Castrol India Q1 net up by 16.55 per cent at Rs 136.6-crore

Mumbai, April 27: Automobile lubricants-maker, Castrol India, today (April 27) said it has clocked a 16.55 per cent jump in its net profit at Rs 136.6-crore for the quarter ended March 31, 2011, as against Rs 117.2-crore in the same period last year.

The company's net sales jumped 14.8 per cent at Rs 750.7-crore in the January-March quarter (Q1 FY 11), as against Rs 654-crore in the same period last year.

"This is a good performance with net sales and PAT both showing a sharp increase. Margins have improved despite a significant raw material cost increase, primarily driven by pro-active pricing. We also grew volumes during the quarter under review, reflecting the underlying robustness of our strategy and the intrinsic strength of our brand," Castrol India's Vice-Chairman, Naveen Kshatriya, said in a statement.

The base oil and additive cost environment was challenging in the current quarter and this trend is likely to continue over the short-term.

"This may put pressure on our margins and volumes. We expect to meet this challenge with continuous innovation, focus on cost efficiency and up-trading consumers to superior products," he said.

"We remain confident of a sustainable long-term improvement in our financial performance. Our confidence is based on superiority of our products, strong customer relationships, proven track-record of improving operational efficiency and sustained investment in brand and organisational capability building," Kshatriya said.

PTI