OPM was down 20 bps to 29.6% leading to a 4% rise in operating profits to Rs 274.3 crore as cost of material consumed as a percentage of net sales increased 290 bps to 43% in the quarter ended March 2018 from 40.1% in the corresponding previous year period while employee benefit expenses fell 60 bps to 4.9%, and other expenses rose 30 bps to 18.4% while purchase of stock in trade decreased 230 bps to 5%.

Other Income increased 23% to Rs 22.8 crore in Q1CY18 from Rs 18.5 crore in Q1CY17 while interest cost was negligible at Rs 0.7 crore and depreciation rose 16% to Rs 14.3 crore. As a result PBT was up 5% to Rs 282.1 crore. Effective rate of tax rose to 35.6% from 33.5% leading a 2% increase in PAT to Rs 181.8 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 delighted with the performance delivered during the quarter under review. We continue to build momentum on our strong performance and we have been delivering consistent growth over the last two years. Despite the sharp rise in input costs during the quarter under review, we were able to deliver a good set of numbers which shows our strategy of profitable volume growth is well on track."

"Whilst we continue our focus and investment primarily in the personal mobility segment, we are also providing greater thrust on the commercial segment by broadening our participation in

select mass market segments. Being the market leader, Castrol brand commands strong consumer loyalty and we are sure that with the increased focus and investment in this segment,

it will significantly contribute to our growth aspirations."

With the continued increase in crude oil price and depreciation of the Indian rupee there is likelihood of further volatility in the cost of goods.

Castrol India continues to remain optimistic about the Indian lubricant market and is confident about continuing to deliver robust business performance aligned to its long term strategy. This is underpinned by continued investments in technology and brands, aggressive expansion of distribution network, innovative marketing programmes and delivery of premium customer experience across multiple touch points. CRB brand commands strong consumer loyalty and we are sure that with the increased focus and investment in this segment, it will significantly contribute to our growth aspirations."

The scrip is currently trading around Rs 186 on the BSE.