In This Article:
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Revenue from Operations: INR1,422 crores, up 7% year on year from INR1,325 crores in 1Q 2024.
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Profit Before Tax: INR313 crores, a gain of 7% year on year compared to INR292 crores in 1Q 2024.
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Profit After Tax: INR233 crores, up 8% from INR216 crores a year ago.
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Number of Outlets: Approximately 148,000 outlets, with over 40,000 in rural areas.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Castrol India Ltd (BOM:500870) reported a 7% year-on-year increase in revenue, reaching INR1,422 crores in Q1 2025.
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Profit before tax rose by 7% year-on-year to INR313 crores, and profit after tax increased by 8% to INR233 crores.
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The company expanded its Pan-India network to approximately 148,000 outlets, surpassing previous milestones.
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Castrol India's marketing campaign featuring Shah Rukh Khan reached over 220 million consumers, enhancing brand visibility.
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The company signed a supply agreement with a motorcycle manufacturer for its Castrol Power 1 engine oil, boosting its product offerings in the two-wheeler segment.
Negative Points
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EBITDA margins were at the lower end of the guidance range due to increased advertising and promotional expenses.
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The industrial segment, while growing, has a slower growth rate compared to the automotive segment.
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The impact of ForEx volatility has increased costs, affecting overall profitability.
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The company's expansion into the EV segment is still in early stages, with negligible current revenue contribution.
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The strategic review by BP PLC of Castrol's global business could lead to uncertainties in future operations.
Q & A Highlights
Q: Is Castrol developing any products for the data center cooling environment? A: Yes, Castrol is working with data centers globally on cooling technologies like immersive and direct-to-chip cooling. These efforts are expected to expand in the future, although specific customer names cannot be disclosed at this time. - Kedar Lele, Managing Director
Q: Can you provide details on the volume mix for this quarter, particularly between automotive and industrial segments? A: Overall volumes grew by 8% year-on-year, with the automotive segment, which constitutes 85% of our business, showing significant growth. Commercial vehicles and cars saw double-digit growth, while two-wheelers experienced high single-digit growth. The industrial segment grew in single digits. - Kedar Lele, Managing Director
Q: Why were EBITDA margins slightly lower this quarter? A: The EBITDA margin was at the lower end of our guidance due to increased investments in advertising and promotions, particularly with the Shah Rukh Khan campaign. This strategic investment is expected to drive future growth. - Kedar Lele, Managing Director