Castrol India Shines in Q2 2024: Revenue and Profit See Notable Growth

Robust Performance Driven by Strategic Marketing and Brand Investments

Mumbai, 30 July 2024: Castrol India Limited (BSE: 500870; NSE: CASTROLIND) has reported a strong financial performance for the second quarter ending 30 June 2024, reflecting significant growth in both revenue and profit. The company’s revenue from operations climbed 5% to ₹1,398 crores, while profit before tax rose by 3% to ₹314 crores, compared to the same period last year.

For the first half of 2024, Castrol India achieved a revenue of ₹2,723 crores, a 4% increase from ₹2,628 crores in the first half of 2023. Profit before tax for the same period grew by 2% to ₹606 crores.

Strategic Initiatives and Product Launches

Castrol India’s performance was bolstered by new product launches and aggressive marketing campaigns. The introduction of the Castrol EDGE range and promotional efforts featuring Bollywood icon Shah Rukh Khan significantly contributed to revenue growth. Sandeep Sangwan, Managing Director of Castrol India Limited, highlighted the company’s balanced focus on volumes and margins, stating, “Our commitment to innovation and brand building has driven our growth. As we celebrate 115 years in India, we remain dedicated to delivering excellence.”

Interim Dividend and Future Outlook

The company’s board declared an interim dividend of ₹3.5 per share, to be distributed by August 28, 2024. Chief Financial Officer Deepesh Baxi expressed optimism about the future, anticipating that ongoing product innovations and strategic brand investments will sustain growth momentum. He also noted that potential stabilization of input costs could positively impact the industry in the latter half of the year.

Key Highlights from Q2 2024

1. Product Innovations:

• Launched three new variants of Castrol EDGE tailored for SUVs, hybrids, and European vehicles, promoted through a comprehensive campaign featuring Shah Rukh Khan.
• Expanded the Auto Care range with the Shiner Sponge for bike and car care, now available in over 45,000 outlets and online platforms.
• Introduced Castrol CRB TURBOMAX+ CK4, a premium truck lubricant tested extensively on key Indian OEM vehicles.

1. Brand Engagement:

• Castrol POWER1’s India’s Ultimate MotoStar on MTV concluded, with winners set to train at Castrol Honda LCR MotoGP™ Team’s facility in Europe.
• The Castrol CRB TURBOMAX Pragati Ki Paathshaala campaign empowered over 12,000 truckers across 35 cities.
• Sponsored broadcasts of major sports events like ICC WC T20 and Wimbledon to enhance brand visibility.

1. Rural Market Expansion:

• Added over 2,000 new outlets in rural areas, with a national footprint exceeding 135,000 outlets, including Castrol Auto Service outlets, bike points, and multi-brand car workshops.
• Inaugurated a state-of-the-art Technology Centre at the Patalganga plant, boosting innovation and development capabilities.

1. Sustainability Initiatives:

• Implemented a Rainwater Harvesting Project at the Silvassa facility, aiming to collect and reuse 800-1,000 KL of water annually.
• Established a Solar Power Plant, reducing on-site CO2 emissions by 45% with 1,200 panels over 10,000 square meters.

1. Leadership and Culture:

• Announced the appointment of Kedar Lele as Managing Director from November 1, 2024, succeeding Sandeep Sangwan.
• Welcomed a new group of Early Career Graduates and celebrated seven years of DAFWC-free operations at the Paharpur plant.
• Launched #MeriCastrolKahaani, featuring 30-second employee stories on social media to capture the spirit of Castrol.

Castrol India’s strong performance in Q2 2024 underscores its effective strategic initiatives and commitment to innovation, setting a solid foundation for sustained growth in the future.

Summary of CIL financial results and comparison to last year & quarter

*CIL follows a calendar year basis (CY: January to December) for financial reporting