Castrol India net up 27% at Rs 178 cr in Sept qtr

Castrol India today reported a 27 per cent jump in its September quarter net profit and announced a 1:1 bonus share.
Net profit in July-September at Rs 178.2 crore was higher than Rs Rs 139.8 crore in the same period a year ago, the company said in a regulatory filing.
"This was driven largely by strong volume growth during the quarter under review, despite the complexities around the GST implementation," it said.
Sales, however, dipped 2 per cent to Rs 861.4 crore "due to changes in the treatment of indirect taxes post-GST implementation", it added.
Excluding this impact, the sales in the quarter increased by 13 per cent over the same period previous year.

The company's board recommended a bonus share in the ratio of one equity share of Rs 5 each for every one equity share (1:1).

Commenting on the results, Castrol India Managing Director Omer Dormen 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, he said, are especially commendable given that the quarter saw the GST implementation which created "considerable initial uncertainty in the marketplace".
"The personal mobility segment, which is the pillar of our growth strategy, saw a double-digit growth during the quarter whilst power brands also showed similar growth, compared to the same period during the previous year," Dormen noted.

On the future outlook, the company said, with the stabilisation of the business environment post-GST launch, it is confident that actions 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 and increased vehicle sales and freight movement," Castrol said.
Shares of the company fell 1.93 per cent to settle at Rs 412.25 apiece on the BSE today.