Castrol India, a leading player in the lubricants industry, on Monday (October 30) reported its best third quarter (July-September) sales volumes in five years. The company that follows the calendar year (January-December) for financial reporting saw a 4% year-on-year (YoY) rise in post-tax profit for the third quarter, at ₹194 crore for the quarter.
Revenue from operations grew 5.5% year-on-year (YoY) to ₹1,183. EBITDA (earnings before interest, tax, depreciation and amortisation) was up 4.4% at ₹268.6 crore translating to a margin of 22.7% versus 22.9% last year.
In a post-earnings chat with CNBC-TV18, the company's Managing Director, Sandeep Sangwan, talked about the commitment to achieve strong topline growth while maintaining a healthy 23% margin.
Sangwan pointed out that the company has ample cash reserves and is actively exploring opportunities for deploying these reserves. With a debt-free status, robust margins, and healthy cash reserves, the company is well-equipped to fuel its growth in the coming years, he told CNBC-TV18 in a post-earning chat.
Castrol India predominantly operates in the retail automotive aftermarket and has a market share in the 20s.
On competition in the Indian lubricants market, Sangwan noted that the industry has witnessed an influx of brands, both domestic and international. He attributed this surge to India's promising growth potential, which is expected to continue well into the late 2030s, owing to the relatively low car penetration rates.
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"We are fully cognizant of the increasing competition, and that is why we continue to invest in our brands and scale up our distribution efforts. Castrol India boasts the largest distribution network among lubricant brands in the country, covering over 100,000 outlets. We are expanding into semi-urban and rural areas to sustain our growth trajectory. Healthy competition is always welcome and keeps us on our toes," he said.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Oct 31, 2023 11:38 AM IST
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