Castrol India Limited delivers strong growth in 3Q 2024
Performance driven by strong volume growth across categories
24 October, 2024
Castrol India Limited (BSE: 500870; NSE: CASTROLIND) has announced its results for the third quarter ended 30 September 2024. The Company follows a calendar year (January to December) for financial reporting. Castrol India delivered strong year-on-year (YoY) growth in the third quarter (3Q), from July to September 2024, with revenue and profit before tax increasing 9% and 6%, respectively. While revenue stood at ₹1,288 Crores, PBT for the quarter was recorded as ₹280 Crores.
Year-to-date performance
3Q results contribute to a robust performance for the first nine months (9M) ended 30 September 2024. Revenue from Operations for 9M 2024 stand at ₹4,011 Crores, reflecting a 5% growth from ₹3,811 Crores in 9M 2023. Similarly, Profit Before Tax for the period reached ₹887 Crores, marking a 3% increase from ₹857 Crores in 9M 2023.
“We are proud of our consistent year-on-year growth, which reflects our ability to navigate a dynamic market environment and deliver value to our shareholders. The achievement of our strong 3Q sales volumes and profits is a testament to our strategic focus and operational excellence. Our balanced approach to optimising volumes and margins, along with continuous innovation, expanding distribution infrastructure, and brand-building efforts, has driven sustained revenue growth,” said Sandeep Sangwan, Managing Director of Castrol India Limited. “Looking ahead, we will continue to prioritise product and service innovations while strengthening our partnerships with key OEMs in automotive and industrial sectors. In addition, we plan to maintain our growth momentum through strategic brand investments in the upcoming months.”
This quarter marks the end of Sandeep Sangwan’s tenure at Castrol India. Reflecting on his successful five years, he shared, “During my time serving India, we transcended lubricants with Castrol ON, introduced the autocare range, joined forces with kiMobility, and strengthened our ties with OEMs. From Shah Rukh Khan becoming the face of our brand to expanding deep into the heart of India’s vast landscape, it’s been an incredible journey that I will cherish always. I am confident that Castrol India will continue to thrive and contribute to India’s progress as a leading force in the future.”
Mr. Deepesh Baxi, Chief Financial Officer, Castrol India Limited, added, “Our strong financial performance, demonstrates the resilience of our business model and our ability to navigate challenging market conditions. The record-breaking 3Q sales volume and profits achieved this quarter is a significant milestone that reinforces our position as a market leader. We remain committed to maintaining a disciplined approach to capital allocation and maximising shareholder value.”
Key highlights from Castrol India Limited in 3Q 2024 included:
- Innovation and product expansion:
- Enhanced product portfolio: Castrol launched four new rust-preventive products—Castrol Rustilo DW 800/ 806/ 809/ 812, catering to evolving customer needs. These products offer superior performance, environmental benefits, and ease of use.
- Expanded auto care reach: The auto care product range saw new additions, establishing a footprint in over 45,000 outlets and e-commerce platforms.
- Premium product success: The recently launched Castrol EDGE variants and Castrol CRB TURBOMAX+ CK4, suitable for use across OEM engine platforms, received widespread positive market reception, solidifying Castrol’s position in the premium lubricants. The Castrol EDGE premium range is now widely available through various channels, and the successful marketing campaign with Shah Rukh Khan has driven consumer upgrades.
- Distribution and reach:
- Rural penetration: Castrol’s continued efforts to expand its distribution network have resulted in reaching 35,000 workshops and retail outlets in rural India.
- Strong national presence: With a robust network of ~580 Castrol Auto Service outlets, ~29,500 bike points, ~9,400 multi-brand car workshops, and dealers, Castrol now has a national footprint exceeding 136k outlets.
- Sustainability and Social responsibility:
- Environment commitment: Castrol’s recycled content in high-density polyethylene plastic (HDPE) bottles increased to 50%, aligning with its sustainability goals.
- Social impact: The company empowered and trained over 8000 truck drivers and more than 4000 mechanics this quarter. We have progressively impacted the lives of ~500000 truckers and mechanics since inception of our social investment programmes.
- Community engagement: Launched the Two Wheels One Life programme in Pune to promote safe two-wheeler rising among youth.
- Governance:
- Changes in Board: The appointment of Mr. Rakesh Makhija as Chairman and Ms. Satyavati Berera as Independent Director and Audit Committee Chairperson strengthened Castrol’s leadership and governance.
- Safety excellence: Castrol Chemical Management & Services (CMS) celebrated 12 years of incident free operations across multiple customer sites, highlighting its commitment to safety.
- Brand building and engagement:
- Castrol’s brand communication efforts for Castrol MAGNATEC and Castrol CRB TURBOMAX Pragati ki Paathshaala, were recognised with six metals at the Indian Digital Marketing Awards, demonstrating their effectiveness in fostering brand equity and engaging with target audiences.
Summary of CIL financial results and comparison to last year & quarter
*CIL follows a calendar year basis (CY: January to December) for financial reporting.
| (Figures in ₹ Cr) | 3Q 2024 Jul – Sept |
2Q 2024 Apr – Jun |
3Q 2023 Jul – Sept |
9M 2024 Jan – Sept |
9M 2023 Jan – Sept |
| Revenue from operations | 1,288 |
1,398 | 1,183 | 4,011 | 3,811 |
| Profit before tax | 280 | 314 | 264 | 887 | 857 |
| Profit after tax | 207 | 232 | 194 | 656 | 622 |