Castrol India Limited delivers strong growth in 2Q 2024

Castrol India Limited (BSE: 500870; NSE: CASTROLIND) has announced its results for the second quarter ended 30 June 2024. The Company adheres to the calendar year (January to December) for its financial reporting.

During the second quarter (2Q), from April to June 2024, the Company’s Revenue from Operations grew at 5% to ₹1,398 Crores, compared to ₹1,334 Crores in the corresponding quarter in the previous year (2Q 2023). When compared to the sequential quarter (1Q 2024), it rose 6% from ₹1,325 Crores. Profit Before Tax for 2Q 2024 stood at ₹314 Crores, a gain of 3% compared to ₹305 Crores in 2Q 2023, and 8% higher than ₹292 Crores in 1Q 2024.

For the first half (1H) of the year ended 30 June 2024, the Company recorded Revenue from Operations of ₹2,723 Crores, marking a growth of 4% compared to ₹2,628 Crores in 1H 2023. Profit Before Tax for the period stood at ₹606 Crores, marking a growth of 2% from ₹593 Crores in 1H 2023.

“We are proud of our strong second-quarter performance, driven by product launches like the Castrol EDGE range and marketing campaigns featuring Shah Rukh Khan,” said Sandeep Sangwan, Managing Director of Castrol India Limited. “Our balanced focus on volumes and margins, along with our commitment to innovation and brand building, has driven revenue growth. As we celebrate 115 years in India, we remain dedicated to delivering innovation, performance, reliability, and protection. Notably, our presence in major sports properties like the IPL, T20 World Cup, and Wimbledon underscores our strong brand visibility.”

“Looking ahead, ongoing innovations in products and services, coupled with strategic brand investments, will sustain our growth momentum. Potential stabilisation of input costs in the latter half of the year could signal a positive trend for the industry,” Mr. Deepesh Baxi, Chief Financial Officer, Castrol India Limited, concluded.

The Board of Directors of the Company have declared an interim dividend of ₹3.5 per share, which will be paid on or before August 28, 2024.

Key highlights from Castrol India Limited in 2Q 2024 included:

Product focus:

• Launched three new variants of Castrol EDGE for SUVs, hybrids and European vehicles, an on-demand performance product range through a 360-degree marketing campaign featuring Shah Rukh Khan.
• Expanded Auto Care range with the launch of Shiner Sponge for bike and car care segment, reinforcing our commitment to an enhancing product range. The entire range is now available in 45k+ outlets and ecommerce platforms.
• Launched Castrol CRB TURBOMAX+ CK4, a top-tier truck lubricant rigorously tested on key Indian OEM vehicles for 100000 kilometers.

Brand focus:

• Castrol POWER1 presents India’s Ultimate MotoStar on MTV, the country’s top motorcycling talent search, has concluded. From over 50k registrations, three winners are now set to train at Castrol Honda LCR MotoGP™ Team’s racing facility in Europe.
• Castrol CRB TURBOMAX Pragati Ki Paathshaala #BadhteRahoAage campaign wrapped up, empowering over 12,000 truckers across 35 cities.
• Sports associations play a pivotal role in expanding audience engagement and brand visibility. Sponsored the television broadcast of ICC WC T20 and Wimbledon, leveraging their influence to enhance our reach.

Focus on Bharat:

• To enhance distribution and broadened market presence, we added over 2000 new outlets in rural areas. With 534 Castrol Auto Service outlets, 28,435 bike points, ~9,000 multi-brand car workshops, and our extensive dealer network, we now have a national footprint exceeding 135k outlets.
• Inaugurated a state-of-the-art India Technology Centre at our Patalganga plant that will help boost the innovation and development capabilities in the region. The facility capability includes blending and analytical testing with modern equipment. In future, the laboratory will have latest testing capabilities for EV and data center to cater to the needs of India market.

Community focus:

• Reinforcing our commitment to sustainability, our facility in Silvassa, Gujarat:
  • Commissioned a Rainwater Harvesting Project aimed at collecting and reusing 800-1000 KL water, annually, thus reducing freshwater consumption.
  • Set up a Solar Power Plant, achieving a 45% reduction in on-site CO2 emissions with 1,200 panels over 10,000 square meters.

People & Culture:

• Kedar Lele to take over as Managing Director on November 1, 2024, succeeding Sandeep Sangwan, who will assume a larger global role within Castrol globally.
  • Welcomed the new group of Early Career Graduates to our Castrol India family.
  • Paharpur plant marks seven years of DAFWC-free operations.
  • Launched #MeriCastrolKahaani, 30-second employee stories that truly capture the spirit of Castrol, on our social media channels.

Summary of CIL financial results and comparison to last year & quarter

*CIL follows a calendar year basis (CY: January to December) for financial reporting