Mumbai, Feb 19 (ANI/Business Wire India): Castrol India Limited today declared its audited results for the financial year ended December 31, 2007.
The results reflect an outstanding all round performance in line with the company's growth agenda.
Financials for the period January - December 2007
-- Net profit for the year increased by 41% to Rs.218 crores against Rs.154 crores in the previous year.
-- Gross turnover for the year was Rs.2216 crores an increase of 9% over previous year
-- Operating margin increased to 17%
-- Earnings per share increased to Rs 17.67 from Rs.12.50 in the previous year
-- Return on Net Worth increased to 52%
The Board of Directors at its meeting held today, recommended a final dividend of Rs.9.50/- per share for the year ended December 31 2007 (2006 Final Dividend: Rs. 5 per share) in addition to an interim dividend of Rs 4.50/- per share (2006 Interim dividend: Rs. 4 per share), totaling to Rs. 14/- per share for the full year 2007 versus Rs 9 per share for 2006. Earning Per Share has increased from Rs. 12.50 in 2006 to Rs. 17.67 in 2007.
Commenting on the results, Naveen Kshatriya, Managing Director, Castrol India Limited said, "This is an exceptional result which reflects the strength of the Castrol brand, Customer loyalty and performance of our team. This year the company has recorded remarkable increase in profits through 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. We have continued to enjoy patronage of our discerning customers who recognize the superior products and services we offer," Naveen added.
Commenting further on the business, Kshatriya said, "Today our core lubricant business is driven even more by value than volume, as we focus on advanced formulations required for modern automobiles and machines. While these machines use lower quantum of lubes, they require higher specification lubricants, which are premium in nature. Castrol as always has shaped the market with superior technology, contemporary and consumer relevant products."
"On cost front, the total expenditure in 2007 grew just by two per cent over 2006 by dint of effective raw material procurement and efficient cost management. We continue to invest strongly in good costs - pertaining to people, technology and marketing. We continue to recover such "investment costs" through better pricing from consumers who are willing to pay the premium for Castrol value," Kshatriya added.