Castrol India Ltd. (NSE: CASTROLIND): Latest Results Out; Total Income rise 8% YoY

Castrol India Ltd. (NSE:CASTROLIND) is an Indian company that operates in the lubricants industry. Castrol India offers a wide range of products such as engine oils, transmission fluids, brake fluids, and greases for a variety of applications such as automotive, industrial, and marine. Castrol India has a strong distribution network, with over 100 warehouses and over 70,000 retailers across the country. The company also has a presence in neighboring countries such as Nepal, Bhutan, and Bangladesh.

Castrol India Limited, a leading lubricant manufacturer, has reported its financial results for the fourth quarter and fiscal year ended December 31, 2022. The company follows a calendar year basis (January to December) for its financial reporting. For the fiscal year ended December 31, 2022, the company recorded revenue from operations of INR 4,774 crores, representing an overall revenue growth of 14% compared to INR 4,192 crores for the fiscal year ended December 31, 2021. Profit before exceptional items and tax for 2022 stood at INR 1,093 crores, marking a growth of 6% from INR 1,029 crores in 2021.

In addition to an interim dividend of INR 3 per equity share, the company’s board of directors have recommended a final dividend payment of INR 3.50 per equity share each for the fiscal year 2022, subject to shareholders’ approval. For the fourth quarter (October to December 2022), the company recorded revenue from operations of INR 1,176 crores, achieving a growth of 8% compared to INR 1,091 crores in the fourth quarter of 2021. Profit before tax for the fourth quarter of 2022 stood at INR 248 crores, registering a drop of 3% from INR 257 crores in the fourth quarter of 2021.

Commenting on the annual performance and fourth quarter 2022 results, Sandeep Sangwan, Managing Director of Castrol India Limited, said, “2022 was marked by high forex and inflationary pressures arising from volatile crude oil prices, leading to rising costs of additives and base oil. We balanced our volumes and margins through timely pricing decisions and rigorous cost management and delivered bottomline growth.” In the fourth quarter, Castrol India bolstered its service and maintenance network with a strategic partnership with Ki Mobility Solutions and expanded the reach of its service brands: Castrol Auto Service, Castrol Bike Points, and Castrol Express Oil change.

Looking ahead, Sandeep Sangwan added, “We will continue to drive long-term growth for Castrol through our future-ready strategy, which focuses on an enhanced play in service and maintenance, and a foray into new segments, including automotive aftercare and electric mobility. In the EV space, in 2023, we will launch our Castrol ON range of EV fluids for the aftermarket and collaborate with two-wheeler and four-wheeler OEMs to support their EV transition. In addition, we are supporting mechanics to get EV-ready with certified trainings that will help create an ecosystem enabled to serve EVs better.”