Castrol India reported double digit profit growth, and first quarter operating profit for Balmer Lawrie jumped, each for the quarter ending June 30.
Castrol India reported a 19 percent increase in net profit year on year to Rs 164.2 crores (approximately Rs 1.6 billion or U.S. $23.4 million) for the quarter that ended June 30, primarily driven by higher volume as well as improved margin. The companys net profit was Rs 137.9 crores in the same quarter in 2017. Net profit for the January to June 2018 period also grew by 9 percent to Rs 346 crores, up from 316.9 crores in the same period in 2017.
Total revenue from operations in the quarter ended June 2018 went up to 1,034.5 crores, compared to 1,023.2 crores in the same quarter last year. However, total revenue in the first half – January to June 2018 – came down to 1,984.4 crores, compared to 2,053.8 crores in the first six months of 2017. Revenue from operations during the quarter and the half year of 2018 is not comparable with the year 2017 numbers due to changes in the treatment of indirect taxes after implementation of the Goods and Services Tax system, the company said in its statement. Excluding this impact, revenue from operations in January to June 2018 period increased by 17 percent, compared to the same quarter in 2017. For the first half of this year, such revenue increased by 11 percent, compared to the year-earlier period.
Castrol India Managing Director Omer Dorman said, Approximately 80 percent of our growth is due to the new products launched during the last nine months, and despite the challenging cost environment, we have grown faster than the automotive lubricants market.
While personal mobility continues to be the key strategic growth driver, the focus on commercial vehicle engine oil portfolio is also delivering results with record volume growth driven by the launch of new products and aided by a favorable economic environment, with emphasis on infrastructure development, he added.
On the future outlook, Dormen said that with the continued volatility in crude oil price and steep depreciation of the Indian rupee, the company expects a challenging second half, but remains optimistic due to continued investments in technology and brands, aggressive expansion of distribution network, innovative marketing programs and delivery of a premium customer experience across multiple touch points.
Balmer Lawrie & Co. – one of Indias largest grease suppliers – said first-quarter standalone operating profit from its greases and lubricants segment jumped 35 percent year on year to Rs 9.6 crore (Rs 96 million or U.S. $1.4 million).
However, revenue for the segment fell 19 percent to Rs 100.4 crore in the quarter that ended 30 June 2018, the supplier of Balmerol-branded products said in a regulatory filing. The company didnt specify the reason for the decline in revenue.
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