Castrol India announces Fourth Quarter (Oct - Dec 2018) and Full Year 2018 results

  • Strong volume growth for the third consecutive year
  • Revenue from operations and PAT up
  • Plan to further invest ~ INR 140 crore at state-of-the-art Silvassa plant
30 January 2019, Mumbai: 

Omer Dormen, Managing Director, Castrol India Limited:
“2018 marked another year of solid performance as we recorded consistent growth for the third consecutive year.

Continuous investment in our people, brands, distribution network, customer acquisition and advocacy efforts has helped us deliver on all our strategic priorities enabling us to grow ahead of the market, especially in retail, and to register profitable volume growth.
We were able to protect our margins through appropriate pricing interventions and rigorous
cost management despite an extremely volatile input cost environment.

We introduced new and differentiated products in our portfolio that have contributed
significantly to our volume growth during the year.

For the quarter under review, I am pleased with the strong performance delivery despite
softening of key economic indicators as well as higher input costs which necessitated three
price increases leading to higher price premiums in the market.

We grew our revenue from operations by 6% q-o-q to INR 1,033 crore and 9% y-o-y to INR 3,905 crore leading to 8% PAT q-o-q to INR 212 crore and 2% PAT y-o-y to INR 708 crore.

In line with our strategic agenda to drive growth and be future-ready, the Castrol India Limited Board has approved an expansion investment plan of ~INR 140 crore at our state-of-the-art Silvassa plant. This investment, spread over the next two years, will scale up capacity at the Silvassa plant by 50%.

While we received many external awards through the year for our performance on Safety, Quality and Customer Excellence, we bagged the prestigious Golden Peacock Innovation Management Award 2018 award in this quarter for our innovative initiatives, processes and products.

This continued and consistent progress has set us up for greater success as we move forward.”

Generating momentum

Good Operating Performance:

  • The business has delivered volume growth for the third consecutive year and growing faster than market
  • Strong profitability and cash delivery with judicious pricing actions to recover input cost.
  • Personal mobility continues to be a key strategic growth driver; good growth in commercial vehicle oil business

Strategic Delivery:

  • Plan to further invest ~INR 140 crore at state-of-the-art Silvassa plant
  • Continued investment in distribution expansion, brands and advocacy
  • Close to 80% of our volume growth in 2018 is delivered through new products introduced in the last twelve months
  • Strengthened our portfolio in motor cycle oils with bike care products such as the introduction of chain lubricants
  • An industry first - Castrol MAGNATEC 5W40 SUV oil launched
  • Won the Golden Peacock Innovation Management Award 2018

Earnings:

  • Revenue from Operations for the quarter was up 6% at INR 1,033 crore and for the full year period was up by 9% at INR 3,905 crore, compared to the same period in the previous year.
  • Profit after tax for the quarter was up 8% at INR 212 crore and for the full year period was up by 2% at INR 708 crore compared to the same period in the previous year.

Dividend:

  • The Board of Directors of the Company has at its meeting held on 30 January 2019 recommended a Final Dividend of INR 2.75 per share for Financial Year ended 31 December 2018 (2017: Final dividend INR 2.50 per share). This is in addition to an interim dividend of INR 2.25 per share (2017: INR 4.50 pre bonus issue per share)
  • The Register of Members and Share Transfer Books of the Company will remain closed for the purpose of Final Dividend from 11 May 2019 to 15 May 2019 (both days inclusive). The Final Dividend, if approved by the shareholders of the Company at the 41st Annual General Meeting, shall be paid on or before 14 June 2019