Profits Rise at Castrol India, Gulf

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Castrol India filed record profit in its second quarter, up 49 percent at Rs 281.8 crores (U.S. $44 million) compared to Rs 188.8 crores in the three months ended June 30, 2014. Gulf Oil Lubricants India Ltd. reported 1.9 percent growth year over year in its first quarter.

Castrols net income was up marginally from the year before, at Rs 923.6 crores compared to Rs 913.7 crores in the prior years corresponding quarter. Its expenditure this quarter was Rs 656.8 crores, down nearly 11 percent from the year before. Net profit for the quarter spiked 48 percent, to Rs 184.5 crores.

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The Mumbai-based producers line of Activ four-stroke motorcycle oils delivered strong performance in the two-wheeler segment, Managing Director Ravi Kirpalani said in Castrols recently released half-year 2015 earnings report.

Castrol also made a strong foray in rural markets through a rural engagement program leveraging virtual reality to engage with consumers and mechanics, he continued. The campaign has received very encouraging response from all key stakeholders.

In the passenger car segment, growth was largely delivered through Castrols Magnatec brand, which was promoted through its unique micro-marketing program. The Vecton line of commercial vehicle oils, launched during the first quarter, has been performing exceptionally well in the market, he added.

Kirpalani noted that the companys industrial business sales volume grew strongly as well, thanks primarily to new customers in wind energy and mining segments. In the core product category of metalworking fluids, [Castrol has] maintained [its] market share despite sluggish manufacturing activity and challenging competitive environment.

Gulf Oil Lubricants India Ltd. reported revenue of Rs 230.4 crores in its first quarter (the companys fiscal year begins April 1) compared to the previous years results of Rs 226.1 crores. For the quarter ended June 30, the Hyderabad-based lubes producer reported turnover of Rs 265.6 crores and profit after tax of Rs 20.5 crores.

GOLILs profit before tax grew 17 percent year over year. Gulf said the launch of its mega new-look campaign targeted at two-wheeler consumers to communicate the added benefit of its products superior pick-up resulted in an instant double digit growth in the segment. The success of this campaign will also strengthen the overall Gulf brand, the company noted.

However, while there has been positive growth in volumes and revenues, the recent price discounting to adjust to the competitive market scenario has resulted in lower growth in revenues this quarter, the company pointed out.

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