Feb 3 (Reuters) - Engine oil maker Castrol India posted a 9.9% drop in fourth-quarter profit on Tuesday, as higher raw material costs and a one-time charge outweighed the boost from sustained demand for its automotive lubricants.
The company's profit after tax fell to 2.45 billion rupees ($27.2 million) in the quarter ended December 31, from 2.71 billion rupees a year before.
The results included a one-time charge of 225.3 million rupees tied to India's recently enacted labour code.
Castrol India supplies lubricants to major automakers, including Maruti Suzuki and Hero MotoCorp.
Demand for its products was supported by a 17.6% rise in India's vehicle sales during the quarter.
The company's revenue from operations grew 6.4% to 14.4 billion rupees, but total expenses rose 9.2%, driven by an 8% increase in the cost of raw and packing materials.
The engine oil maker, in late December, said that Canada Pension Plan Investment Board and U.S. private equity firm Stonepeak would launch an offer to buy up to 26% of Castrol India, following their deal to acquire the business from BP, giving Stonepeak majority control of the company.
($1 = 90.2130 Indian rupees)
(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)
