Q2 Results: Castrol India Sticks To Full-Year Volume Growth Forecast

Castrol India Ltd. expects the second half of calendar year to boost volumes, helping the company maintain its 2019 volume growth guidance between 2 percent and 4 percent, its Managing Director Omer Dormen said.

This comes after the automotive and industrial lubricant manufacturer reported reduced volumes in the first and second quarter of the year. Castrol India’s volumes declined 2.8 percent year-on-year to 55.4 million litres in the quarter ended June and 1.6 percent to 50.4 million litres in the quarter before that.

The decline in volumes was caused by the demand slowdown, Dormen told BloombergQuint, adding that adverse foreign exchange also impacted its cost structure.

Key Takeaways

• Margin improvement through cost-efficiency program
• Looking at different revenue models
• Launched BS-VI compliant products
• Continue to be a resilient company

Castrol Q2 Results 2019: Highlights

• Revenue up 2.2 percent to Rs 1,040 crore.
• Net profit jumps 11.3 percent to Rs 183 crore.
• Ebitda up 13 percent to Rs 284 crore.
• Ebitda margin expands by 260 basis points to 27.3 percent.
• Cost of raw material as a percent of sales down 46 percent, from 50.9 percent.
• Personal mobility continues to be a strategic growth driver.
• Focus on cost competitiveness through strategic sourcing, procurement and formulation optimisation.

Watch the full interview here: