Castrol India Reports 4% Rise in Q4 Net Profit to Rs 242 Crore

Castrol India Reports 4% Rise in Q1 Profit

Castrol India, a leading engine oil maker, has posted a 4% rise in its first quarter profit, driven by higher volumes across rural and premium segments and growth in its industrial business. The company's profit after tax rose to Rs 242 crore in the quarter ended March 31, from Rs 233 crore a year earlier.

Revenue from operations increased about 9% to Rs 1,545 crore, driven by continued market-share gains and expansion across rural and urban markets. Growth was supported by double-digit expansion in the rural portfolio and continued traction in premium products in urban markets. The company's EBITDA increased 7% year-on-year to Rs 329 crore, helped by higher volumes across the automotive and industrial lubricant segments.

However, total expenses rose 9% during the quarter as raw material and packing material costs increased year-on-year, limiting margin expansion. The company also saw early signs of currency volatility and rising raw material costs toward the end of the quarter due to geopolitical developments.

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The company's strong momentum in the first quarter reflects its continued execution of its growth strategy. Castrol India expanded deeper into rural India, tapping village clusters with population below 20,000, with its rural portfolio growing at double digits. In urban markets, the company sharpened its focus on premium brands, driving distribution and activations in high density consumption areas and delivering double-digit volume and value growth. Its industrial business also sustained its double-digit growth.

At 2 pm on April 28, Castrol India shares were trading 0.6% lower at Rs 183.33 apiece.