MUMBAI, JULY 22: Castrol India Ltd has posted a 10.3 per cent growth in profits for the first half of this fiscal at Rs 96 crore on a total sales turnover of Rs 573 crore, 8.5 per cent higher than the corresponding period last year.The lubricant major has declared a five per cent interim dividend on an expanded capital base of Rs 123.5 crore, following the 1:1 bonus issue.The increase in corporate tax rates in the recent budget has adversely impacted the growth in net profits during the period, Castrol said in a statement here today.Profit growth, during the same period, was stronger as a result of improved sales realisation and lower raw material costs. During the three months ended June 30, sales increased by 11 per cent and profit before tax (PBT) by 13.6 per cent as compared to 5.5 per cent and 7.8 per cent, respectively in the first quarter of 1999.Profit growth, during the second quarter was stronger as a result of improved sales realisations and lower raw material costs, it said adding thenew distribution system was bringing in significant benefits in coverage and penetration, which would get reflected in primary volume growth in the months to come.Business streaming has led to better understanding of consumers that has resulted in volume and value growth in each principal business and to the identification of new opportunities for future profitable growth and market share gains, it added.
