Castrol Q3 net down 26 pc at Rs 22.23 cr

	Financial Daily from THE HINDU group of publications Tuesday, October 30, 2001

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Castrol Q3 net down 26 pc at Rs 22.23 cr

Our Bureau

MUMBAI, Oct. 29

CASTROL India Ltd has registered a 26 per cent drop in net profit at Rs 22.23 crore in the quarter ended September 30, 2001 as against Rs 28.17 crore in the corresponding period last year.

The board of directors of the company has approved the scheme of amalgamation of Tata BP Lubricants with effect from January 1, 2001. The company has approached the High Court to convene a necessary meeting to carry the process forward.

According to Castrol India, the decline in net profits is attributable to the reduced Income-Tax Act benefit under Section 80IB from April 1, 2001 as well as deferred tax provision for the nine months period.

Net sales has increased to Rs 294.6 crore (Rs 290.07 crore). Other income has dropped to Rs 2.09 crore (Rs 2.35 crore).

Total expenditure has increased to Rs 257.89 crore (Rs 253.68 crore). Interest has dropped to Rs 1.2 crore (Rs 1.51 crore) while depreciation has increased to Rs 3.15 crore (Rs 2.88 crore). Provision for tax has risen to Rs 10.16 crore (Rs 6.18 crore).

During the nine months ended September 30, 2001, the company posted a net profit of Rs 83.61 crore as compared to Rs 106.29 crore in the corresponding period last year.

Net sales was at Rs 944.73 crore (Rs 901.92 crore). Other income dropped to Rs 7.55 crore (Rs 16.05 crore). According to the company, the other income is lower than the corresponding period due to a one-time non-recurring gain on sale of investments, net interest impact of Rs 7.98 crore in the first quarter of 2000.

In line with the amendments to the listing agreement as directed by SEBI relating to Accounting for Taxes on Income, the provision for deferred tax of Rs 2.08 crore has been made for the nine months ended September 30, 2001. The deferred tax liability of previous year will be accounted at year-end 2001.

The company has increased its market share in the two-wheeler motorcycle and passenger car segments, by relaunching some of its leading brands like Castrol Super TT and Castrol GTX Extra.