Castrol India Sept quarter net profit rises 21.5% to Rs 143.2 cr

Castrol India Ltd today reported a 21.5% rise in the September quarter net profit to Rs 143.2 crore.

The lubricant maker had reported a net profit of Rs 117.9 crore in July-September 2014 quarter.

Sales were down 2.2% at Rs 784.3 crore, Castrol India said in a statement.

Commenting on the results, Omer Dormen, Managing Director, Castrol India said: "The financial results for the third quarter demonstrate a solid performance, building on operational momentum and continued premiumization of our portfolio, aided by a more favorable cost of goods environment."

Castrol India follows January to December year for financial reporting.

"The business continues to be driven by strong performance in personal mobility segment with Castrol Activ increasing its market share and strengthening its leadership position in the two-wheeler engine oil category," he said.

Commenting on the industrial part of the business, he said: "After sharp decline in the first two quarters due to sluggish manufacturing activity and increased competition, the industrial business is seeing some improvement as a result of new customer wins especially in the wind and steel segments."

On future outlook, Castrol said although the drop in crude oil price has translated into lower base oil cost, volatility in the cost of goods due to volatile Rupee exchange rate is likely to be experienced.

"In the longer run, we continue to remain optimistic about the Indian lubricant market and our 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," the statement said.

The first nine months of the year have been challenging environment for commercial vehicle oils and industrial lubricant oils, Castrol added.