At Rs 282.1 crore, profit before tax is up by 5 percent for the January-March 2018 period, one which saw the company launch many new products
04 May 2018 | 7684 Views | By Autocar Pro News Desk
Lubricant major Castrol India has reported strong first quarter CY2018 results. In the January to March 2018 period, profit before tax was up by 5 percent at Rs 282.1 crore compared to Rs 269.2 crore in the year-ago period. On a comparable basis without the change in indirect tax treatment, net sales in Q1 ...
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Lubricant major Castrol India has reported strong first quarter CY2018 results. In the January to March 2018 period, profit before tax was up by 5 percent at Rs 282.1 crore compared to Rs 269.2 crore in the year-ago period. On a comparable basis without the change in indirect tax treatment, net sales in Q1 2018 increased by 5 percent at Rs 927.1 crore, driven by volume growth across categories.
Commenting on the results, Omer Dormen, managing director, Castrol India, said: “I am delighted with the performance delivered during the quarter under review. We continue to build momentum on our strong performance and we have been delivering consistent growth over the last two years. Despite the sharp rise in input costs during the quarter under review, we were able to deliver a good set of numbers which shows our strategy of profitable volume growth is well on track.”
“While we continue our focus and investment primarily in the personal mobility segment, we are also providing greater thrust on the commercial segment by broadening our participation in select mass market segments. Being the market leader, Castrol CRB brand commands strong consumer loyalty and we are sure that with the increased focus and investment in this segment, it will significantly contribute to our growth aspirations.”
Aggressive growth strategy
In line with its growth strategy to continuously innovate to deliver differentiated, future-ready products, Castrol India launched several new products during Q1 2018.
Targeting the fast growing passenger car segment in the country, the company launched Castrol Magnatec engine oil with Dualock technology, specially designed to provide 50 percent better engine protection especially in congested city driving conditions. Likewise, for the commercial vehicle segment, there was the rollout of Castrol CRB Turbomax with DuraShield boosters, which delivers up to two times longest engine life.
The company says it created higher visibility for its key brands through impactful media campaigns and a focused retail transformation drive while continuing its efforts on customer acquisition and distribution expansion.
The first quarter saw it continue to build strategic OEM partnerships and signed a three-year contract with Ford India to supply engine and transmission oils for all Ford vehicles produced in India for domestic and export markets. In recognition of its commitment to quality, Castrol India’s Silvassa Plant was awarded Q1 certification by Ford, which makes it the first lubricants plant in India to receive this award.
Growth outlook
Castrol India says with the continued increase in crude oil price and depreciation of the Indian rupee, there is likelihood of further volatility in the cost of goods. However, it continues to remain optimistic about the Indian lubricant market and is confident about delivering robust business performance aligned to its long term strategy. This is underpinned by continued investments in technology and brands, aggressive expansion of distribution network, innovative marketing programmes and delivery of premium customer experience across multiple touch points.