Castrol Q2 net profit down 15% at Rs 121 cr

Castrol, a manufacturer and marketer of automotive and industrial lubricants, reported stable revenues during the second quarter of calendar year 2012, but it disappointed with its margins and bottom line.

Revenues rose by 7.8% year-on-year to Rs 854.4 crore in the June quarter whereas profit fell by 14.7% to Rs 121 crore during the same period.

Operating profit margin declined at 20.2% in the April-June quarter as against 25% in a year ago period.

Raw material cost during the quarter went up by 16% to Rs 456 crore and advertising & sales promotion cost rose by 24% to Rs 66 crore year-on-year. Other expenditure increased 15% YoY to Rs 60 crore in second quarter of 2012.

Revenues from auto segment increased to Rs 751 crore from Rs 672.9 crore while profit dropped to Rs 149 crore from Rs 164.5 crore YoY.

Revenues from non-auto segment declined to Rs 99.8 crore from Rs 117 crore and profit too fell to Rs 18.6 crore from Rs 29.2 crore YoY.

Board of directors have approved bonus issue in the proportion of one equity share for every share held.

Source: www.moneycontrol.com

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DENIP Consultants Pvt Ltd