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Castrol net up 11 pc despite lower sales

Our Bureau

MUMBAI, July 20

DESPITE a 2.1 per cent drop in sales volume, lubricant manufacturer, Castrol India Ltd could improve its performance by registering an 11.2 per cent rise in net profit at Rs 36.94 crore for the quarter ended June 30, 2001.

Net profit for the corresponding previous period was Rs 33.05 crore.

According to the company, its brand equity has helped it to record a marginal growth in profit in a sluggish lubricant market which has registered a 10 per cent negative growth in the past 12 months.

The company said net profit could have been better but for the higher tax provision made for the quarter.

Tax provision was Rs 12.65 compared to Rs 7.26 crore last year following reduced tax benefits for its Silvassa manufacturing unit.

Net sales for the quarter were Rs 346.85 as against Rs 331.20 crore in the same period during the previous year. Total expenditure was Rs 294.31 crore compared to Rs 287.52 crore during the corresponding period last year.

Depreciation in the second quarter was Rs 3.20 crore (Rs 2.86 crore) while interest was Rs 1.73 crore (Rs 2.54 crore).

Net profit for the half year ended June 30, 2001 was Rs 61.38 crore compared to Rs 78.12 crore in the same period last year.

Net sales were recorded at Rs 650.13 crore (Rs 611.85 crore). Total expenditure for the period was Rs 561.91 crore (Rs 521.03 crore).