Castrol India's Q3 profit rises on persistent demand

Engine oil maker Castrol India reported a 6.7% increase in third-quarter profit on Thursday, driven by continued demand for its automobile lubrication products.

The company, in which oil major BP has a 51% stake, said profit after taxes rose to 2.07 billion rupees ($24.6 million) in the July-September quarter, from 1.94 billion rupees a year ago.

India's overall vehicle sales have been strong for the past few quarters, benefiting companies like Castrol, which generates over 80% of its revenue from the automobile lubricants market.

The company, which also makes industrial lubricants like turbine oils, said revenue from operations grew nearly 9% to 12.88 billion rupees in the quarter.

"Performance was driven by strong volume growth across categories," the company said in a statement, without giving a break up of its revenue distribution.

Its expenses grew 9.5% in the quarter, with the cost of raw and packing materials consumed, among its biggest, increasing 9%.

Castrol India's shares closed 1.8% lower ahead of results. They have risen 15.4% so far this year, while those of smaller peer Gulf Oil Lubricants India have jumped 60.6%.