BENGALURU (Reuters) – Automotive lubricant manufacturer Castrol India Ltd reported a flat profit for its third quarter on Monday, as price increases helped it counter the impact of higher input costs and soaring inflation.
Net profit came in at 1.87 billion rupees ($22.59 million) for the three months ended Sept. 30, compared with 1.86 billion rupees a year earlier. Revenue from operations increased 4.5% to 11.21 billion rupees.
“The third quarter witnessed forex pressures along with extreme inflationary pressures arising from volatile crude oil prices, leading to rising costs of additives and base oil,” Managing Director Sandeep Sangwan said in a statement.
Total expenses increased 6.5%, with the cost of raw and packaging materials jumping 13.1%. Castrol had raised prices twice in the first half of the year to cushion the impact of higher raw material prices.
In an electric push earlier this year, the company signed a partnership with MG Motor India and Jio-bp to set up four-wheeler electric vehicle (EV) charging infrastructure and expand its existing auto service network to cater to EV Customers.
($1 = 82.7780 Indian rupees)
(Reporting by Ashish Chandra in Bengaluru; Editing by Subhranshu Sahu)
