Castrol India dips 7% on disappointing Q4 results

The stock dipped 7% to Rs 181 after the company reported single digit 2% growth in net profit at Rs 1.82 billion in Q4FY18, due to sharp rise in input costs

Castrol India dipped 7% to Rs 181 on the BSE in early morning trade after the company reported single digit 2% year-on -year growth in net profit at Rs 1.82 billion in March quarter (Q4FY18), due to sharp rise in input costs. It had profit of Rs 1.79 billion in the same quarter year ago.

On a comparable basis without the change in indirect tax treatment, net sales in the quarter under review increased by 5% over the same period last year at Rs 92.7 billion driven by volume growth across categories.

Analysts on an average had expected profit of Rs 1.88 billion on net sales of Rs 95.7 billion for the quarter.

With the continued increase in crude oil price and depreciation of the Indian rupee there is likelihood of further volatility in the cost of goods, Castrol India said in a statement.

At 10:29 am; the stock was trading 5% lower at Rs 185 on the BSE, as compared to 0.33% fall in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 3.43 million shares changed hands on the NSE and BSE so far.

Castrol India was quoting close to its 52-week low of Rs 172 touched on February 2, 2018 on the BSE in intra-day trade.