economy. The margin improvement has been achieved through a combination of premium product mix, retaining unit realization and favourable cost of materials. We have also worked aggressively on cost efficiency and cost effectiveness programs to make every rupee count and further improve our profitability. We continue to focus heavily on safety in operations".

Despite the challenging environment, the company elevated its level of marketing investment in key brands. The current quarter saw the launch of a new 360 degree campaign for Castrol Activ - the market leader in four stroke motorcycle oils, with the benefit of all-round protection. This was positively received by the consumers and the sales of the brand have shown a significant growth. We continued communicating the unique benefits of synthetic technology in our leading diesel engine oil brand Castrol CRB Plus for trucks and tractors. We also focused on extending the reach of our products across the country. All these initiatives helped improve our competitive position in the market.

Commenting on the outlook for the year, Mr. Kshatriya said, "We expect the economy to continue to gain momentum and with demand revival, we hope to gain volumes. However, as crude has moved up circa USD 80/barrel from its lows of USD 40 / barrel early this year , our raw material prices are hardening and going forward this is likely to impact margin. Despite this and the impact of the poor monsoon this year, we remain confident of sustainable growth in our financial performance. Our confidence is based on superiority of our products, strong customer relationships, continued focus on improving the operational efficiency and sustained investment in brand and organizational capability building, supported by the unflinching commitment of our employees, our business partners and our loyal consumers."

To view the Press Release with the Table and the Financial Results, please click on the links given below:

Press Release

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Rashmi Sharma, IPAN Hill & Knowlton, +91 9867395475, rsharma@ipanhillandknowlton.com
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KEYWORDS
CONSUMER, ECONOMY, AUTOMOTIVE, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES, AUTOMOTIVE, CASTROL.BO, CASTROL.NS

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