Castrol India announces First Quarter (Jan – March 2019) results

  • Highest ever 1Q PBT @ INR 288 crore
  • Revenue and profit from operations up by 5% and 3% respectively
29 April 2019, Mumbai: 
                                                                                                              
Omer Dormen, Managing Director, Castrol India Limited:

 “We continue progressing really well against our strategic priorities and in 1Q 2019, we have seen strong topline improvement contributed by growth in personal mobility space, focus channels and new premium products. I am pleased with the overall performance of the business as we achieved the highest ever first-quarter profit before tax in 1Q 2019. 

In a tough environment, which witnessed softening of economic indicators, sluggish demand and higher input costs, we have been resilient to grow our revenue from operations by 5% YOY to INR 976 crore and 3% increase in profit from operations YOY to INR 267 crore.   

Through prudent cost control initiatives, strategic sourcing and better product mix management we have been able to protect our margins quarter on quarter. 

In the quarter, Castrol India’s best-seller Castrol Activ range of two-wheeler engine oils was completely refreshed with formulation changes and saw the launch of two additional variants - Castrol Activ Stop-Start and Castrol Activ Cruise in line with the changing needs of today’s bikers providing 3X protection across all stages of riding. Castrol Activ marketing campaign #NonStopDemocracy which was launched in 1Q aiming to inspire bikers to be the spark for change in society encouraging them to ‘give a ride, help cast a vote’ in the ongoing general elections, has been a great success.

Our best in class performance was deservedly recognised with Castrol India winning two coveted awards in the quarter. The company won the IMC Ramkrishna Bajaj National Quality Award in the manufacturing category for 2018 and Silvassa plant received the International Safety Award from the British Safety Council. 

With continued investments in our people, brands, distribution network, customer acquisition and advocacy efforts in line with our strategic priorities, we are confident of driving greater success moving ahead.”

Highlights:

Good operating performance

  • The company grew profits in a tough external environment
  • Robust margin management, improved product mix, strategic sourcing and cost control
  • Continued to deliver strong cash flow with rigour in working capital management
  • Personal mobility continues to be a key strategic growth driver; growth in power brands and synthetics

Strategic delivery

  • Refreshed Castrol Activ portfolio, improved formulation and launch of two new variants - Castrol Activ Stop-Start and Castrol Activ Cruise
  • Inked strategic partnership with Ford India including supply of engine and transmission oils to their dealerships in India, and working jointly to develop and co-engineer products to further enhance performance efficiency of Ford vehicles
  • First phase of expansion of Silvassa plant started

Earnings

  • Revenue from Operations for the quarter was up 5% at INR 976 crore
  • Profit after tax for the quarter was up 2% at INR 185 crore