Castrol Q2 net profit up 19 pc at Rs 164 cr

Castrol India today posted 19 per cent increase in its net profit at Rs 164.2 crore for the second quarter ended June 30, driven by higher volume as well as improved margin.

The company had reported a net profit of Rs 137.9 crore during the same period of the previous fiscal.

Revenue from operations rose to Rs 1,017.2 crore for the April-June period, as compared with Rs 1,007.7 crore in the same period of previous fiscal, Castrol India said in a statement.

The company follows January-December financial year.

Castrol India Managing Director Omer Dormen said close to 80 per cent of the company's growth has come from the new products launched during the last nine months.

"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 launch of new products and aided by a favourable economic environment, with emphasis on infrastructure development," he added.

On the future outlook, Dormen said that with continued volatility in crude oil price and steep depreciation of the Indian rupee, the company expects a challenging second half, but will be taking appropriate actions to support the volume growth momentum.

The company's board, which met today, also recommended an interim dividend of Rs 2.25 per share.

Shares of the company ended 0.78 per cent up at Rs 173.60 apiece on the BSE.