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Castrol India standalone net sales increased 7.41%
to Rs 1,333.76 crore in Q2CY23 compared to Q2CT22. Operating profit margin has jumped from
23.04% to 23.22%, leading to 8.26% rise in operating profit to Rs 309.75 crore. Raw material cost as a % of total sales (net
of stock adjustments) increased from 45.39% to 48.25%. Purchase of finished goods cost fell from
5.54% to 3.84%. Employee cost decreased
from 5.30% to 5.13%. Other expenses
fell from 20.86% to 19.21%.
Other income up 35.70% to Rs 18.55 crore. PBIDT rose 9.51% to Rs 328.3 crore. Provision for interest up 200% to Rs 1.47
crore. Loan funds rose to Rs 63.90 crore
as of 30 June 2023 from Rs 2.43 crore as of 30 June 2022. Inventories declined from Rs 572.11 crore as
of 30 June 2022 to Rs 526.22 crore as of 30 June 2023. Sundry debtors were higher at Rs 470.31 crore
as of 30 June 2023 compared to Rs 403.27 crore as of 30 June 2022. Cash and bank balance declined from Rs
1,503.70 crore as of 30 June 2022 to Rs 991.43 crore as of 30 June 2023.
PBDT rose 9.20% to Rs 326.83 crore. Provision for depreciation rose 11.50% to Rs
21.82 crore. Fixed assets increased to
Rs 311.70 crore as of 30 June 2023 from Rs 241.75 crore as of 30 June
2022. Intangible assets declined from Rs
4.62 crore to Rs 2.98 crore.
Profit before tax grew 9.04% to Rs 305.01
crore. Provision for tax was expense of
Rs 79.74 crore, compared to Rs 73.47 crore.
Effective tax rate was 26.14% compared to 26.26%. Profit after tax rose
9.22% to Rs 225.27 crore.
Equity capital stood at Rs 494.56 crore as of 30
June 2023 to Rs 494.56 crore as of 30 June 2022. Per share face Value remained same at Rs
5.00.
Promoters’ stake was 51.00% as of 30 June 2023
,compared to 51.00% as of 30 June 2022 .
Commenting on the quarterly results, Sandeep Sangwan,
Managing Director, Castrol India Limited, said, “During the last quarter, we focused on achieving growth through
increased volume. Despite challenges, we flourished, showcasing resilience and
innovation in products and services. We expanded our portfolio by entering the
auto care range and launching successful new products like Castrol CRB
ESSENTIAL and MAGNATEC SUV 5W30. Alliances with organisations such as Mahindra
Insurance Broker Limited strengthened our market position. Our success is
attributed to a robust supply chain and customer-centric services. With
confidence, we move ahead, expecting continued growth and impact into
2023-end.”
Pursuant to its alliances with OEMs for supply of
electric vehicle (EV) fluids, the Company launched Castrol ON EV transmission
fluids for the aftermarket earlier this year. Consumers can
now buy the product on e-commerce platforms.
“Additionally, we are conducting ASDC-certified EV readiness trainings to make
car and bike mechanics in India EV-ready. Until now, we have trained 200
mechanics across India. In 3Q, we expect to quadruple this number,” Mr Sangwan
added.
Sharing an outlook for the year ahead, Mr Sangwan
said, “Despite anticipated challenges in the business environment, we will
remain focused on achieving growth and expanding market share.
This involves introducing new products and investing
in strengthening our brand. By the end of the first half, we`ve already
established a network of over 5500 Castrol Bike Points and 350 Castrol Auto
Service outlets. In the second half, we aim to reinforce our position in the
aftersales service market, committed to enhancing our presence and providing
exceptional service to our valued customers.”
The Board of Directors of the Company have declared
an interim dividend of Rs 3 per share, which will be paid on or before 30
August 2023.
For year-to-date (YTD) results analysis
Net sales (including other operating income) of
Castrol India has increased 6.06% to Rs 2,627.65 crore. Operating profit margin has declined from
24.35% to 22.85%, leading to 0.50% decline in operating profit to Rs 600.29
crore. Raw material cost as a % of total
sales (net of stock adjustments) increased from 45.43% to 48.05%. Purchase of finished goods cost fell from
5.33% to 5.23%. Employee cost increased
from 5.45% to 5.48%. Other expenses
fell from 19.70% to 18.60%.
Other income up 41.64% to Rs 40.65 crore. PBIDT rose 1.41% to Rs 640.94 crore. Provision for interest up 157.85% to Rs 3.12
crore. Loan funds rose to Rs 63.90 crore
as of 30 June 2023 from Rs 2.43 crore as of 30 June 2022. Inventories declined from Rs 572.11 crore as
of 30 June 2022 to Rs 526.22 crore as of 30 June 2023. Sundry debtors were higher at Rs 470.31 crore
as of 30 June 2023 compared to Rs 403.27 crore as of 30 June 2022. Cash and bank balance declined from Rs 1,503.70
crore as of 30 June 2022 to Rs 991.43 crore as of 30 June 2023.
PBDT rose 1.11% to Rs 637.82 crore. Provision for depreciation rose 11.96% to Rs
44.55 crore. Fixed assets increased to
Rs 311.70 crore as of 30 June 2023 from Rs 241.75 crore as of 30 June
2022. Intangible assets declined from Rs
4.62 crore to Rs 2.98 crore.
Profit before tax grew 0.38% to Rs 593.27
crore. Provision for tax was expense of
Rs 165.5 crore, compared to Rs 156.36 crore.
Effective tax rate was 27.90% compared to 26.46%.Profit after tax fell
1.59% to Rs 427.77 crore.
Equity capital stood at Rs 494.56 crore as of 30
June 2023 to Rs 494.56 crore as of 30 June 2022. Per share face Value remained same at Rs
5.00.
Promoters’ stake was 51.00% as of 30 June 2023
,compared to 51.00% as of 30 June 2022.
The
scrip is currently trading at Rs 144
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Castrol India : Standalone
Results
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Particulars
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2306 (03)
|
2206 (03)
|
Var.(%)
|
2306 (06)
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2206 (06)
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Var.(%)
|
2212 (12)
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2112 (12)
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Var.(%)
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Net Sales
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1,333.76
|
1,241.71
|
7
|
2,627.65
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2,477.41
|
6
|
4,774.49
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4,192.06
|
14
|
|
OPM (%)
|
23.2
|
23.0
|
|
22.8
|
24.4
|
|
23.3
|
25.4
|
|
|
OP
|
309.75
|
286.12
|
8
|
600.29
|
603.32
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-1
|
1,111.10
|
1,065.96
|
4
|
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Other Inc.
|
18.55
|
13.67
|
36
|
40.65
|
28.7
|
42
|
67.05
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48.43
|
38
|
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PBIDT
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328.3
|
299.79
|
10
|
640.94
|
632.02
|
1
|
1,178.15
|
1,114.39
|
6
|
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Interest
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1.47
|
0.49
|
200
|
3.12
|
1.21
|
158
|
4.01
|
2.41
|
66
|
|
PBDT
|
326.83
|
299.3
|
9
|
637.82
|
630.81
|
1
|
1,174.14
|
1,111.98
|
6
|
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Depreciation
|
21.82
|
19.57
|
11
|
44.55
|
39.79
|
12
|
81.39
|
82.7
|
-2
|
|
PBT before EO
|
305.01
|
279.73
|
9
|
593.27
|
591.02
|
0
|
1092.75
|
1029.28
|
6
|
|
EO Income
|
0
|
0
|
|
0
|
0
|
|
0
|
0
|
-
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|
PBT after EO
|
305.01
|
279.73
|
9
|
593.27
|
591.02
|
0
|
1092.75
|
1029.28
|
6
|
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Taxation
|
79.74
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73.47
|
9
|
165.5
|
156.36
|
6
|
277.6
|
271.19
|
2
|
|
PAT
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225.27
|
206.26
|
9
|
427.77
|
434.66
|
-2
|
815.15
|
758.09
|
8
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EPS (Rs)*
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#
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#
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|
#
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#
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|
8.2
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7.7
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Notes
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* EPS is on current equity of Rs 494.56 crore, Face value of Rs
5, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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