Castrol India Q2 Review - Raw Material Price Inflation To Keep Margins In Check: Motilal Oswal
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.
Motilal Oswal Report
Castrol India Ltd. missed our estimates due to lower-than-estimated volumes of 45 million litre (down 8% estimate; up 55% YoY / down 26% QoQ)- as the quarter was challenged by localised lockdowns and muted demand.
The management guided that demand momentum has picked up since June 2021 and is expected to continue (although a potential third wave may be a critical development).
Castrol India took pricing action twice in Q2 CY21 (in April and June, along with a price hike in January 2021 as well) to mitigate the surge in input cost.
This resulted in realisation of Rs 197.7/litre (in-line / up 6% QoQ), with the Ebitda margin at 22%.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.