Castrol India Q2 Net down 5% at Rs.142.5 crores; Half year Net up 4% at Rs.279 croresInterim Dividend at Rs. 7- per share
|Rupees in Crores|
|April – June 2011||April – June 2010||% Increase / (decrease)||January – June 2011||January – June 2010||% Increase / (decrease)|
|Net Sales||790.0||744.0||6 %||1540.7||1398.0||10 %|
|Profit Before Tax||211.7||227.2||(7) %||414.7||409.0||1 %|
|Profit After Tax||142.5||150.3||(5) %||279.1||267.5||4 %|
During the quarter under review, Profit before Tax decreased by 7% to Rs 211.7 crores whilst Profit after Tax decreased by 5% to Rs.142.5 crores. Net Sales were up by 6% to Rs. 790 crores.
The company has declared an interim dividend of Rs.7/- for the year ending 31st December, 2011.
Commenting on the results, Naveen Kshatriya, Vice Chairman, Castrol India Limited, said, “The results reflect the challenging base oil and additive cost environment in the first half of the year. The company has taken pricing actions to protect its margins, whilst continuing its focus on cost efficiencies”.
One of the key pillars of the company’s success has been its strong partnerships with local and international Original Equipment Manufacturers (OEMs). In addition to its strong and enduring existing partnerships with most local and global OEMs in India, the company has signed a partnership agreement with BMW India to supply automotive lubricants to the BMW dealer network in the country. The company also extended its strategic partnership with Tata Motors for a further period of five years.
Castrol’s Industrial business has also recently entered into a strategic alliance with ACE Micromatic Group – the largest CNC machine tool manufacturers in India - to work together to help unlock value in the manufacturing process of customers.
Outlook: We expect market pricing equilibrium to be better in the second half and given the decline in crude, base oil is expected to soften. This is expected to positively impact company performance during the second half of the year. However, demand for lubricants may soften given the challenging global economic situation. Inspite of this we expect a stronger performance in the second half and remain confident of the longer term growth potential for the company.