IDBI Capital: Castrol India - Operating Cash Flows Strong; Valuations Attractive 
An oil cap sits in the engine bay of a car. (Photographer: Simon Dawson/Bloomberg)

IDBI Capital: Castrol India - Operating Cash Flows Strong; Valuations Attractive 

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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 better than expected Ebitda margin for Q3 CY20. The Ebitda and profit after tax were 12%/9% above our estimates.

Net sales increased by 4.0% YoY to Rs 8,831 million mainly led by higher volumes (up 9.3% YoY) although realization was weak at Rs 188 per litre (down 4.9% YoY).

Ebitda increased 17.9% YoY to Rs 2,882 million as Ebitda margin improved 384 basis points YoY to 32.6%.

Castrol’s operating cash during 9MCY20 stood at Rs 6,240 million (150% of 9MCY20 profit after tax) mainly due to robust working capital management.

Click on the attachment to read the full report:

IDBI Capital Castrol India Q3CY20 Result Update.pdf

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