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Lubricant maker Castrol India is planning to invest ₹140 crore at its Silvassa plant over the next two years in order to enhance its installed capacity by 50 per cent.
The company, which has posted an 8 per cent increase in its net profit to ₹212 crore for the fourth quarter ended December 2018, currently produces around 80 million litres annually at the plant.
“In line with our strategic agenda to drive growth and be future-ready, the board has approved an expansion investment plan of ₹140 crore at our Silvassa plant. This investment, spread over the next two years, will scale up capacity at the facility by 50 per cent,” Castrol India Managing Director Omer Dormen said in a statement.
The company had reported a net profit of ₹197 crore during the corresponding period of the previous year.
Total revenue rose to ₹1,059 crore for the fourth quarter as compared with ₹986.7 crore during the October-December period of 2017, Castrol India said in a statement.
The company follows a January-December financial year.
For 2018, the company posted a net profit of ₹708.3 crore as compared with ₹691.8 crore in 2017.
Total revenue for the year rose to ₹3,988.9 crore in 2018, against ₹3,935.2 crore during the year-ago period.
“2018 marked another year of solid performance as we recorded consistent growth for the third consecutive year. Continuous investment in our people, brands, distribution network, customer acquisition and advocacy efforts has helped us deliver on all our strategic priorities enabling us to grow ahead of the market, especially in retail, and to register profitable volume growth,” Dormen said.
The company was able to protect its margins through appropriate pricing interventions and rigorous cost management despite an extremely volatile input cost environment, he added.
The board has also recommended a final dividend of ₹2.75 per share for the financial year ended December 31, 2018.
Shares of Castrol India were trading 3.31 per cent down at ₹157.70 apiece on the Bombay Stock Exchange (BSE).
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