Castrol '07 net rises 41.5%

Castrol India, the country's second largest lubricants maker, today reported a rise of 41.55 per cent in net profit at Rs 218 crore for the year ended December 2007 compared with Rs 154 crore in the previous year (December 2006).

Net sales grew 7.76 per cent to Rs 1,888 crore as against Rs 1,752 crore during the two comparable years.

Net profit for the final quarter ended December 31, 2007, jumped 50 per cent to Rs 57 crore compared with Rs 38 crore in the same quarter of the previous year. Net sales, however, declined by 1.24 per cent at Rs 475 crore (Rs 481 crore) in the quarter.

The board of directors has recommended a dividend of Rs 9.50 a share on every share of Rs 10 held.

Naveen Kshatriya, MD, Castrol India, said, "The company has recorded a remarkable increase in profits through the twin approach of growth in top line and effective cost management. The operating margin has improved to 17 per cent with a combination of judicious pricing, improved sales mix and some reduction in the cost of materials. This reduction was achieved through effective procurement strategy, which gave us a competitive advantage."