Automotive lubricants major, Castrol India, has clocked a 26 per cent increase in its Profit After Tax (PAT) at Rs 82.8 crore in Q2 FY08 as against Rs 65.9 crore in the year-ago period.
Its net sales in the reporting quarter was up 15 per cent at Rs 621.4 crore as against Rs 540.1 crore in the year-ago period, a press release issued here today stated.
The company has declared an interim dividend of Rs 6 per share for the year ending December 31, 2008.
Castrol India's Managing Director, Naveen Kshatriya, said, "Castrol India has achieved a record performance in this quarter as a result of higher volumes, improved price realisation to recover sharply escalating cost of goods and better procurement."
Looking ahead, the company said that the overall economic turmoil due to high inflation, interest rates, fuel prices, reduced economic activity among others would take its toll on overall lube volume consumption, at least in the short-to-medium-term, primarily in the B2B customer base.
Recognising the tough market conditions, the company would focus on creating superior value for its customers by upgrading both its product and service offers, the company said.
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The company would also endeavour to grow in its profitable volume segments, focusing even more on value growth through superior, high-technology products, the release said.
"Should base oil and other input costs escalate rapidly, the margins might be impacted in the short-term due to lag in recovery," the company said.