Douglas Mwiti 
- Delivers strong growth in 2Q; 7% in revenue and 9% in profit (YoY)1H revenue stands at ₹2,628 crores, profit at ₹593 crores
- Board of Directors declare interim dividend of ₹3 per share
Castrol India has announced its results for the second quarter ended 30 June 2023.
The Company follows the calendar year (January to December) for its financial reporting.
For the quarter (2Q) from April to June 2023, the Company registered Revenue from Operations of ₹1,334 Crores, marking a growth of 7% compared to ₹1,242 Crores in 2Q 2022 (corresponding quarter in the previous year), and a growth of 3% from ₹1,294 Crores in 1Q 2023 (sequential quarter). Profit Before Tax for 2Q 2023 stood at ₹305 Crores, a gain of 9% compared to ₹280 Crores in 2Q 2022, and 6% higher than ₹288 Crores in 1Q 2023.
This resulted in delivering strong performance in 1H ending on 30 June 2023.
During this period, the Company registered Revenue from Operations of ₹2,628 Crores, achieving a growth of 6% compared to ₹2,477 Crores in 1H 2022.Profit Before Tax for the period stood at ₹593 Crores, marking a growth of 0.4% from ₹591 Crores in 1H 2022.
Commenting on the quarterly results, Sandeep Sangwan, Managing Director, Castrol India Limited, said, “During the last quarter, we focused on achieving growth through increased volume. Despite challenges, we flourished, showcasing resilience and innovation in products and services.
We expanded our portfolio by entering the auto care range and launching successful new products like Castrol CRB ESSENTIAL and MAGNATEC SUV 5W30.
Alliances with organisations such as Mahindra Insurance Broker Limited strengthened our market position.
Our success is attributed to a robust supply chain and customer-centric services.
With confidence, we move ahead, expecting continued growth and impact into 2023-end.”
Pursuant to its alliances with OEMs for supply of electric vehicle (EV) fluids, the Company launched Castrol ON EV transmission fluids for the aftermarket earlier this year.
Consumers can now buy the product on e-commerce platforms. “Additionally, we are conducting ASDC-certified EV readiness trainings to make car and bike mechanics in India EV-ready. Until now, we have trained 200 mechanics across India. In 3Q, we expect to quadruple this number,” Mr. Sangwan added.
Sharing an outlook for the year ahead, Mr. Sangwan said, “Despite anticipated challenges in the business environment, we will remain focused on achieving growth and expanding market share.
This involves introducing new products and investing in strengthening our brand.
By the end of the first half, we’ve already established a network of over 5500 Castrol Bike Points and 350 Castrol Auto Service outlets.
In the second half, we aim to reinforce our position in the aftersales service market, committed to enhancing our presence and providing exceptional service to our valued customers.”
The Board of Directors of the Company have declared an interim dividend of ₹3 per share, which will be paid on or before 30 August 2023.
Key highlights from Castrol India in 2Q 2023 included:
Expanded portfolio with Castrol Auto Care products: Chain Cleaner, Chain Lube, 3-in-1 Shiner, 1-Step Polishing Compound, and Anti-Rust Lubricant Spray.
Pursuant to an agreement with Mahindra Insurance Brokers Limited, Castrol Auto Service (CAS) multi-brand passenger car workshops have an option to be empaneled as distributors of eligible insurance policies from top motor insurance providers through MIBL.
The workshops can now potentially offer automotive insurance products digitally alongside repair and maintenance services for their customers’ vehicles.
Launched Castrol CRB ESSENTIAL, affordable commercial vehicle engine oils with 5 product variants catering to different specifications.• Launched MAGNATEC SUV 5W30, a premium full synthetic offering.
This has gained a great response from our SUV customers already.
Patalganga plant won prestigious awards for industrial health and safety practices (by the Government of Maharashtra) and occupational health and safety (the Golden Peacock).
Paharpur plant awarded ‘Gold Award’ for Plant Efficiency category by Apex India Foundation.
In line with Castrol’s global PATH360 sustainability agenda, achieved 100% renewable electricity at Patalganga plant, reducing approximately 1300 MT of carbon emissions annually.
Lead brands, Castrol Activ and Castrol MAGANATEC, advertised with 110 Mn brand reach and 1.25 Bn impressions during Tata IPL tournament, with Castrol Activ ranked among top 3 most effective campaigns.
