Record Q1 2016 performance by Castrol India Limited

Operating Profit up 37% at Rs.247 crores; Net up 17% at Rs.172 crores
Chandigarh, May 5, 2016: Castrol India Limited today announced its first quarter results for the period January – March 2016. The company delivered a strong set of results, with operating profit up by 37% at Rs.247 crores as compared to the same period in the previous year, driven mainly by a 9% volume growth.

Profit before tax for the quarter was higher by 19% at Rs.265 crores whilst Profit after Tax was higher by 17% at Rs.172 crores as compared to the same period in the previous year.

Commenting on the performance, Omer Dormen, Managing Director, Castrol India Limited, said, “This is an outstanding start to the year, underpinned by volume growth across all segments, good progress on key strategic drivers and a continuing favourable cost of goods environment.”

Mr. Dormen added: “Whilst the personal mobility segment continues its growth momentum, this quarter has seen volumes increasing in the commercial vehicle and industrial segments as well. New products launched over the last year and a half, including Castrol CRB Mini Truck, Castrol Vecton, Castrol MAGNATEC Stop-Start and Castrol Activ Scooter, have also started contributing considerably to the volume delivery.”

“Castrol Activ, the lead brand in the two-wheeler segment, continued to record double digit growth through sustained investment and effective market interventions. Castrol Activ brand equity was strengthened by leveraging the cricket platform through an innovative digital campaign ‘#clingontovictory’, which enabled an outreach to over 17 million potential consumers.”

“Castrol MAGNATEC, the flagship brand for passenger cars also showed an excellent growth led by new customer activation and strategically focused micromarketing initiatives aimed towards sharing new technology updates and brand benefits with key influencers.”

“Despite continued sluggishness in most manufacturing segments and increased competitive pressures, Castrol’s Industrial business achieved double digit volume growth driven mainly by new customer acquisitions and increased business share with key customers. This was enabled through superior products and enhanced services which helped our customers achieve overall cost competitiveness in their operations. In our focus segment of wind energy lubricants, we continued to gain market share by strengthening our relationship with all major global and Indian OEMs.”

Outlook: Commenting on the outlook for the rest of the year, Mr. Dormen said: “Our 2015 full year and 2016 first quarter performance confirm that we are progressing well against our strategy and that makes us confident about the future. Looking ahead, we have started seeing an upward movement in crude oil prices and we expect base oil prices to follow. This, together with the continuing rupee volatility could impact our cost of goods. On the other hand, we expect the economy to become more vibrant with the optimistic monsoon forecast, resulting in increased vehicle sales and freight movement – both of which will positively impact our business.

In the longer term, we are optimistic about the Indian lubricant market and our business growth. Castrol India is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and highly committed staff.”