Castrol India, the country's second largest lubes provider, has had a mixed first half in 2011.
Australian fast bowler announced as the latest Castrol Ambassador Image: Castrol India |
Revealing its Q2 results, the Castrol UK-owned subsidiary showed pre-tax profits down seven percent at Rs211.7 crore ($46m although net sales improved by six percent at Rs790 crore ($173m). Despite the profits slip, the first half of 2011 showed a marginal improvement in pre-tax profits - up just one percent at Rs279.1 crore ($61m) on a 10% sales uplift of Rs1540.7 ($337.5m).
Castrol India blamed "challenging" base oil and additive costs for the marginal results, stating that protecting price and focusing on cost efficiencies had been its main concern.
The company continued its high profile marketing campaigns, not only for its CTX, Active and CRB Turbo brands, but also in its sports presence through its ICC Cricket World Cup sponsorship and sporting brand Ambassadors, the latest being Aussie fast bowler Brett Lee. In addition, it turned to manufacturing partnerships to strengthen sales, sealing tie-ups BMW India and ACE Micromatic Group (India's largest machine tool manufacturer as well announcing recent consolidation including the Tondiarpet plant closure.
In its forecast for the rest of the year, Castrol India said it expects stronger performance as costs against demand find a degree of equilibrium.