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Castrol India recorded a 5.1% increase in the profit of the second quarter Tuesday, fueled by a constant demand for its car and industrial lubrication products.The producer of oil and engine industrial lubricants, owned by the majority of BP, recorded a profit after the taxes of 2.44 billion of rupees ($ 27.8 million) for the quarter closed to 30 June, compared to 2.32 billion of rupees a year ago.
The revenue from the operations grew by 7.1% to 14.97 billion of rupees, while total expenses increased by 6.6%, led by a 3.2% increase in the costs of raw materials.
Sales of detailed vehicles of India increased by almost 5% on an annual basis during the quarter, raising the demand for companies such as Castrol, which generates about 80% of its revenues from the automotive sector.
Two -wheeled sales increased by 5.02%, while passenger vehicles and sales of commercial vehicles grew by about 3%and 1%respectively. Castrol India provides lubricants to the main car manufacturers in the country, including Maruti Suzuki and Hero Mototocorp.
In its latest annual report, the company has detailed plans to expand its geographical scope by expanding its product portfolio, improving its network of workshops and investing in premium lubricants brands.
“Industrial is a long -term growth area for us and we have seen encouraging traction in the first half,” said CEO Kedar Lele in a note.
The shares of the company increased by 1.6% after the results were reported, having earned 9.3% in the quarter reported.
In comparison, the actions of Peer Gulf lubricants of the Gulf Sicci India increased by 10.2% in the same period.
