Castrol India Limited 1Q 2024 results

30 April 2024

Castrol India Limited delivers resilient first quarter in 2024

Castrol India Limited (BSE: 500870; NSE: CASTROLIND) has announced its results for the first quarter ended 31 March 2024. The Company adheres to the calendar year (January to December) for its financial reporting.

During the first quarter (1Q), from January to March 2024, the Company’s Revenue from Operations grew to 1,325 Crores, a 2% increase compared to ₹1,294 Crores in 1Q 2023, the corresponding period of the previous year. Moreover, 1Q 2024 witnessed an increase of 5% from ₹1,264 Crores in the preceding quarter (4Q 2023).

The company’s Profit Before Tax for 1Q 2024 reached ₹292 Crores, reflecting a 1% rise compared to ₹288 Crores in 1Q 2023. The Profit After Tax for 1Q 2024 amounted to ₹216 Crores, showcasing a 7% growth from ₹203 Crores in 1Q 2023.

“While we experienced initial softness in consumer demand, we delivered a 2% revenue growth, demonstrating the effectiveness of our strategic approach and the resilience of the Castrol brand,” said Sandeep Sangwan, Managing Director of Castrol India Limited. “The successful launch of innovative products last quarter significantly expanded our market share across segments. Our ongoing initiatives, including campaigns like #BadhteRahoAagey and Castrol CRB TURBOMAX Pragati Ki Paathshaala, are gaining traction and set to propel further momentum. These efforts are fueled by our unwavering commitment to brand building and cutting-edge innovation. Reaching over 12,000 truck drivers nationwide through Pragati Ki Paathshaala exemplifies the impact of our programs. Our strategic association with the iconic Shah Rukh Khan reflects our pursuit of excellence, while partnerships with powerhouses like the Mumbai Indians and KTM Cup 2024 solidify our dedication to performance-driven strategies.”

Mr. Deepesh Baxi, Chief Financial Officer of Castrol India Limited added, “Our strategic initiatives and resilient approach have positioned us well in navigating the dynamic market landscape. As we continue to focus on driving growth and maximizing value for our stakeholders, we remain committed to prudent financial management and strategic investments to sustain our momentum in the quarters ahead.”

“Looking forward, our focus remains sharp: delivering unbeatable value propositions tailored to the unique needs of our diverse customer segments. We’re achieving this through relentless product innovation and a strengthened presence in rural markets. Throughout the year, expect a continuous stream of cutting-edge products across portfolios that solidify our position at the forefront. This unwavering commitment to innovation and customer-centricity fuels our confidence in delivering sustainable growth and lasting value for both consumers and customers alike,” Mr. Sangwan stated.

Key highlights from Castrol India in 1Q 2024 included: 

• Brand building:  Welcomed Shah Rukh Khan as brand ambassador, symbolizing dedication to innovation and excellence. 
• The #BadhteRahoAage campaign and Castrol CRB TURBOMAX Pragati Ki Paathshaala empowered over 12,000 truckers in 31 cities nationwide. 
• Castrol POWER1’s 'India’s Ultimate MotoStar’ garnered over 10,000 registrations nationally, especially from tier II and III cities. Winners from the shortlisted top 18 aspiring contenders to undergo training at the LCR Honda Castrol MotoGP™ Team’s facility in Europe. 
• Strategic association with Mumbai Indians and KTM Cup 2024 as the ‘Official Performance Partner’ emphasized dedication to excellence and high-performance lubricants. 
  
  

Reaching out to rural Bharat: 

• Significantly broadened our reach, with our products now accessible in over 33,500 outlets nestled deep in the hinterland. 

After market presence: 

• Strengthening our after-market presence, we have expanded our footprint to over 9000 multi-brand passenger car workshops - showcasing a remarkable double digit growth quarter on quarter - and close to 28000 independent bike workshops, adding more than 1000 outlets quarter on quarter. 

Recognitions:

• Patalganga plant was awarded with prestigious OHSSAI Gold Award for demonstrating excellence on safety practices & performance.
• Paharpur won the Apex India Green Leaf Platinum Award for Plant Efficiency, improving further from last year’s Gold award.
• Castrol India’s Castrol Auto Service campaign won two accolades at the EMVIES 2024: Silver for the Best Media Innovation in using digital for performance and Bronze for Responsible Advertising.

Notes to editors:

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

About Castrol

Castrol India Limited is one of India’s leading lubricant companies with brands such as Castrol CRB, Castrol GTX, Castrol Activ, Castrol POWER1, Castrol MAGNATEC and Castrol VECTON, which are the brands of choice for millions of consumers and customers across the country. The Company also operates in select segments like High Performance Lubricants and metalworking fluids used in a wide variety of industries such as automotive manufacturing, mining, machinery, and wind energy. Castrol has a large manufacturing and distribution network in India with three blending plants and a distribution network of 350 distributors who reach consumers and customers through over 100,000 retail outlets. For more information, please visit www.castrol.co.in.