Good growth prospects but margin-hit likely in FY 11: Castrol

Written by: Pti
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Mumbai, Feb 22 (PTI) Castrol India today said with thecountry''s economy poised to maintain its growth momentum, thelubricants industry is likely to witness growth from bothpersonal mobility and infrastructure segments.

The lubricants maker, however, warned margins could beimpacted due to the expected steep rise in the cost of goods.

"Despite this risk, we remain confident of sustainablegrowth in our financial performance," Castrol India said in arelease here.

The lubricants major has clocked an 18 per centincrease in net sales at Rs 2,734.7 crore for the year-endedDecember 31 as compared to the previous year, while its PATgrew 28.7 per cent to Rs 490.3 crore.

The company has declared a final dividend of Rs 8 pershare. It has already paid an interim dividend of Rs 7 ashare. Hence, the total dividend paid for the financial yearJanuary�December 2010 is Rs 15 per share, it said.

Both dividends have been paid on the enhanced sharecapital post-the issue of bonus shares. (The company hadallotted in April 2010 bonus shares in the ratio of 1:1).

The total dividend paid for 2009 was Rs 25 per share(which included a special dividend of Rs 10 a share). However,the dividend for 2009 was paid on the old share capital i.e.

prior to the issue of bonus shares, the release said.

Castrol India Vice-Chairman Naveen Kshatriya said thefirm has delivered yet another set of record results withgrowth in sales, unit margins and profits.

"The margin improvement has been achieved through acombination of higher sales of premium products and higherunit realisation through strategic pricing actions." PTI JJRSY

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