Castrol India second quarter net down 19% at Rs. 124.4 crores

April – June 2014
April- June 2013
Q2 % Inc / (Dec)
1H Jan-June 2014
1H Jan - June 2013
% Inc/ (Dec)
Net Sales / Income from Operations
April – June 2014
910.3
April- June 2013
858.8
Q2 % Inc / (Dec)
6.0
1H Jan-June 2014
1725.4
1H Jan - June 2013
1640.2
% Inc/ (Dec)
5.2
Profit Before Tax
April – June 2014
188.8
April- June 2013
225.4
Q2 % Inc / (Dec)
(16.2)
1H Jan-June 2014
341.8
1H Jan - June 2013
410.7
% Inc/ (Dec)
(16.8)
Profit After Tax
April – June 2014
124.4
April- June 2013
153.6
Q2 % Inc / (Dec)
(19.0)
1H Jan-June 2014
224.6
1H Jan - June 2013
277.9
% Inc/ (Dec)
(19.2)
Castrol India Limited today announced its second quarter results for the period April – June 2014. The Profit after Tax was down by 19% at Rs. 124.4 crores as against Rs.153.6 crores during the same period in the previous year. 

For the six month period January – June 2014, Profit after Tax is down by 19 % to Rs. 224.6 crores as against Rs. 277.9 crores during the same period in the previous year.

The Board of Directors of the company, have at their meeting held on 31 July 2014, declared an Interim Dividend of Rs 3.50 per share for the year ending 31 December 2014 (2013: Interim Dividend   Rs.3.50 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  5 August 2014 and would be payable on  21 August 2014.

Commenting on the second quarter results, Ravi Kirpalani – Managing Director, Castrol India Limited, said: “The profit for the second quarter was lower largely due to lower ‘other income and profit from sale of non-operating assets’ as compared to the same period last year. Profit from Operations during the second quarter was down by 4% as compared to the same period in the previous year.”

“The macro economic environment continued to remain challenging with the twin headwinds of lower demand and sharp escalation in the cost of goods. The company was able to recover the increase in cost of goods through improved sales mix and judicious pricing actions. The personal mobility business continues to demonstrate strong underlying volume and value growth.
 
“The industrial business also delivered a good performance with over seven percent volume growth despite demand shrinkage in all core manufacturing sectors. This was driven largely by new customer acquisition, distribution expansion, and differentiated product and service offers.”

The company continues to invest in its brands, people, pioneering technology and marketing activities. During the first half of the year, the company launched two new products in the automotive segment including Castrol MAGANTEC Stop Start car engine oil with intelligent molecules which cling and form a self-healing layer of protection so it is always ready to protect each of the critical stages of stop start driving and Castrol CRB Mini Truck with Heat Shield Boosters specially engineered to fight heat in Mini Truck engines to deliver three times better heat protection. The company also re-launched Castrol Activ Scooter with Zip Booster molecules that protect engine from zip robbing deposits and keep scooters as zippy as new.

Outlook:

The strong headwinds of 2013 are continuing into 2014 and the second half is likely to remain both volatile and uncertain due to the macro-economic weaknesses. However, there are signs of recovery driven by positive sentiment and renewed focus on infrastructure growth.

The company’s response is to continue its sharp focus on the personal mobility business and improving its brand advantage, advocacy and availability.

In the longer run, we continue to remain optimistic about the lubricant market and our business growth. The company is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and continued commitment of our staff.