Castrol Q3 Net up 22 pc at Rs 104.5 crore

MUMBAI: Leading lubes maker Castrol India today said its net profit grew 22 per cent to Rs 104.5 crore in the third quarter ending September.

The net profit stood Rs 85.7 crore in the year-ago period.

The company, however, recorded a flat sales growth at Rs 719.6 crore as against Rs 718.90 crore in the year-ago period.

Commenting on the numbers, company's Managing Director Ravi Kirpalani said: "Despite the unfavorable economic scenario, including significant rupee depreciation, the third quarter results show improved gross margin on account of higher sales realisation, lower base oil prices and effective cost management strategy".

Terming the business environment highly challenging, he said continuing rupee depreciation, credit crunch and overall industry slowdown continued to be hampered, which led to volume drop. But this was partially offset by a strong performance in the personal mobility sector.

On the business outlook, Kirpalani said that continued economic headwinds, rupee volatility and high crude and base oil prices are likely to impact the growth and margins in the short term.

"In the longer run, however, we are confident about the lubricant market and business growth. We are in a strong position to benefit from growth opportunities on account of its strong brands, enduring relationships with key stakeholders and continued commitment of its staff," Kirpalani concluded.