Chandigarh, 27 October 2016: Castrol India Limited today announced its third quarter results for the period July-September 2016.
Profit from operations during the quarter under review was down by 1.9% at Rs.202.2 crores whilst Profit after Tax at Rs.139.8 crores was down by 2.4% as compared to the same period last year.
For the nine month period January – September 2016, Profit from operations was up by 15.1% at 751.2 crores whilst Profit after Tax was up by 9.4% to Rs.519.1 crores as against Rs.474.4 crores during the same period in the previous year.
Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited, said: “We continued to grow volume year on year during last quarter across key segments. The volume growth was led by personal mobility and power brands in line with our strategy and also strong growth in industrial segment. We witnessed softer volume in heavy duty segment due to heavy monsoon in some parts of the country. Marine segment volume dipped during the quarter due to continued pressure on marine business globally.
The company continues its focus on volume growth and investment behind power brands. The Commercial Vehicle segment has seen a healthy double digit growth in the key brands which we continue to invest in.
Despite contraction in Industrial IIP in 3Q, the Industrial business sustained its growth trajectory by winning several new customers and gaining share in existing customers with our differentiated products and service offers.”
The company continues to strengthen its brand equity through sustained investment in brand building activities and this has been reflected in the recent Millward Brown survey where Castrol India has the highest brand health scores by far over competitors – both as far as consumers as well as mechanics are concerned.
The company also continues to strengthen its relationships with its key account customers and has recently renewed a strategic five year agreement with Tata Motors passenger car division.
Outlook: The strong results year to date have been achieved in an environment which continues to be challenging for the Commercial Vehicle Oils and Industrial lubricant oils. Looking ahead, in the longer term following the good monsoon and a strong pick up in vehicle sales trend, the company continues to remain optimistic about the Indian lubricant market and our business growth. The company is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and continued commitment of its staff.