Commenting on the first quarter results, Mr. N. Kshatriya, Managing Director, said: “Considering the acutely adverse economic environment in January-March 2009, with slowdown across industries, the company’s financial results are satisfying, especially in view of the fact that Q1 2008 as a reference base was a record first quarter. In spite of significantly reduced volumes, we maintained profits and improved cash flow. Volumes declined during the quarter because of reduced commercial transportation and manufacturing activity, key drivers for lubricant consumption. However, the unit margins improved with the benefit of lower material costs, better product mix and improved efficiencies in value chain. With aggressive cost action, the bottom line was protected”.
The company’s various margin retention and cost control initiatives are already paying dividends. Its continued focus on the personal mobility segment of cars and two-wheelers is yielding results.
Castrol continued its focus on bringing the benefits of “synthetic” technology to the Indian lube consumer through its flagship brand CRB and CRB Turbo. It also undertook two high impact, innovative promotional activities – Power1 Passion Hunt for passionate bikers and Golden Spanner promotion for car mechanics.
Building on its cricket credentials, the company successfully launched an innovative Castrol Index website. In the business customer space, the company continued to strengthen its existing relationships with key auto manufacturers.
The company has joined hands with Tata Motors to co-engineer a special oil for its new Nano. Castrol oils will be used as first fill as well as service fill for all Nano cars. It also strengthened its position in the new European car segment with a new partnership agreement with Volkswagen.
Castrol continues its efforts for promoting road safety and is leading the corporate sector in developing new standards of road safety for its contractors and employees. In recognition of this effort, the company was awarded the WIAA Road Safety Award for “outstanding efforts in promoting the cause of road safety.”
