|Year Ended Jan - Dec 2016||Year Ended Jan - Dec 2015||Year Ended % Inc/ (Dec)||Q4 Oct - Dec 2016||Q4 Oct - Dec 2015||Q4 % Inc/ (Dec)|
|Net Sales / Income from Operations||3,370.4||3,298.0||2.2||782.2||790.9||1.1|
|Profit from Operations||959.9||855.8||12.2||208.7||202.9||2.9|
|Profit Before Tax||1,045.7||950.9||10.0||244.2||225.0||8.5|
|Profit After Tax||674.9||615.2||9.7||155.8||140.8||10.7|
21 February 2017: Castrol India Limited today announced results for the Financial Year/ fourth quarter 2016.
Profit from Operations during the quarter under review was up by 2.9% at Rs.208.7 crores whilst Profit after Tax at Rs.155.8 crores was up by 10.7% as compared to the same period last year.
For the Financial Year January – December 2016, Profit from Operations was up by 12.2% at Rs.959.9 crores whilst Profit after Tax was up by 9.7% to Rs.674.9 crores as against Rs.615.2 crores during the same period in the previous year.
The Board of Directors of the company has at its meeting held on February 21, 2017 declared a Final Dividend of Rs.4.50/- per share (2015: Rs.5/- per share) and a Special Dividend of Rs.2/- per share (2015: Nil per share) for Financial Year 2016.These are in addition to the interim dividend of Rs.4.50 per share (2015: Interim Dividend Rs.4/- per share) paid on August 18, 2016. All dividends for the Financial Year 2016 aggregate to Rs.11/- per share (2015: Rs. 9/- per share). The record date for the Special Dividend has been fixed as March 8, 2017 and the dividend shall be paid on or before March 23, 2017. The Register of Members and Share Transfer Book of the company will remain closed for the purpose of payment of Final Dividend from May 27, 2017 to May 31, 2017 (both days inclusive). The Final Dividend, if approved by the Shareholders of the company at the 39th Annual General Meeting, shall be paid on or before June 30, 2017.
Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited, said: “We are delighted to announce that despite the external challenges faced in the last few months of 2016, Castrol India delivered a strong set of results for the Financial Year as well as Q4 2016. These results have been delivered by excellent performance across both automotive and industrial segments. The heartening part of this year’s results is the overall volume increase of over 4% for the year, driven by continued momentum in the personal mobility segments and power brands, both delivering double digit growth. Furthermore, the efficiency and effectiveness programmes undertaken during the year, enabled us to manage our costs well, as we continued to invest in our brands, our markets and our people.
“It is good to see that our consistent investment behind our power brands and personal mobility space is delivering profitable volume growth. The industrial segment also showed significant volume growth driven by customer wins in the automotive manufacturing, metal working and wind energy segments, despite a challenging environment.”
Omer Dormen continued: “We are very pleased with the strong set of results for the year, delivered against volatile market conditions, thanks to the hard work and effort of our employees and distributors and continued loyalty of our customers. We expect the volatility to increase in the first half of 2017, with rising input costs and the continued impact of demonetization. However, we are confident that our focussed strategy, the strength of the Castrol brand and the commitment of our employees will continue to make Castrol India win in the market.”
The company was recently awarded the prestigious Ramkrishna Bajaj National Quality Award Performance Excellence Trophy, which recognizes performance excellence and emphasises high integrity and quality leadership.
During the year under review, Castrol India made strong progress on its strategic priorities, led by the personal mobility business, mainly driven by Castrol Activ (two-wheeler engine oil) and Castrol MAGNATEC (passenger car engine oil). Whilst the company continues to build the emerging categories of Scooter and Mini truck, the company also saw a turnaround in its commercial vehicles engine oil business with re-launch of its iconic Castrol CRB Plus diesel engine oil.
In line with its focus on delivering pioneering technology products, the company launched a number of innovative products like Castrol GTX ECO and Castrol GTX Ultraclean in the passenger car segment as well as Castrol Alusol SL 35 XBB – a high performance cutting fluid for the industrial segment.
The excellent results for the year have been achieved in an environment which continues to be challenging. The fourth quarter was particularly affected by demonetization which impacted lubricants consumption as well as sale of vehicles and this impact is expected to continue in the early part of 2017. Input costs are also increasing due to rising base oil prices. 2017 is expected to be a challenging year but the company remains optimistic about the Indian lubricant market and its 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 its staff.