In spite of a massive fall in input cost, lubes major Castrol India today reported a tepid 6.7 per cent growth in net income at Rs 140.8 crore for the fourth quarter ended December.
Profit from operations during the quarter rose 3.5 per cent to Rs 202.9 crore, the company said in a statement.
Castrol follows January-December financial year.
For the full year, net income rose 29.7 per cent to Rs 615.2 crore.
"This is an outstanding overall performance, driven by momentum in the personal mobility segment, continued premiumisation of our portfolio and judicious margin and cost management," the company's Managing Director Omer Dormen said.
On retail sales growth, he said Castrol saw strong volume and value expansion in its two-wheeler and passenger car engine oil categories during the year under review.
The company sells Activ brand of lubes for the two-wheeler segment, Magnatec for passenger cars and the Vecton, launched during the reporting fiscal, for commercial vehicles.
However, the industrial business was challenging due to the tough external environment in the manufacturing sector and increased competitive pressures, which impacted the overall volume growth, Dormen said.
On the market outlook, he said although the drop in crude price has translated into lower base oil cost, "we are likely to experience volatility in the cost of goods due to volatile rupee.
