Castrol India delivers strong Q3 2015 results

Net up 21.5% at Rs. 143.2 crores

Q3 Jul - Sep 2015
Q3 Jul - Sep 2014
Q3 % Inc/ (Dec)
Nine Months Jan – Sep 2015
Nine months Jan - Sep 2014
Nine months % Inc/ (Dec)
Net Sales / Income from Operations
Q3 Jul - Sep 2015
784.3
Q3 Jul - Sep 2014
802.3
Q3 % Inc/ (Dec)
(2.2)
Nine Months Jan – Sep 2015
2,507.1
Nine months Jan - Sep 2014
2533.0
Nine months % Inc/ (Dec)
(1.0)
Profit Before Tax
Q3 Jul - Sep 2015
221.3
Q3 Jul - Sep 2014
178.2
Q3 % Inc/ (Dec)
24.2
Nine Months Jan – Sep 2015
725.9
Nine months Jan - Sep 2014
520.0
Nine months % Inc/ (Dec)
39.6
Profit After Tax
Q3 Jul - Sep 2015
143.2
Q3 Jul - Sep 2014
117.9
Q3 % Inc/ (Dec)
21.5
Nine Months Jan – Sep 2015
474.4
Nine months Jan - Sep 2014
342.5
Nine months % Inc/ (Dec)
38.5
Castrol India Limited today announced its third quarter results for the period July-September 2015. 

Profit from operations during the quarter under review was up by 23.1% at Rs. 206.5 crores whilst Profit after Tax at Rs.143.2 crores was up by 21.5% as compared to the same period last year. 

For the nine month period January – September 2015, Profit after Tax was up by 38.5% to Rs.474.4 crores as against Rs.342.5 crores during the same period in the previous year.

Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited, said: “The financial results for the third quarter demonstrate a solid performance, building on operational momentum and continued premiumization of our portfolio, aided by a more favorable cost of goods environment.”

“The business continues to be driven by strong performance in personal mobility segment with Castrol Activ increasing its market share and strengthening its leadership position in the two-wheeler engine oil category. 
Continuing on the automotive performance, Omer said: “Power brands and Independent Workshop channel are also performing extremely well, both delivering double digit volume and margin growth year to date. The contribution of premium synthetic products like Castrol MAGNATEC and Castrol EDGE continue to grow.

The company received a number of external awards during the quarter under review and was ranked #12 on the list of Brand Z® India’s Top 50 Most Valuable brands. The Awards are given as a measure of financial and brand value and Castrol was the #1 multinational brand on the list with brand value moving up from USD1.3 bn to USD 1.8 bn.

The ‘Castrol Activ Scooter anti-counterfeit pack with pull-up pourer’, won the India Star Award for excellence in packaging design, innovation and technology. The India Star packaging award was also won for the ‘Castrol Shelf-Ready display pack’ for Castrol CRB Mini-Truck which was launched last year and continues to show strong growth. The company’s Silvassa Plant was awarded the Greentech Foundation Gold Award in Petrochemical Sector for outstanding performance on Safety Management

Commenting on the Industrial part of the business, Omer Dormen said: “After sharp decline in the first two quarters due to sluggish manufacturing activity and increased competition, the Industrial business is seeing some improvement as a result of new customer wins especially in the wind and steel segments. On a like for like basis, our Sales Volume during third quarter remained flat versus same period last year. Year-to-date, the Industrial business delivered double digit Gross Margin and Operating profit growth over the same period last year, driven largely through increased focus on product mix.” 

Outlook:

The strong result during the first nine months of the year have been achieved in an environment which continues to be challenging for Commercial Vehicle Oils and Industrial lubricant oils. Looking ahead, although the drop in crude oil price has translated into lower base oil cost, we are likely to experience volatility in the cost of goods due to volatile Rupee exchange rate. In the longer run, we continue to remain optimistic about the Indian lubricant market and our business growth. The company is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and continued commitment of its staff.