Castrol India announces strong Q4 results

Castrol India announces strong Q4 results

Q4 Oct - Dec 2017
Q4 Oct - Dec 2016
Q4 % Inc/ (Dec)
Year Ended Jan - Dec 2017
Year Ended Jan - Dec 2016
Year Ended % Inc/ (Dec)
Net Sales / Income from Operations
Q4 Oct - Dec 2017
970.3
Q4 Oct - Dec 2016
901.1
Q4 % Inc/ (Dec)
7.7
Year Ended Jan - Dec 2017
3,851.5
Year Ended Jan - Dec 2016
3,876.0
Year Ended % Inc/ (Dec)
(0.6)
Profit Before Tax
Q4 Oct - Dec 2017
312.2
Q4 Oct - Dec 2016
238.8
Q4 % Inc/ (Dec)
30.7
Year Ended Jan - Dec 2017
1,070.0
Year Ended Jan - Dec 2016
1,040.3
Year Ended % Inc/ (Dec)
2.9
Profit After Tax
Q4 Oct - Dec 2017
196.7
Q4 Oct - Dec 2016
151.3
Q4 % Inc/ (Dec)
30.0
Year Ended Jan - Dec 2017
691.8
Year Ended Jan - Dec 2016
670.4
Year Ended % Inc/ (Dec)
3.2
Castrol India Limited today announced its results for Q4 2017 and the Full Year ended 31 December 2017.

Profit after Tax during the period October – December 2017 was up by 30% at Rs.196.7 crore compared to Rs.151.3 crore for the same quarter last year, driven largely by strong volume growth. 

The Net Sales / Income from Operations during the quarter and the year under review is not comparable with last year numbers due to changes in treatment of indirect taxes post GST implementation. Excluding this impact, Net Sales in the quarter under review increased by 24% over same quarter last year and by 6% over the full year period compared to previous year. 

The Board of Directors of the Company has at its meeting held on 6 February 2018 recommended a Final Dividend of Rs.2.50 per share for Financial Year ended 31 December 2017 (2016: Final dividend Rs.4.50 per share). The said Final Dividend is on the enhanced paid up share capital post issue of Bonus shares in the ratio of 1:1. This is in addition to an interim dividend of Rs.4.50 per share (pre bonus per share) (2016: Rs.4.50 per share).
 
The Register of Members and Share Transfer Books of the Company will remain closed for the purpose of Final Dividend from 27 April 2018 to 3 May 2018 (both days inclusive). The Final Dividend, if approved by the Shareholders of the Company at the 40th Annual General Meeting, shall be paid on or before 1 June 2018.

The Company has issued and allotted 49,45,61,192 number of bonus equity shares of Rs.5/- each, on 26 December 2017, following approval of the members of the Company on 15 December 2017, vide postal ballot.

Commenting on the results, Omer Dormen, Managing Director said: “I am absolutely delighted with the performance delivered during the year under review and especially with the remarkable turnaround during the second half of the year, with stand-out performance during the last quarter of the year.” 

“The company has announced a strong set of results for fourth quarter with Profit Before Tax as well as Profit After Tax both growing by 30.7% and 30% respectively as compared to the same period in 2016. The performance is indeed even more creditable considering the strong headwinds we faced from the external environment for large part of the year. 

“The strong volume growth for the second successive year, in a really challenging environment, gives us the confidence to believe that our growth strategy is well on track. The company continues its focus on personal mobility and power brands, combined with aggressive distribution expansion and customer acquisition, underpinned by consistent investment in brand, technology and customer service and advocacy. One of our key objectives was to provide premium customer experience at every touch point and we were largely successful in achieving this.”

Whilst the personal mobility segment continues to contribute significantly to the bottom line, the company also saw a market share growth in the Commercial Vehicle segment where industry volumes have been largely flat or declining. The fourth quarter saw the launch of new Castrol Activ fortified with Improved Actibond® molecules which cling to critical engine parts through all stages of riding and beyond, providing 50% better protection*. Through the year, we also saw increased engagement with mechanics with the hugely successful Castrol Super Mechanic contest seeing over 60,000 two-wheeler mechanics participating from across the country.

Outlook

With the stabilization of the business environment post GST launch, the Company is confident that the actions it continues to take, will deliver results. We are beginning to see signs of recovery in the Indian economy and with the structural reforms continuing, we should see an increase in sales of vehicles as well as freight movement. 
Aligned to our long term strategic direction and on the back of continued investments in our technology and brands, aggressive growth plans, innovative marketing programmes and delivery of premium customer experience at multiple touch points, Castrol India is confident about continuing to deliver robust business performance.
[*than standard lubricants for motorcycle segment in India]