Castrol India posts 2 pc rise in Q2 FY06

New Delhi, July 23: Castrol India Ltd today declared a 2 per cent increase in net profit to 50 crore during the second quarter eended June 30, as against Rs 49 crore in the corresponding period last year.

The net profit during the first half of the current fiscal also saw an increase of 1 per cent over FY06.

''Castrol India has achieved significant growth in revenue in the quarter driven largely by higher price realisations,'' Castrol MD Naveen Kshatriya said in a statement.

The cost of the goods environment has continued to be extremely challenging with sharp and unexpected increases in raw material prices resulting in COGS rising by circa by 40 per cent, he said and added that the company is confident of continuing to recover the increases over time and hold on to unit margins.

While the topline outlook for the rest of the year will be positive aided by a good monsoon and fast growing automotive sector, the profit senario will continue to be challenging given the risk of further escalation in input costs, on the back of rising crude oil price.

UNI