Castrol India - High Advertising Spends Hit Q4 Margins: IDBI Capital
Castrol India Ltd. (image: Company website)

Castrol India - High Advertising Spends Hit Q4 Margins: IDBI Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Castrol India Ltd. reported weaker than expected results for Q4 CY20 as sales/Ebitda were 13%/29% below our forecasts.

Net sales decreased by 7.6% YoY to Rs 9,352 million mainly led by lower volumes (down 3.7% YoY) and lower realization at Rs 180/litre (down 4.0% YoY).

Ebitda fell 24.5% YoY to Rs 2,576 million; Ebitda margin fell by 618 basis points YoY to 27.5% as the company’s promotional expenses jumped nearly six times YoY to Rs 650 million.

Its net profit fell 30.8% YoY to Rs 1,877 million as depreciation increased 21.9% YoY to Rs 223 million.

Click on the attachment to read the full report:

IDBI Capital Castrol India Q4CY20 Result Update.pdf

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