UPDATE: Castrol India 2Q Net Profit Rises 17% On Higher Sales

15th Jul 2010 14:26

(Adds earnings details, executive's comments) By Eric Yep Of DOW JONES NEWSWIRES MUMBAI (Dow Jones)--Castrol India Ltd. (500870.BY) said Thursday its net profit for the second quarter rose 17%, helped by marketing initiatives that boosted sales of its lubricants. Net profit for the April-June period increased to INR1.50 billion from INR1.28 billion a year earlier. Net sales grew 17% to INR7.44 billion from INR6.38 billion, the company said in a statement. Total expenses also rose 17%--to INR5.25 billion from INR4.49 billion. Sales of its automotive lubricants grew 16% to INR6.51 billion, and of non-automotive products jumped 23% to INR933 million. Castrol India is a 71%-owned subsidiary of U.K.-based BP PLC's Castrol Ltd. unit. The Indian company focused on a long-term strategy of volume growth, improving margins and controlling costs, Vice Chairman Naveen Kshatriya said in the statement. "The company's performance was aided by a buoyant economy and sustained investment in its brands," Kshatriya said. He said that in the first half of 2010 the company conducted marketing activities such as Castrol's global 2010 FIFA World Cup sponsorship and local programs for customers. The company said its margins could be hurt as raw material prices are expected to harden with crude oil at about $75 to $80 a barrel. -By Eric Yep, Dow Jones Newswires; 91-22-6145-6110; [email protected] (END) Dow Jones Newswires July 15, 2010 09:26 ET (13:26 GMT)