Castrol India gains after Q2 PAT rises 47% YoY

Castrol India advanced 3.26% to Rs 117.30 after the company reported 47% rise in net profit to Rs 206 crore on a 40% increase in Revenue from operations to Rs 1,242 crore in Q2 June 2022 over Q2 June 2021.

Profit before tax for the quarter stood at Rs 280 crore, marking a growth of 47% from Rs 190 crore in Q2 2021.

Sandeep Sangwan, managing director, Castrol India, said, Our 2Q performance was in the backdrop of a volatile market environment where we had to balance rising input costs, while maintaining an optimal price and volume mix. We effected two price increases in the first half of the year, which enabled us to deliver a resilient performance and helped our business stay ahead of 2Q 2021, though our volumes & margins were under pressure compared to 1Q 2022.

As we progress further into the year, we will keep balancing the need to drive growth & serve our customers' needs while protecting our margins as inflationary and forex pressures are likely to continue in 2H 2022.

"An integral element of our future-ready strategy is our foray into service and maintenance with new formats such as Castrol Auto Service and Castrol Express Oil Change outlets. In addition, we are also exploring collaborations with electric vehicle OEMs to help advance electric mobility in India, while continuing to launch new, superior-performing products in the traditional lubricants space, he added.

The board of directors of the company has declared an interim dividend of Rs 3 per share, which will be paid on or before 31 August 2022.

Castrol India manufactures and markets automotive and industrial lubricants and specialty products. The company's products incude lubricating oils, greases and brake fluids.

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