Castrol’s operating profit best ever in company’s history

Castrol India had a strong year in 2010, with a net profit increase of 28.7% and an 18% growth in sales. Despite rising oil costs, the lubricants maker reached an operating profit margin of 26.7% in 2010 which was a historical high. An increase in the number of cars on the road, a strong investment in brand building and a reduction in staff cost, and lowering the cost of raw materials, appear to have been the main reasons for the increase. The company spent 162 crore (US$35.9 million) on advertising and marketing in 2010 which was an increase of 8.6% from 2009. Advertising and marketing is the second largest cost for Castrol. The company is anticipating continued volume and revenue growth in 2011. Rising oil prices appear to be the company’s only concern to its continued growth. (February 24, 2011)