Castrol India on Tuesday reported an 11.3 percent decline in net profit at Rs 202.5 crore for the first quarter ended March 31, 2023. It had posted a profit of Rs 228 crore in the corresponding quarter of last year. The performance was impacted by the inflationary pressures, high input costs and fluctuating forex.
Castrol India follows a calendar year basis (January to December) for its financial reporting. For the first quarter, the automotive and industrial lubricant manufacturing company’s revenue from operations grew by 4.7 percent to Rs 1,293.9 crore in the reported quarter against Rs 1,235.7 crore posted last year.
Castrol India’s EBITDA declined by 7 percent to Rs 295.1 crore against Rs 317.2 crore posted last year. Its margin stood at 22.8 percent against 25.7 percent posted last year.
"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 of Castrol India.
On part of the outlook of the company, Sangwan added, "We will continue to drive consistent growth in the subsequent quarters and enhance our industry partnerships to ramp up our service & maintenance offerings and in new strategic segments such as automotive aftercare."
Shares of Castrol India settled at Rs 116.90 per share, down 0.04 percent, today on NSE.
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