1:1 bonus from Castrol

February 8: The directors of Castrol India have recommended a liberal bonus issue in the ratio of one new share for every one share held. Further, the board has recommended the payment of a final dividend of 20 per cent Rs 2 per share, making a total of 150 per cent Rs 15 per share for the financial year ended 1998.

During the financial year, sales increased by 8.7 per cent to Rs 1,079.21 crore Rs 993.04 crore and the net profit by approximately 12.7 per cent to Rs 178.37 crore Rs 158.16 crore. The gross profit amounted to Rs 227.54 crore Rs 212.46 crore. The provision for depreciation was at Rs 8.43 crore Rs 6.80 crore and for taxation amounted to Rs 40.75 crore Rs 47.50 crore. The increase in profits was a result of lower tax payable, facilitated by increased production at Silvassa where the company started operating a second shift.

The company has moved over to a new system of distribution which will help it to reach its products directly to a larger number od dealers. The benefits ofthis change in terms of sales would be seen in 1999.

To provide a better focus to the business and improve customers service levels, the company has organised itself into four business streams in line with its global market segments. This should enable it to respond quickly to the changing needs of its customers.