Castrol India June Quarter 2019 Performance

BW Online Bureau Jul 29, 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 the 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 are 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 endeavors 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.”

EARNINGS:

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.
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.

DIVIDEND:

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.