Castrol India Limited Announces Q2 2024 Financial Results: Revenue Up 5 Percent

Castrol India Limited has reported its financial results for the second quarter ended 30 June 2024, showing an improvement in both revenue and profit. The company, which follows a calendar year for its financial reporting, has credited current brand and marketing investments for driving this growth.

During the second quarter of 2024, Castrol India's Revenue from Operations grew by 5 percent to INR 1,398 crores, compared to INR 1,334 crores in the corresponding quarter of the previous year. This also marks a 6 percent increase from the sequential quarter (Q1 2024), which recorded a revenue of INR 1,325 crores. Profit Before Tax (PBT) for Q2 2024 stood at INR 314 crores, reflecting a 3 percent rise from INR 305 crores in Q2 2023, and an 8 percent increase from INR 292 crores in Q1 2024.

For the first half of the year ending 30 June 2024, the company reported a Revenue from Operations of INR 2,723 crores, marking a 4 percent growth from INR 2,628 crores in the first half of 2023. PBT for this period reached INR 606 crores, up by 2 percent from INR 593 crores in the same period last year.

"Our balanced focus on volumes and margins, along with our commitment to innovation and brand building, has driven revenue growth. As we celebrate 115 years in India, we remain dedicated to delivering innovation, performance, reliability, and protection. Notably, our presence in major sports properties like the IPL, T20 World Cup, and Wimbledon underscores our strong brand visibility," said Sandeep Sangwan, Managing Director of Castrol India Limited. In light of these positive results, the Board of Directors has declared an interim dividend of INR 3.5 per share, payable on or before 28 August 2024.

Key Highlights from Q2 2024 includes Castrol India launching three new variants of Castrol EDGE for SUVs, hybrids, and European vehicles through a comprehensive marketing campaign featuring Shah Rukh Khan. The company also expanded its Auto Care range with the Shiner Sponge for bike and car care, now available in over 45,000 outlets and e-commerce platforms.

Additionally, Castrol introduced Castrol CRB TURBOMAX+ CK4, a premium truck lubricant tested on key Indian OEM vehicles for 100,000 kilometers.

In terms of brand focus, Castrol POWER1's India’s Ultimate MotoStar on MTV concluded with three winners set to train at Castrol Honda LCR MotoGP Team’s racing facility in Europe. The Castrol CRB TURBOMAX Pragati Ki Paathshaala #BadhteRahoAage campaign empowered over 12,000 truckers across 35 cities, official statement notes. The company also sponsored television broadcasts of ICC WC T20 and Wimbledon to enhance brand visibility.

Castrol India expanded its distribution network by adding over 2,000 new outlets in rural areas, bringing its national footprint to over 135,000 outlets, including 534 Castrol Auto Service outlets, 28,435 bike points, and approximately 9,000 multi-brand car workshops. The company also inaugurated a state-of-the-art India Technology Centre at the Patalganga plant.

On the sustainability front, Castrol commissioned a Rainwater Harvesting Project at the Silvassa facility, aimed at collecting and reusing 800-1,000 KL of water annually. The company also set up a Solar Power Plant, achieving a 45 percent reduction in on-site CO2 emissions with 1,200 panels over 10,000 square metres.

On the people and culture front, Kedar Lele is expected to take over as Managing Director on 1 November 2024, succeeding Sandeep Sangwan. The company welcomed a new group of Early Career Graduates to the Castrol India family, celebrated seven years of DAFWC-free operations at the Paharpur plant, and launched #MeriCastrolKahaani, a series of 30-second employee stories on social media.

Chief Financial Officer Deepesh Baxi concluded, "Potential stabilisation of input costs in the latter half of the year could signal a positive trend for the industry." Overall, Castrol India Limited continues to demonstrate resilience and strategic growth, with a strong focus on innovation, community engagement, and sustainability.