Castrol India delivers record 1Q

Profit Before Tax at Rs.282 crore

1Q Jan – Mar 2018
1Q Jan – Mar 2017
1Q % Increase/ (Decrease)
Net Sales / Income from Operations
1Q Jan – Mar 2018
927.1
1Q Jan – Mar 2017
1012.1
1Q % Increase/ (Decrease)
(8%)^
Profit Before Tax
1Q Jan – Mar 2018
282.1
1Q Jan – Mar 2017
269.2
1Q % Increase/ (Decrease)
5%
Profit After Tax
1Q Jan – Mar 2018
181.8
1Q Jan – Mar 2017
179.0
1Q % Increase/ (Decrease)
2%
(^The Net Sales / Income from Operations during the quarter under review is not comparable with last year’s number due to change in treatment of indirect taxes post GST implementation)
3 May 2018

Castrol India Limited today announced its first quarter results for the period January - March 2018. Profit before tax during the quarter under review was up by 5% at Rs.282.1 crores compared to Rs 269.2 crores in the same period last year.

On a comparable basis without the change in indirect tax treatment, Net Sales in the quarter under review increased by 5% over the same period last year at Rs. 927.1 crores driven by volume growth across categories.

Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited said: “I am delighted with the performance delivered during the quarter under review. We continue to build momentum on our strong performance and we have been delivering consistent growth over the last two years. Despite the sharp rise in input costs during the quarter under review, we were able to deliver a good set of numbers which shows our strategy of profitable volume growth is well on track.” 

“Whilst we continue our focus and investment primarily in the personal mobility segment, we are also providing greater thrust on the commercial segment by broadening our participation in select mass market segments. Being the market leader, Castrol CRB brand commands strong consumer loyalty and we are sure that with the increased focus and investment in this segment, it will significantly contribute to our growth aspirations.”

In line with Castrol India’s commitment to continuously innovate to deliver differentiated, future-ready products, it launched several new products with significant consumer benefits during the quarter under review. 

In the fast growing passenger car segment, Castrol India launched Castrol MAGNATEC engine oil with DUALOCK technology, specially designed to provide 50%* better engine protection especially in congested city driving conditions. In the commercial vehicle segment, Castrol CRB Turbomax with DuraShield™ boosters was launched which delivers up to two times longer** engine life.  

Castrol India created higher visibility for its key brands through impactful media campaigns and a focused retail transformation drive while continuing its efforts on customer acquisition and distribution expansion. 

Castrol India continued to build strategic OEM partnerships and signed a three-year contract with Ford India to supply engine and transmission oils for all Ford vehicles produced in India for domestic and international markets. In recognition of its commitment to quality, Castrol India’s Silvassa Plant was awarded the prestigious Q1 certification by Ford - the first lubricants plant in India to receive this award.

Outlook:

With the continued increase in crude oil price and depreciation of the Indian rupee there is likelihood of further volatility in the cost of goods. 

Castrol India continues to remain optimistic about the Indian lubricant market and is confident about continuing to deliver robust business performance aligned to its long term strategy. This is underpinned by continued investments in technology and brands, aggressive expansion of distribution network, innovative marketing programmes and delivery of premium customer experience across multiple touch points.
Notes: 
*Warm-up wear tested versus the Sequence IVA API SN wear limit. Stop-start wear tested versus the CEC OM646LA ACEA wear limits.
** based on time between camshaft rebuilds in a severe Cummins ISB engine test vs. a conventional CH-4 engine oil without DuraShield™.