|Q3 Jul - Sep 2017||Q3 Jul - Sep 2016||Q3 % Inc/ (Dec)||9M Jan - Sep 2017||9M Jan - Sep 2016||9M % Inc/ (Dec)|
|Net Sales / Income from Operations||861.4||878.1||-2%||2881.2||2974.9||-3%|
|Profit Before Tax||275.6||217.6||27%||757.9||801.5||-5%|
|Profit After Tax||178.2||139.8||27%||495.1||519.1||-5%|
Castrol India Limited today announced its results for Q3 2017 and the nine month period – January to September 2017.
Profit After Tax during the third quarter under review was up by 27% at Rs.178.2 crores compared to Rs.139.8 crores for the same quarter last year. This was driven largely by strong volume growth during the quarter under review, despite the complexities around the GST implementation.
The decline in Net Sales / Income from Operations during the quarter was due to changes in treatment of indirect taxes post GST implementation. Excluding this impact, Net Sales in the current quarter increased by 13% over same period last year and by 1% over the nine month period compared to previous year.
The Board of Directors, at its meeting held on 7 November 2017, has recommended issue of bonus shares in the ratio of one equity share of Rs. 5/- each for every one equity share of Rs. 5/- each (1:1), which is subject to approval of the Members of the Company by way of Ordinary Resolution through Postal Ballot and e-voting. Such bonus shares, if approved by the Members of the Company shall rank pari-passu with the existing shares of the Company but shall be entitled to participate in full in any dividend (s) to be declared after the bonus shares are allotted.
Commenting on the results, Omer Dormen, Managing Director said: “The third quarter results show a strong comeback compared to previous quarter and confirms that we are on track with our growth strategy and aspirations. The results are especially commendable given that the quarter saw the GST implementation which created considerable initial uncertainty in the market place.”
“The personal mobility segment, which is the pillar of our growth strategy, saw a double digit volume growth during the quarter whilst power brands also showed similar growth, compared to same period during the previous year.”
“One of the highlights of the quarter was the Golden Peacock Award commendation for Corporate Governance received by the Company in recognition of its strong focus on Ethics & Compliance.
During the quarter under review, the Company continued to make strong progress on its strategic priorities, focusing on new customer acquisition, distribution expansion and delivering premium customer experiences at each touch point. The Company entered into a new exclusive supply partnership with Piaggio and extended its existing OEM partnerships with the VW Group (Skoda, Audi and VW) and Volvo cars.
The Industrial business also achieved a strong win for its metal working fluids with TaeguTec India – a leading supplier of carbide cutting tools.
The Company also undertook a strong outreach programme connecting with over 100,000 mechanics through the Castrol Super Mechanic contest.
Despite the challenging external environment, Castrol India is progressing in line with its strategy. With the stabilization of the business environment post GST launch, the Company is confident that the actions it continues to take, will deliver results. Looking ahead, we expect that the Indian economy and the lubricant market will continue to recover, driven by the positive economic measures, improved COGS and increased vehicle sales and freight movement.
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.