Castrol India held a conference call on 02 February 2023 to discuss the results for the quarter ended December 2023 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

• In the realm of two-wheelers, Castrol POWER1's 'India’s ULTIMATE Motostar' sought to discover the nation's top motorsports talent. The ultimate winners will have the incredible opportunity to get trained at the esteemed LCR Honda Castrol MotoGP™ Team’s racing facility in Europe.

• Castrol India bonds with the trucking community, auto dealers, and consumers strengthened, fueled by the triumph of the #BadhteRahoAagey campaign—an anthem of empowerment for the trucking sector. Pragati Ki Paathshaala, its ongoing on-ground initiative, aspires to be the heartbeat of skill development and entrepreneurship among truckers nationwide.

• Expanding its reach into rural Bharat, the company has enhanced product availability to 32,000 outlets deep in the hinterland. Direct consumer outreach, especially through e-commerce platforms, has yielded a positive impact.

• The launch of auto care products gained momentum and is now accessible in 21,000 outlets and embraced by trade and consumers alike.

• Newly introduced products, Castrol MAGNATEC SUV 5W-30 and Castrol CRB ESSENTIAL, are gaining momentum in diverse price segments.

• Castrol has introduced bottles with 30% post-consumer recycled (PCR) content to reduce plastic consumption and carbon emissions and achieved 100% renewable electricity at the Patalganga plant under the global PATH360 sustainability agenda.

• Castrol ON EV transmission fluids, launched for the aftermarket this year, can be bought on e-commerce platforms such as Amazon

• The company has trained more than 1000 independent car and bike mechanics, till date, on EV readiness to make them Futureready

• As part of its Onward, Upward, Forward strategy, the global brand has introduced Castrol ON immersion cooling fluids for data centres. Immersion cooling can help to increase the overall efficiency and sustainability of IT operations

• Total volume during the quarter was 5 million liter. Automotive comprised around 85% of total volumes and industrial around 15%.

• Advertising expenses is around 2-3% of total sales.

• EV market fluids are still very small and volume is still very insignificant.

• The company expects lubricant category to grow till 2040 despite emergence of EV.

• The company anticipates its EBITDA margin to be in the range of 23% to 26%

• The company is focused on outpacing the growth of the lubricants category, which typically stands at around 4-5%.