Castrol India Ltd.’s profit after tax during the period April to June 2018 was up by 19% at Rs. 164 crores as compared to the same period last year, driven largely by higher volume as well as improved margin. Profit after tax during the half year January to June 2018 was up by 9% at Rs. 346 crores as compared to the same period last year.
Reported revenue from operations during the quarter and the half year under review is not comparable with last year numbers due to changes in treatment of indirect taxes post GST implementation. Excluding this impact, revenue from operations in the quarter under review increased by 17% over the same quarter last year and by 11% over the first half of the year compared to the previous year.
The Board of Directors has recommended an interim dividend of Rs. 2.25 per share (2017: interim dividend Rs. 4.50 per share). The said interim dividend is on the enhanced paid-up share capital post issue of bonus shares in the ratio of 1:1 allotted on December 26, 2017. The record date for the purpose of the said interim dividend is August 10, 2018, which would be paid on or before August 29.
Commenting on the results, Mr. Omer Dormen, Managing Director, Castrol India Ltd., said: “I am delighted with our continued strong financial performance during the second quarter April-June 2018. In line with our strategy, we have delivered volume growth for the tenth successive quarter, year on year (except the quarter of April-June 2017 impacted by the GST transition), despite the steep rise in input costs. Close to 80% of our growth has come from the new products launched during the last nine months. What is particularly pleasing is that despite the challenging cost environment, we have grown faster than the automotive lubricants market. While personal mobility continues to be a key strategic growth driver, the focus on our significant commercial vehicle engine oil portfolio is also delivering results with record volume growth driven by the launch of new products and aided by a favourable economic environment, with emphasis on infrastructure development.”
Maintaining Castrol India’s commitment to deliver differentiated, technologically superior, future ready products with distinctive consumer benefits, the company strengthened its Specialties portfolio, introducing Castrol TRANSMAX driveline oils and Castrol SPHEEROL greases providing increased protection and reduced downtime.
In recognition of the company’s superior quality and customer excellence, it was awarded the ‘Overall Performance’ trophy by Maruti Suzuki India Ltd. The company has also been chosen as approved supplier for Suzuki Ecstar branded lubricants in their premium NEXA channel.
Castrol India was also awarded the prestigious ‘Golden Peacock Occupational Health and Safety Award’ for its manufacturing plant at Patalganga, acknowledging its focus on safety as a key priority for the business.