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Castrol India reported 28% increase in its bottom-line to Rs 271.3 crore in Q4CY'19 on 2% decrease in topline to Rs 1011.8 crore compared to corresponding previous year period. OPM was up 300 bps to 33.7% leading to a 7% rise in operating profits to Rs 341.2 crore as cost of material consumed as a percentage of net sales decreased 620 bps to 36.1% in the quarter ended December 2019 from 42.3% in the corresponding previous year period while employee benefit expenses rose 40 bps to 5.8%, other expenses rose 260 bps to 19.3% and purchase of stock in trade fell 170 bps to 3.3%.
Other Income decreased 37% to Rs 16.2 crore in Q4CY19 from Rs 25.6 crore in Q4CY18 while interest cost was Rs 0.3 crore and depreciation rose 25% to Rs 18.3 crore. As a result PBT was up 3% to Rs 338.8 crore. Effective rate of tax fell 1550 bps to 19.9% leading a 28% increase in PAT to Rs 271.3 crore.
For CY'19 Net Sales of the company was down 1% to Rs 3876.8 crore compared to corresponding previous year while bottomline increased 17% to Rs 827.4 crore. OPM rose 230 bps to 29.7% leading a 8% rise in operating profits to Rs 1153 crore. Other income decreased 23% to Rs 64.8 crore while interest cost was Rs 1.2 crore and depreciation up 25% to Rs 69.7 crore. PBT as a result rose 4% to Rs 1146.9 crore. Effective rate of taxes fell 760 bps to 27.9% leading a 17% increase in PAT to Rs 827.4 crore.
Sandeep Sangwan, Managing Director, Castro! India Limited:
'We delivered a resilient overall performance in 2019. Focused investments in our people, brands, distribution network, customer acquisition and advocacy efforts have helped us deliver on our strategic priorities enabling us to grow profits in a difficult business environment. We clocked revenue growth in personal mobility in 2019. Our lead and India's number one selling brand in the two-wheeler category, Castro! Activ, registered a record performance selling over 5 crore packs. We were able to grow margins through improved product mix, strong distribution and a robust cost and efficiency programme despite muted demand across sectors.
I am pleased with the strong profit delivery from operations which grew by 7% q-o-q and similarly 7% y-o-y at INR 323 crore and INR 1,083 crore respectively.
This year has been exciting as we moved into adjacencies going beyond the engine providing leading vehicle care products in the automotive sector through a strategic partnership with globally recognized technology company 3M India Limited. We also leveraged digital technology to launch unique solutions to provide premium customer experience.
The continued progress against our strategic drivers, despite the challenging external environment, gives me confidence of sustaining this momentum in the future."
Others
The Board of Directors of the Company has at its meeting held on 31 January 2020 recommended a Final Dividend of INR 3.00 per share (2018: Final dividend INR 2.75 per share) for Financial Year ended 31 December 2019. This is in addition to an interim dividend of INR 2.50 per share (2018: INR 2.25 per share).
The scrip is currently trading around Rs 135 on the BSE
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