Castrol India rose 0.62% to Rs 309.45 at 10:55 IST on BSE after net profit jumped 21.9% to Rs 104.50 crore on 0.1% growth in income from operations to Rs 719.60 crore in Q3 September 2013 over Q3 September 2012.
The company announced the third quarter results on Wednesday, 16 October 2013.
Meanwhile, the BSE Sensex was up 59.02 points, or 0.29%, to 20,606.64.
On BSE, 12,000 shares were traded in the counter compared with average volume of 25,660 shares in the past one quarter.
The stock hit a high of Rs 311.85 and a low of Rs 308 so far during the day. The stock hit a record high of Rs 371.45 on 4 June 2013. The stock hit a 52-week low of Rs 285.25 on 18 December 2012.
The stock had underperformed the market over the past one month till 15 October 2013, sliding 6.51% compared with the Sensex's 4.13% rise. The scrip had also underperformed the market in past one quarter, falling 8.04% as against Sensex's 2.56% rise.
The large-cap lubricant oil maker has an equity capital of Rs 494.56 crore. Face value per share is Rs 10.
Commenting on the third quarter results, Ravi Kirpalani, Managing Director, Castrol India, said: "Despite the unfavorable economic scenario, including significant rupee depreciation, the third quarter results show improved gross margin on account of higher sales realisation, lower base oil prices and effective cost management strategy. The business environment continues to remain highly challenging. Continuing rupee depreciation, credit crunch and overall industry slowdown hampered economic growth. The B2B (business to business) and in particular, the building and construction segment, were under pressure and witnessed lower volumes during the quarter under review. This volume drop was partially offset by a strong performance in the personal mobility sector i.e. the passenger car and two wheeler engine oil segments.
With regard to the future business outlook, Castrol India said that continued economic headwinds, rupee volatility and high crude and base oil prices are likely to impact the company's growth and margins in the short term. In the longer run, however, the management is confident about the lubricant market and business growth. Castrol India said that the company is in a strong position to benefit from growth opportunities on account of its strong brands, enduring relationships with key stakeholders and continued commitment of its staff.
Castrol India manufactures and markets a range of automotive and industrial lubricants. It markets its automotive lubricants under two brands - Castrol and BP. The company has leadership positions in most of the segments in which it operates including passenger car engine oils, 4-stroke oils and multigrade diesel engine oils. The company has three manufacturing plants, including a state-of-the-art plant in Silvassa. The company reaches its consumers through a distribution network of over 270 distributors, servicing over 91000 retail outlets.
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