OPM was up 420 bps to 31.6% leading to a 43% rise in operating profits to Rs 306.6 crore as cost of material consumed as a percentage of net sales decreased 10 bps to 39% in the quarter ended December 2017 from 39.1% in the corresponding previous year period while employee benefit expenses fell 50 bps to 5.3%, and other expenses fell 200 bps to 18.4% while purchase of stock in trade decreased 230 bps to 5%.

Other Income decreased 54% to Rs 16.4 crore in Q4CY17 from Rs 35.9 crore in Q4CY16 while interest cost was negligible at Rs 0.6 crore and depreciation fell 5% to Rs 10.3 crore. As a result PBT was up 31% to Rs 312.1 crore. Effective rate of tax rose to 37% from 36.6% leading a 30% increase in PAT to Rs 196.7 crore.

For CY'17 Net Sales of the company was up 6% at Rs 3584.3 crore compared to corresponding previous year while bottomline rose 3% to Rs 691.8 crore. OPM fell 80 bps to 28.8% leading a 3% rise in operating profits to Rs 1033 crore. Other income decreased 4% to Rs 83.7 crore while interest cost was down 20% to Rs 1.2 crore and depreciation up 1% to Rs 45.5 crore. PBT as a result rose 3% to Rs 1070 crore. Effective rate of taxes fell to 35.3% from 35.6% leading a 3% increase in PAT to Rs 691.8 crore.

Commenting on the results, Omer Dormen, Managing Director said: "I am absolutely delighted with the performance delivered during the year under review and especially with the remarkable turnaround during the second half of the year, with stand-out performance during the last quarter of the year."

"The company has announced a strong set of results for fourth quarter with Profit Before Tax as well as Profit After Tax both growing by 30.7% and 30% respectively as compared to the same period in 2016. The performance is indeed even more creditable considering the strong headwinds we faced from the external environment for large part of the year.

"The strong volume growth for the second successive year, in a really challenging environment, gives us the confidence to believe that our growth strategy is well on track. The company continues its focus on personal mobility and power brands, combined with aggressive distribution expansion and customer acquisition, underpinned by consistent investment in brand, technology and customer service and advocacy. One of our key objectives was to provide premium customer experience at every touch point and we were largely successful in achieving this."

With the stabilization of the business environment post GST launch, the Company is confident that the actions it continues to take, will deliver results. We are beginning to see signs of recovery in the Indian economy and with the structural reforms continuing, we should see an increase in sales of vehicles as well as freight movement.

Aligned to our long term strategic direction and on the back of continued investments in our technology and brands, aggressive growth plans, innovative marketing programmes and delivery of premium customer experience at multiple touch points, Castrol India is confident about continuing to deliver robust business performance.

The scrip is currently trading around Rs 188 on the BSE