Castrol net jumps 45% to Rs 381cr

MUMBAI: Castrol India has reported a 45% jump in profit after tax for the year ended December 31, 2009 at Rs 381.1 crore against Rs 262.3 crore in
the previous year. Net sales for the fiscal rose 5.1% to Rs 2,318.2 crore from Rs 2,205.7 crore, a company release said.

In the fourth quarter, the company clocked a PAT of Rs 80.8 crore, up 72% over the year-ago figure of Rs 47 crore. Net sales for the quarter was up 14% at Rs 609.5 crore.

Naveen Kshatriya, regional V-P, Asia & Pacific, BP Castrol Lubricants, told ET NOW, this newspaper’s business news channel, the company has done well in the last quarter of the fiscal due to the combination of a couple of things. “First, there is an uptrend in the economy and that’s reflecting in our volumes. Second, we have been very diligent in terms of execution of our strategy, focusing on specific areas and investing heavily in brands... I mean in terms of introducing new products or uplifting the quality of our products,” Mr Kshatriya said.

Ravi Kriplani, COO & automotive director, Castrol India, told ET NOW that the company has seen its volumes bounce back in the fourth quarter. “It’s a combination of better volumes, better margin management and better cost,” he said.

The board of directors of the company has announced a bonus issue in the ratio of 1:1 and recommended a final dividend of Rs 5 per share and a special dividend of Rs 10 per share for FY09. This dividend is in addition to an interim dividend of Rs 10 per share for the full-year 2009.

Mr Kshatriya said the bonus issue was in recognition of the company’s centenary year. “This will improve the liquidity in the market and will enable investors to participate in our business a bit more,” he said.

Mr Kshatriya said the company commands around 21% share of the Indian automotive lubricant market. “But if you look at the areas where we focus on... in the new generation truck oils, in motor cycle oils, in the premium passenger car oils, we have actually shown a growth in market share,” he added. “We will continue to improve our shares in the strategically important areas, Mr Kshatriya said. link...