Castrol India Limited announced its financial results for the period between January and March 2012. During this period, the Net Sales of CIL improved by 4.1% to Rs. 781.7 crores from Rs. 750.7 registered in the same period last year. However, the Profit After Tax decreased by 10.0% to Rs. 122.9 crores from Rs. 136.6 recorded for the quarter January to March 2011. The Profit Before Tax also reduced by 9.6% to Rs. 183.6 crores from Rs. 203.0 registered for the same time period in 2011.
Speaking about this, Mr. Ravi Kirpalani, Chief Operating Officer and Automotive Sales Director, said that “We continue to operate in a challenging environment. Since the second half of last year, the lubricant market growth has been slower due to the economic slow down and inflationary pressures. This has been compounded by continuing input cost pressure and rupee depreciation which have impacted margins.”
He further stated that in spite of the difficult circumstances, CIL continues to invest in the manpower, brand, marketing strategies and improvement in technology. Between January and March this year, the company launched its new product Castrol GTX Modern Engine that has been designed especially for the latest petrol engine cars. In addition, CIL relaunched its flagship brands Castrol CRB Plus and Castrol CRB Turbo with Durashield Boosters that improves the engine life up to two-fold. Talking about the future plans of the company, Mr. Ravi Kirpalani said that “The company is focusing on driving volume growth through increasing distribution reach and strengthening advocacy amongst key stakeholders.”
The increasing cost of the raw material and volatility of the Indian rupee is still a cause of concern, in the short term period. In contrast, the company is positive with respect to its long term growth potential. The long term growth is dependant upon two major factors, namely the growth prospects for the automotive and non-automotive lubricants in the domestic market and the strong competitive position of the company. CIL enjoys a strong foothold in the domestic market owing to its innovative brands, technology leadership and wide distribution network, along with the undying commitment of its diligent team.
