Castrol India held a conference call on 02 May 2024 to discuss the results for the quarter ended March 2024 and way forward. Mr. Sandeep Sangwan, Managing Director and Mr. Deepesh Baxi, Chief Financial Officer and Whole time Director of the company addressed the call.

Highlights of the Concall

• Volume growth was 6% at 58 million liter during the the quarter despite slower consumer demand witnessed in the beginning of the quarter.

• The company welcomed Shah Rukh Khan as brand ambassador focussing on brand building.

• The #BadhteRahoAage campaign and Castrol CRB TURBOMAX Pragati Ki Paathshaala empowered over 12,000 truckers in 31 cities nationwide.

• Castrol POWER1’s 'India’s Ultimate MotoStar’ garnered over 10,000 registrations nationally, especially from tier II and III cities. Winners from the shortlisted top 18 aspiring contenders to undergo training at the LCR Honda Castrol MotoGP™ Team’s facility in Europe.

• The company has expanded its footprint to over 9000 multi-brand passenger car workshops strengthening its after-market presence and showcasing a remarkable double digit growth quarter on quarter and close to 28000 independent bike workshops, adding more than 1000 outlets quarter on quarter.

• Lubricant market grows in the range of 4% to 5%, and the company intents to grow above the market levels.

• The company has not taken any significant price increases during the quarter.

• Margins were lower compared to previous quarter despite flattish base prices due to increase in cost of other raw material.

• sales of commercial vehicles and industrial have been higher compared to the personal mobility.

• India is one market globally, which will continue growing in the core lubricants business for the next 10- 15 years.As a result lot of more people coming to the market which increases the competitive intensity.

• Other expenses was higher during the quarter due to increase in travel expenses as it is now going deeper into the hinterland and in rural areas, higher volume related expenses and one off expenditure of Rs 2-3 crore.

• Auto Care products are now available across about 50,000-plus outlets in the country and the company plans to introduce new products in the coming months and quarters.

• Ki Mobility is also progressing well expanding their network. And as with any digital business, it keeps learning and reinventing their go-to-market and business model. The company mentioned that consumers are trusting myTVS as a brand for aftermarket, both in spare parts and services.

• Advertisement expenses incurred in this quarter was in the range of 2.5% of the turnover. The company expect it to be about 3% in next quarter.

• The company has got 3 plants and overall capacity utilization is about 80% during the quarter.

• The company focus is driving top line growth with EBITDA margin in the range of 22% to 25%