Castrol India, a manufacturer of engine oil, disclosed a 25% increase in its fourth-quarter earnings on Thursday, attributing the boost to increased demand for its automotive lubrication offerings. The company, primarily reliant on passenger and commercial vehicles for the majority of its business, experienced favorable outcomes from the consistent expansion in automotive sales and ongoing maintenance requirements in the world's third-largest automobile market.

According to an exchange filing, Castrol India revealed a profit after tax of 2.42 billion rupees ($29.2 million), marking an increase from 1.93 billion rupees recorded a year ago. Simultaneously, the company observed a 7.5% growth in revenue, reaching 12.64 billion rupees. Chief Financial Officer Deepesh Baxi mentioned in a statement that the company anticipates consistent inflation and a positive shift in consumer confidence. Castrol India aims to expand its presence in rural India and connect with two-wheeler owners affected by inflation. 

However, expenses experienced a marginal 1.5% increase, primarily driven by employee-related costs and unspecified additional expenditures, even though input costs remained largely stable. The company did not provide details on the nature of these additional expenses. Castrol India's shares concluded 3.6% lower before the release of the financial results.