Castrol, MJL Profits Jump in Q1


Lubricant maker Castrol India Ltd. reported an 18 percent jump in its first quarter net profit, as sales increased across all segments. MJL Bangladesh Ltd. posted a 48 percent jump in profit after taxes in the first three months of 2016.

Castrol India posted a net profit of Rs 172.4 crore (Rs 1.72 billon or U.S. $25.87 million) during the January-March 2016 period, up from Rs 146.7 crore in the same period last year.

Net sales increased 7 percent year on year to Rs 852.1 crore during the quarter, helped by higher volumes in personal mobility, commercial vehicle and industrial segments.

This is an outstanding start to the year, underpinned by volume growth across all segments, good progress on key strategic drivers and a continuing favorable cost of goods environment, Managing Director Omer Dormen said in a statement.

Dormen said that new products launched over the past year and a half have also started contributing considerably to the volume delivery. Those products include Castrol CRB Mini Truck, Castrol Vecton for heavy-duty trucks, Castrol Magnatec Stop-Start and Castrol Activ Scooter.

The company said that its Castrol Activ brand in the two-wheeler segment continued to record double-digit growth, while industrial products recorded double-digit volume growth driven mainly by new customer acquisitions and increased business share with key customers.

Dormen said that Castrol India is confident about the future, but rupee volatility and increases in base oil prices could impact the companys cost of goods going forward.

We have started seeing an upward movement in crude oil prices, and we expect base oil prices to follow, he noted.

MJL Bangladesh reported profit after tax of over 445 million taka (U.S. $5.6 million) for the first quarter – up 48 percent from 300 million taka the year before.

The Dhaka-based lubricants manufacturer and licensed supplier of ExxonMobils Mobil branded products in Bangladesh also reported net revenue of 2.02 billion taka compared to 1.9 billion taka for the same period in 2015, a 5 percent increase. MJLs reported earnings included its lubricants manufacturing and marketing business combined with its oil tanker business segment.

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