Castrol India on Thursday reported a 46 per cent year-on-year jump in net profit on the back of weak crude oil prices. Net profit for the January to March quarter jumped to Rs 147 crore on sales of Rs 796 crore, the lubricant manufacturer said.
"The company delivered a record performance during January - March 2015, continuing to build on operational momentum in the personal mobility area and driven by a more favourable Cost of Goods environment," Castrol India said in a statement.
Other Income was higher on account of write back of provisions no longer required.
Ravi Kirpalani, managing director of Castrol India said, "Although the environment continues to be challenging for commercial trucks, business to business (B2B) and marine businesses, the performance continues to be driven by the personal mobility segment where underlying volumes and margins have grown over previous year."
Outlook:
According to Castrol, the drop in crude oil price will translate into lower base oil cost, but volatility in the cost of goods is likely due to volatile rupee exchange rate. Demand may start improving during the second half of the year, the company said.
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