Continued progress against strategy
- Strategic alliance between Groupe Renault and Castrol for lubricant supplies
- Strategic collaboration with 3M in vehicle care
- Launched BS VI ready range of products across categories
Strong financial delivery
- Revenue from operations and Profit After Tax up
- Continued growth in personal mobility segment
Mumbai, 29 July 2019 Omer Dormen, Managing Director - Castrol India Limited: “We have made solid progress against our strategy and this continued focus has helped us deliver strong financials driven by growth in personal mobility - especially in two-wheelers, focused channel management and robust efficiency measures. I am really pleased with our overall performance in the second quarter as well as the first half of 2019 despite a challenging environment. We are very excited about the new opportunity in India following the announcement of the new strategic partnership between Groupe Renault and Castrol for supply of their after-sales network from 1 January 2020. We are also happy that we have been able to launch our BS VI ready range of products for all categories of automotive engine oils, supporting the government’s low carbon agenda. This range includes Castrol VECTON Long Drain 15W40 CK4 commercial vehicle engine oils which is certified carbon-neutral and powers trucks with an extended drain interval up to 1,20,000 kilometres*. Apart from our cutting-edge new products, we are really proud of our new strategic collaboration with global technology company 3M which was signed recently. Through this tie-up, we will shortly be launching a new product range for the vehicle care market which will be offered through Castrol’s distribution network. During the last quarter, we also hosted the highly successful ‘Castrol Super Mechanic Contest’ hunt for India’s top mechanics. In its third year, the event saw a record 1.27 lakh registrations across the country. All our endeavours around people, brands, distribution, advocacy, customer acquisition and new product introductions are yielding good results and setting us up for a strong delivery for the future.”
GOOD OPERATING PERFORMANCE:
- Personal mobility continues to be a strategic growth driver
- Strong profitability and cash delivery
- Focus on cost competitiveness through strategic sourcing, procurement and formulation optimization
- Groupe Renault appoints Castrol as its supplier for global service fill engine oil lubricants from 1 January 2020
- Strengthened CVO portfolio with launch of Castrol VECTON Long Drain 15W40 CK4
- Continued investment in distribution expansion, brands, customer experience through technology and advocacy
- Revenue from operations up by 2% @ Rs.1,040 crores in 2Q 2019 and up by 4% @ Rs. 2,016 crores in 1H 2019 compared to the same period in the previous year.
- Profit after tax up by 11% @ Rs. 183 crores in 2Q 2019 and up by 6% @ Rs. 368 crores in 1H 2019 compared to the same period in the previous year.
The Board of Directors of the Company has at its meeting held on 29 July 2019 recommended an interim dividend of INR 2.50 per share (2018: Interim dividend INR 2.25 per share). The record date for the purpose of said Interim Dividend is 9 August 2019 which would be paid on or before 28 August 2019.
*Based on in-field testing in North America on trucks compliant with GHG14 (equipped with DPF and SCR exhaust technology) using ultra-low sulfur diesel. Actual oil drain depends on engine type, operation conditions, service history, OBD and fuel quality. Recommended to use a suitable oil monitoring program. Loads and speeds must not exceed the truck limit. For recommended Oil Drain Interval, please refer to OEM service manual.