- Personal mobility shows steady growth
- Highest ever quarterly operating profit at INR 323 crore
- Moved into adjacencies with vehicle care products
- Launched unique digital solutions to provide premium customer experience
31 January 2020, Mumbai:
Sandeep Sangwan, Managing Director, Castrol India Limited:
“We delivered a resilient overall performance in 2019. Focused investments in our people, brands, distribution network, customer acquisition and advocacy efforts have helped us deliver on our strategic priorities enabling us to grow profits in a difficult business environment.
We clocked revenue growth in personal mobility in 2019. Our lead and India’s number one selling brand in the two-wheeler category, Castrol Activ, registered a record performance selling over 5 crore packs. We were able to grow margins through improved product mix, strong distribution and a robust cost and efficiency programme despite muted demand across sectors.
I am pleased with the strong profit delivery from operations which grew by 7% q-o-q and similarly 7% y-o-y at INR 323 crore and INR 1,083 crore respectively.
This year has been exciting as we moved into adjacencies going beyond the engine providing leading vehicle care products in the automotive sector through a strategic partnership with globally recognized technology company 3M India Limited. We also leveraged digital technology to launch unique solutions to provide premium customer experience.
The continued progress against our strategic drivers, despite the challenging external environment, gives me confidence of sustaining this momentum in the future.”
1. Good operating performance
- Personal mobility continues to be a key strategic growth driver
- Strong profitability and cash delivery with improved product mix, robust cost management and efficiency programme
2. Strategic delivery
- Continued investment in distribution, brands and advocacy
- Announced BS VI ready portfolio across categories
- Announced strategic partnerships with Ford India, Honda Two Wheelers India, Jawa Motorcyles (Classic Legends) and Renault India
- Moved into adjacencies with vehicle care products through strategic partnership with 3M India
- Made good progress on strategic digital enablers to provide premium customer experience
- Profit from operations grew by 7% q-o-q and similarly 7% y-o-y at INR 323 crore and INR 1,083 crore respectively.
- Cash generated from operations increased by 25% to INR 1,188 crore driven by robust working capital management
- The Board of Directors of the Company has at its meeting held on 31 January 2020 recommended a Final Dividend of INR 3.00 per share (2018: Final dividend INR 2.75 per share) for Financial Year ended 31 December 2019. This is in addition to an interim dividend of INR 2.50 per share (2018: INR 2.25 per share).
- The Register of Members and Share Transfer Books of the Company will remain closed for the purpose of Final Dividend from 24 April 2020 to 28 April 2020 (both days inclusive). The Final Dividend, if approved by the shareholders of the Company at the 42nd Annual General Meeting, shall be paid on or before 27 May 2020.