Castrol claims a strong first quarter performance in spite of continued volatility in crude oil price and steep depreciation of the Indian rupee.
01 Aug 2018 | 3760 Views | By Autocar Professional Bureau
Lube major Castrol India has announced that its profit after tax during Q1 FY2019 (April-June 2018) is up by 19 percent at Rs 164 crore as compared to the same period last year. As for the half-yearly period (January-June) in 2018, profit after tax stands at Rs 346 crore, up 9 percent ...
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Lube major Castrol India has announced that its profit after tax during Q1 FY2019 (April-June 2018) is up by 19 percent at Rs 164 crore as compared to the same period last year. As for the half-yearly period (January-June) in 2018, profit after tax stands at Rs 346 crore, up 9 percent year on year.
Commenting on the results, Omer Dormen, managing director, Castrol India said, “In line with our strategy, we have delivered volume growth for the tenth successive quarter, year on year (except the quarter of April-June 2017 impacted by the GST transition), despite the steep rise in input costs. Close to 80 percent of our growth has come from the new products launched during the last nine months.”
He further added, “While personal mobility continues to be a key strategic growth driver, the focus on our significant commercial vehicle engine oil portfolio is also delivering results with record volume growth driven by the launch of new products and aided by a favourable economic environment, with emphasis on infrastructure development.”
Castrol India says its revenue from operations in Q1 FY2019 is up by 17 percent YoY and by 11 percent over the first half of 2018 as compared to H1 CY2017.
The company, which recently introduced its Transmax driveline oils and Spheerol grease in the domestic market, has received received the 'Overall Performance’ trophy from Maruti Suzuki India. Also, its manufacturing plant at Patalganga had been conferred with ‘the Golden Peacock Occupational Health and Safety’ award earlier this year.
Optimistic on future growth
As regards future growth, Castrol India says it expects a challenging second half of CY2018 due to the continued volatility in crude oil price and steep depreciation of the Indian rupee, albeit it will be taking appropriate action to support the volume growth momentum.
The company continues to remain optimistic about the long-term growth potential of the business aligned to its long term strategy underpinned by continued investments in technology and brands, aggressive expansion of distribution network, innovative marketing programmes and delivery of premium customer experience across multiple touch-points.