Castrol India Limited Q1 2013 results point at improved stats with Profit after Tax increase to the tune of 1% at 124.3 crores as compared to 122.9 crores in the same period last year. Ravi Kirpalani has been appointed as Managing Director of the company. Kirpalani was earlier Automotive Director and Chief Operations Officer of Castrol India and assumed his new office from 27th April 2013.
Sales during the Q1 2013 period were also the same as compared to sales in Q1 2012. Current Q1 sales figures totaled INR 781.4 crores as against 781.1 crores of Q1 2012. Following flat results, the company’s Board of Directors have also decided on capital reduction scheme. Face value of shares will be reduced from INR 10 per share to INR 5 per share and will need to be approved by Stock Exchange and regulatory body SEBI, besides shareholders of the company and the Mumbai High Court. Castrol India does not see any improvement in the coming months considering the sluggish state of the economy, slow auto growth in the country and conversely decreased demand for lubricants all of which combine to put profit margins under severe constraints.
Ravi Kirpalani said, “The first quarter results reflect improved gross margin on account of better realisations and softening base oil prices. Furthermore, managing and controlling cost helped deliver a growth in Profit from operations before other income and finance charges by 7% during the period under review”.
He added, “Castrol India continues to grow and has delivered a strong underlying performance especially in its core retail automotive business, despite the extremely challenging external environment. This growth has been led by the two wheeler and passenger car segments where we have increased volumes significantly. The growth in the retail automotive part of the business was partially offset by the Industrial, Marine and Building & Construction segments which were severely impacted due to the extremely difficult external environment. As a result of this, our sales in these segments were also impacted”.