|Apr – Jun||Apr – Jun||% Inc||Jan – Jun||Jan – Jun||% Inc/|
|Net Sales / Income from Operations||970.8||923.6||5||1,826.5||1,722.8||6
|Profit Before Tax||319.0||281.8||13||583.9||504.6||16|
|Profit After Tax||206.9||184.5||12||379.3||331.2||15|
Castrol India Limited today announced its results for the first half and second quarter (April – June) of 2016. The company delivered its highest ever quarterly profit, continuing to build on operational momentum driven by volume growth and a favourable cost of goods environment.
The quarter’s profit from operations was up by 13% as against same quarter last year. Profit before tax during the quarter under review was also up by 13% at Rs.319 crores whilst Profit after Tax was up by 12% at Rs. 206.9 crores as compared to the same period last year.
For the six month period January – June 2016, Profit from Operations was up by 23% to Rs.549 crores as against Rs.446 crores during the same period in the previous year.
The Board of Directors of the company, have at their meeting held on 27th July, 2016 declared an Interim Dividend of Rs.4.50 per share for the year ending 31st December, 2016 (2015: Interim Dividend – Rs.4.00 per share) The interim dividend would be paid to those shareholders whose names appear in the Register of Members at the close of business hours on 8th August, 2016 and would be payable on 18th August, 2016.
Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited, said: “This is a robust set of results, building upon the strong momentum of the previous quarter. I am particularly satisfied with the overall volume growth of 7% in the first half, which is in line with our expectations and reconfirms that we are on the right track with our strategy and plans.”
He further added, “This volume increase is driven by double digit growth in the personal mobility segment and power brands. We also see a positive trend in the industrial segment where we have grown ahead of the market in our focus categories of metal working fluids and high performance products.”
Castrol India continues its focus on delivering pioneering technology products for Indian consumers and customers and during the first half of the year we added two new brands to the iconic Castrol GTX family – Castrol GTX Ultraclean and Castrol GTX ECO. Castrol GTX Ultraclean is the cleanest GTX ever launched and helps keep car engines 50% cleaner than industry limits*. Castrol GTX ECO is Castrol’s pioneering first step in eco-engineered lubricant technology delivering 10% CO2 reduction* and helping extend engine life.
We also launched a high performance cutting fluid Alusol SL 35 XBB in the Industrial segment, which is setting new standards for the industry. The product delivers significant improvements for controlling manufacturing costs, increasing productivity, protecting the quality of end products and meeting HSSE requirements.
Outlook: Commenting on the outlook for the second half of the year, Omer Dormen said: “We are progressing well against our strategy and that makes us confident about the future. Looking ahead, we expect that the lubricant market will continue to recover, driven by increased vehicle sales and freight movement. At the same time we expect the volatility in input costs and exchange rate to continue.
In the longer term, we are optimistic about the Indian lubricant market and our business growth. Castrol India is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and highly committed staff.”
*50% cleaner than the API SN limit as measured in the ASTM Sequence VG sludge test **With its specially developed refining process, CO2 equivalent emissions are reduced by 10% during the lubricant’s life cycle. 10% CO2 reduction based on 2015 Life Cycle Assessment when compared with Castrol GTX Diesel 15W-40.