Castrol Q1 net profit falls 19% to Rs 100 crore

Company had registered a net profit of Rs 124.3 crore in the January-March quarter last year

Leading lubes maker Castrol India has reported a 19.4% decline in net profit to Rs 100.2 crore for the first quarter ended March 31, 2014.

Castrol had registered a net profit of Rs 124.3 crore in the January-March quarter last year, the company said in a statement today.

The company follows a January-December financial year.

Net sales of the company during the period under review increased by 4.3% to Rs 815.1 crore as against Rs 781.4 crore in the same quarter a year ago.

"The lower profits for the quarter are a reflection of the continued difficult external market environment largely in the commercial vehicle, building & construction and industrial sectors.

"These lower Profits were a result of weak demand leading to lower volumes, significant rupee depreciation compared to the same period last year," Castrol India Managing Director Ravi Kirpalani said.

On the future outlook, he said the strong headwinds of 2013 are continuing into 2014 and the first half is likely to remain both volatile and uncertain due to the macro-economic weaknesses.

"The company response is to continue its sharp focus on the personal mobility business and improving its brand advantage, advocacy and availability... In the longer run, we continue to remain optimistic about the lubricant market and our business growth," Kirpalani added.

Shares of Castrol India today closed at Rs 288.60 apiece on the BSE, down 1.52% from the previous close.