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Results
04-Aug-21
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Analysis
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Castrol India
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Solid financial performance
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Castrol India standalone net sales increased 81.33% to Rs 889.60 crore in
Q1FY22 compared to Q1FY21. Operating profit margin has jumped from 19.43% to
22.20%, leading to 107.24% rise in operating profit to Rs 197.50 crore. Raw material cost as a % of total sales (net
of stock adjustments) increased from 33.11% to 46.85%. Purchase of finished goods cost rose from
4.97% to 5.20%. Employee cost decreased
from 10.63% to 6.39%. Other expenses
fell from 27.85% to 20.26%.
Other income fell 12.50% to
Rs 13.3 crore. Provision for interest
fell 50% to Rs 0.7 crore. Provision for
depreciation was down 3.40% to Rs 19.9 crore.
Profit before tax grew 114.92% to Rs 190.20 crore. Provision for tax was expense of Rs 50.2
crore, compared to Rs 23.1 crore.
Effective tax rate was 26.39% compared to 26.10%. Profit after tax rose
114.07% to Rs 140.00 crore.
Promoters’ stake was 51.00%
as of 30 June 2021 compared to 51.00% as of 30 June 2020.
For year-to-date (YTD) results analysis
Net sales of Castrol India
have increased 72.09% to Rs 2,028.30 crore.
Operating profit margin has
jumped from 22.76% to 26.51%, leading to 100.37% rise in operating profit to Rs
537.60 crore. Raw material cost as a %
of total sales (net of stock adjustments) increased from 40.10% to 43.90%. Purchase of finished goods cost rose from
4.33% to 4.88%. Employee cost decreased from 8.36% to 5.30%. Other expenses fell from 24.07% to 19.89%.
Other income fell 21.14% to
Rs 27.6 crore. Provision for interest
fell 48% to Rs 1.3 crore. Provision for
depreciation down 3.27% to Rs 41.4 crore.
Profit before tax grew
102.52% to Rs 522.50 crore. Provision
for tax was expense of Rs 138.9 crore, compared to Rs 67.4 crore. Effective tax rate was 26.58% compared to
26.12%. Profit after tax rose
101.26% to Rs 383.60 crore.
Equity capital stood at Rs
494.60 crore as of 30 June 2021 to Rs 494.60 crore as of 30 June 2020. Per share face Value remained same at Rs
5.00.
Promoters’ stake was 51.00%
as of 30 June 2021 compared to 51.00% as of 30 June 2020.
Sandeep Sangwan, Managing director, Castrol India
Limited commented:
Castrol India Limited
reported a solid financial performance and resilient business delivery in 2Q
2021 maintaining the momentum built over the previous few quarters. We
delivered a strong set of numbers with both topline and bottom line seeing good
growth versus the same period of last year, which was subdued on account of a
national lockdown brought about by the first wave of the pandemic.
Owing to the Covid second
wave, the quarter saw challenges in the form of localized lockdowns, muted
demand, as well as a sharp rise in input costs. Our timely pricing
interventions, along with agility and responsiveness helped us navigate this
dynamic market situation. We continued to invest in our brands with increased
marketing and advertising spends to support value delivery to customers and
reinforce brand salience.
In our endeavor to deliver
quick and reliable service brand experience to consumers in collaboration with
Jio-bp at their retail sites, we recently launched a new concept of Castrol
Express Oil change outlets which offer quick oil change service for consumers
on-the-go. We also leveraged digital platforms to continue building engagement
with the biker community with our high performance synthetics range of Castrol
POWER1 ULTIMATE two-wheeler engine oils through performance imagery led impact
properties including Bollywood movie launch Toofaan.
Safety of our people and
community support continue to be our strategic priorities along with protecting
the financial health of the business during these difficult times. We have
conducted
vaccination camps for our
plant staff who continue to operate our manufacturing plants safely, while
implementing Covid-19 safety processes and guidelines as laid out by the
government, and also for our employees who continue to work from home.
During this period, we
celebrated a key milestone of our manufacturing plant at Silvassa completing 25
years of safe and successful operations. The plant has evolved into an epitome
of trust and reliability over the years for our customers including key OEMs,
and is considered as one of the most modern lubricant plants in the region.
Our work with the trucker
and mechanic communities was recently acknowledged when our flagship CSR
programmes were recognized with ‘Excellence in CSR” award by British Business
Group Delhi (BBG). The award to Castrol Eklavya for upskilling of mechanics and
Castrol Sarathi Mitra programme for holistic development of truck drivers, is a
recognition of our endeavours towards sustained livelihoods with pride for
these communities, along with recent interventions such as student
scholarships, family connect programmes focused on health and wellbeing along
with Covid awareness, and community vaccination drives that have helped us
forge an even stronger bond with them during the pandemic.
The Board of Directors of
the Company has at its meeting held on 2 August 2021 recommended an interim
dividend of INR 2.50 per share (2020: Interim dividend INR 2.50 per share;
Final dividend INR 3.00 per share). The record date for the purpose of said
interim dividend, which would be paid on or before 1 September 2021, is 12
August 2021.
We remain confident of our
strong business fundamentals and longer term profitable business growth as the
situation returns to a normal state.
The scrip is currently trading around Rs 141
on the BSE
Castrol India : Standalone Results
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Particulars
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2106
(03)
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2006
(03)
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Var.(%)
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2106
(06)
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2006
(06)
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Var.(%)
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2012
(12)
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1912
(12)
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Var.(%)
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Net
Sales
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889.6
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490.6
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81
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2,028.30
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1,178.60
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72
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2,996.90
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3,876.80
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-23
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OPM
(%)
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22.2
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19.43
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26.51
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22.76
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27.16
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29.74
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OP
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197.5
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95.3
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107
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537.6
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268.3
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100
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814.1
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1,153.00
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-29
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Other
Inc.
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13.3
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15.2
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-13
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27.6
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35
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-21
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62
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64.8
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-4
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PBIDT
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210.8
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110.5
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91
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565.2
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303.3
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86
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876.1
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1,217.80
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-28
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Interest
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0.7
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1.4
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-50
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1.3
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2.5
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-48
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4.2
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1.2
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250
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PBDT
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210.1
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109.1
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93
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563.9
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300.8
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87
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871.9
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1216.6
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-28
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Depreciation
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19.9
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20.6
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-3
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41.4
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42.8
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-3
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86.6
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69.7
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24
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PBT
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190.2
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88.5
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115
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522.5
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258
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103
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785.3
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1146.9
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-32
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PBT
before EO
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190.2
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88.5
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115
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522.5
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258
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103
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785.3
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1146.9
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-32
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EO
Income
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0
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0
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-
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0
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0
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-
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0
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0
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-
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PBT
after EO
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190.2
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88.5
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115
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522.5
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258
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103
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785.3
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1146.9
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-32
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Taxation
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50.2
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23.1
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117
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138.9
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67.4
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106
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202.4
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319.5
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-37
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PAT
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140
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65.4
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114
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383.6
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190.6
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101
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582.9
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827.4
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-30
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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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5.89
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8.37
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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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