Castrol India Net Profit Down By 19% For The Quarter Ending June 2014

Castrol India announced its Q2 results during the trading hours. The company's net profit was down by 19% on yearly basis. The decline in the net profit was due to increase in the expenditure, while the sales were up marginally.

Castrol India, one of the leading automotive lubricants manufacturers in the country announced its (company follows calendar year as financial year) results for the quarter ended June 30, 2014. The net profit of the company declined by 19% to Rs 124.4 crore against Rs 153.6 crore during the same period in the previous year. The decline in the net profit was primarily due to increase in the total expenditure as proportion to sales to 80% against 78% in the corresponding quarter of the previous year. The other income also declined by 47% to Rs 10.2 crore against Rs 19.4 crore in the previous year same quarter. The base of the net profit was higher in the previous year same quarter due to an exceptional item of 19.8 crore.

The total expenditure increased by 8.76% to Rs 734.4 crore as compared to Rs 675.5 crore in the corresponding quarter of the previous year. The sales increased marginally by 5.56%, the increase in the sales was backed by 4.94% growth in the automotive segment to Rs 804.7 crore against Rs 766.8 crore. On the similar lines the growth in the non automotive segment increased by 14% to Rs 109 crore as compared to 95.2 crore during the same period in previous year.

Castrol India Ltd has declared the interim dividend of Rs 3.50 per share. Post the announcement of the result, the shares of the company was up by 1.75% in today's trade.