In This Article:
-
Revenue: Increased by 9% from 1,183 crores to 1,288 crores in Q3 2024.
-
Profit Before Tax (Q3 2024): 280 crores, a 6% increase year-on-year.
-
Revenue (9 months ending September 30, 2024): 2,011 crores, a 5% increase from the previous year.
-
Profit Before Tax (9 months ending September 30, 2024): 887 crores, a 3% increase from the previous year.
-
Distribution Network: Expanded to over 136,000 outlets nationwide.
-
New Product Launches: Four new rust preventive products under the Castrol Rustilo brand.
-
Recycled Content in Packaging: Increased to 50% in high-density polyethylene plastic bottles.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Castrol India Ltd (BOM:500870) reported a 9% increase in revenues for the third quarter of 2024, indicating strong financial performance.
-
The company achieved an 8% volume growth in the third quarter compared to the previous year, with significant growth in the commercial vehicle segment.
-
Castrol India's strategic focus on expanding its distribution network has resulted in a national footprint exceeding 136,000 outlets.
-
The company has made significant progress in sustainability, increasing recycled content in plastic bottles to 50% and shifting to renewable energy sources in its plants.
-
Castrol India Ltd has launched new products, including rust preventive products and auto care ranges, expanding its portfolio beyond traditional lubricants.
Negative Points
-
Despite the revenue growth, there was an 8% decline in revenues compared to the sequential quarter, indicating potential volatility.
-
The company's margins are expected to remain within a range of 22% to 25%, with no significant margin improvement anticipated despite lower crude prices.
-
The impact of geopolitical tensions on raw material costs remains uncertain, posing a potential risk to future financial performance.
-
The company's investment in the data center liquid cooling market is still in the pilot phase, with commercialization and revenue generation yet to be realized.
-
Employee benefit expenses have increased significantly, partly due to restructuring costs, which may impact profitability if not managed effectively.
Q & A Highlights
Q: What is the expected volume growth for Castrol India in the OEM sector considering current auto industry trends? A: Sandeep Sangwan, Managing Director, mentioned that the volume growth is expected to be around 4-5% for the year. The business is more dependent on the aftermarket rather than new vehicle sales.