Castrol India supplier to Ford Sanand plant

Castrol India Limited January – March 2014 results report Profit After Tax down by 19% at Rs 100.2 crores when compared to Rs 124.3 crores in Q1 2013. Castrol reduced the fully paid-up face value of equity shares from Rs.10/- per share to Rs. 5/- per share, and through the quarter paid Rs. 5/- per share to eligible shareholders as on record date of March 3, 2014.

CastrolAs Performance Partner of the International Cricket Council, Castrol India was omnipresent through ICC T20 Cricket World Cup in Bangladesh via a digital campaign to launch Castrol Activ Scooter, its gearless scooter oil. The campaign had an online reach of 43 million and an engagement of six million. In the industrial front, industrial business reported 5% volume growth despite demand decrease in all core manufacturing sectors as a result of customer acquisition, distribution expansion, differentiated product and service offers. Castrol India also won a major contract for exclusive supply of products to Ford’s India Sanand plant during Q1 2014.

Ravi Kirpalani – Managing Director, Castrol India Limited, said, “The lower profits for the quarter are a reflection of the continued difficult external market environment largely in the Commercial Vehicle, Building & Construction and Industrial sectors. These lower Profits were a result of weak demand leading to lower volumes, significant rupee depreciation compared to the same period last year, hardening base oil prices and increased investment behind people and advertising costs. The adverse impact of the Rupee depreciation alone was Rs. 53 crores during the quarter under review. However, we continued to grow in the personal mobility segment, which includes two-wheeler as well as passenger car engine oils, and showed robust underlying growth.”

Mr. Kirpalani said, “Despite the challenging environment, we were able to recover almost all the increase in the cost of goods through improved sales mix and judicious pricing actions. We continued to invest in our brands, pioneering technology and marketing activities and the quarter under review saw an increase of almost 14% in the Advertising & Sales promotion spend compared to the same period last year. The quarter saw the launch of two new product brands – Castrol Activ Scooter – a dedicated engine oil for scooters and Castrol Magnatec Stop Start – an engine oil for passenger cars, especially those operating in city driving conditions. The company also launched an Oil Immersed Brake Oil (OIB) for wet brake application in tractors.” 

  Q1 Q1 Q1
Jan – Mar Jan – Mar
2014 2013 % Inc / (Dec)
       
Net Sales / Income from Operations 815.1 781.4                  4.3
 

Profit Before Tax

153.0 185.3              (17.4)
 

Profit After Tax

100.2 124.3              (19.4)