Castrol India on Tuesday reported a decline of 11.3 per cent to ₹202.5 crore for the quarter ended March 2023. This is against a net profit of ₹228 crore in the corresponding quarter last fiscal.
The revenue from operations rose by 4.7 per cent to ₹1,293.9 crore for the quarter under review, as compared to ₹1,235.7 crore in the year ago period.
Castrol’s operating profit, i.e., earnings before interest and tax, depreciation and amortization (EBITDA) was down 7 per cent year-on-year at ₹295.1 crore as compared to ₹317.2 crore, while the margins came in at 22.8 per cent.
“While we built on the growth momentum from 4Q 2022 and registered quarter on quarter growth in 1Q 2023, our performance versus 1Q 2022 was impacted due to inflationary pressures, high input costs and fluctuating forex. We continued to invest in our brand and safeguard our margins while maintaining our pricing premium and providing our customers an elevated brand experience. We expanded our presence in service & maintenance, increasing our Castrol Auto Service outlets to over 300 and Castrol Bike Points to over 5000 across India,” said Sandeep Sangwan, Managing Director, Castrol India.
The company is now focusing on expansion, moving towards the automotive aftercare and the electric vehicle (EV) markets.
In 2022, Castrol entered into an alliance with the TVS-owned automobile aftermarket business Ki Mobility Solutions.
It also expanded its service brands, adding more workshops and outlets across the country, and partnered with Indian fuels and mobility joint venture Jio-bp and China’s SAIC Motor-owned MG Motor to explore setting up four-wheeler EV charging infrastructure.
This year, Castrol plans to launch a range of EV fluids under the brand Castrol ON.
The company’s share ended 0.13 per cent up at ₹117.10 on BSE.
