Castrol India held a conference call on 28 October 2024 to discuss the results for the quarter ended September 2024 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

• Revenue from Operations for 9M 2024 stand at Rs 4,011 crores, reflecting a 5% growth from Rs 3,811 crores in 9M 2023. Similarly, Profit Before Tax for the period reached Rs 887 crores, marking a 3% increase from Rs 857 crores in 9M 2023.

• Volume growth on a YoY basis for Q3 CY24 was around 8%. Approximately, 60% of the volume was contributed by the retail business.

• The company continues to prioritise product and service innovations while strengthening its partnerships with key OEMs in automotive and industrial sectors. In addition, it plans to maintain its growth momentum through strategic brand investments in the upcoming months.

• Castrol launched four new rust-preventive products—Castrol Rustilo DW 800/ 806/ 809/ 812, catering to evolving customer needs. These products offer superior performance, environmental benefits, and ease of use.

• The auto care product range saw new additions, establishing a footprint in over 45,000 outlets and e-commerce platforms

• The recently launched Castrol EDGE variants and Castrol CRB TURBOMAX+ CK4, suitable for use across OEM engine platforms, received widespread positive market reception, solidifying Castrol’s position in the premium lubricants. The Castrol EDGE premium range is now widely available through various channels, and the successful marketing campaign with Shah Rukh Khan has driven consumer upgrades.

• Castrol’s continued efforts to expand its distribution network have resulted in reaching 35,000 workshops and retail outlets in rural India.

• With a robust network of around 580 Castrol Auto Service outlets, 29,500 bike points, 9,400 multi-brand car workshops, and dealers, Castrol now has a national footprint exceeding 136 thousand outlets.

• Castrol’s recycled content in high-density polyethylene plastic (HDPE) bottles increased to 50%, aligning with its sustainability goals.

• As on 30th September 2024, the company had a cash balance of around Rs 1,200 crore

• The company incurred capex expenditure of around Rs 60-65 crore In 9M CY24 and has a full year budget of around Rs 100 crore. The company plans to spend around Rs 125-150 crore per year for the next 2 years towards capex. These spends would be directed towards organic growth, capacity building and distribution

• In the event of successful completion of data center cooling liquid pilot, the company would require some capex to ensure the highest quality of product, however, no major capex in term of capacity is envisaged.

• The company expects an EBITDA margin of around 22%-25% for the near term

• The company expects volume growth of 4-5% in CY24