Castrol India Limited has announced strong financial results for the second quarter, demonstrating consistent growth and operational excellence in a dynamic market environment.

Financial Highlights

The lubricant giant reported a revenue from operations of ₹1,497.00 crore for the quarter, marking a 7% year-on-year increase. The company's EBITDA rose by 8% to ₹349.00 crore, while profit after tax (PAT) grew by 5% to ₹244.00 crore compared to the same period last year.

For the first half, Castrol India's performance remained robust:

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹3.50 per equity share. This dividend will be payable on or before September 3, with August 11 set as the record date for shareholder eligibility.

Operational Highlights

Kedar Lele, Managing Director of Castrol India Limited, commented on the company's performance: "We delivered a steady second quarter, building on the momentum from Q1, while navigating a complex and evolving macro environment. We stayed focused on execution—expanding our reach in rural markets, growing our presence in industrial business, and continuing to offer our customers quality and convenience."

Key operational achievements for the quarter include:

1. Industrial Momentum: The recently launched Rustilo (DW 800) range of rust preventives now serves over 100 customers in automotive, bearings, tube, and metal manufacturing sectors.

2. Expanded Distribution: Castrol has extended its presence to over 160,000 outlets, including 32,000+ bike points and 11,000+ multi-brand car workshops.

3. Rural Growth: The company reported consistent double-digit growth in rural India, supported by a digital transformation of its distributor management system.

4. Mechanic Engagement: FastScan, Castrol's flagship mechanic connect app, is now used by over one million mechanics, processing more than 200,000 transactions daily.

5. Brand Strengthening: Castrol EDGE participated in high-profile events, reaching approximately 3 million biking and racing enthusiasts.

6. Sustainability Initiatives: The company introduced India's first-of-its-kind RRBO-based engine oils for BS-IV vehicles in collaboration with a leading automobile manufacturer.

Future Outlook

Lele expressed optimism about the company's future, stating, "Industrial is a long-term growth area for us, and we've seen encouraging traction in the first half—new customers, stronger momentum, and more locally-made products. At the same time, our rural strategy is playing out well, and we'll keep strengthening it in the coming months."

Corporate Governance

In a move to enhance its corporate governance practices, Castrol India has appointed M/s. Parikh & Associates as Secretarial Auditors for a five-year term, subject to shareholder approval.

Castrol India continues to demonstrate resilience and adaptability in a challenging market, leveraging its strong brand presence, innovative product portfolio, and strategic initiatives to drive growth and create value for its stakeholders.

Castrol India Limited has announced strong financial results for the second quarter (Q2) and first half (H1), showcasing resilient performance amidst a complex macroeconomic environment.

Q2 Highlights

• Revenue from operations increased by 7% year-over-year to ₹1,497.00 crore
• EBITDA rose 8% to ₹349.00 crore
• Profit After Tax (PAT) grew 5% to ₹244.00 crore

H1 Performance

• Revenue from operations reached ₹2,919.00 crore, up 7% compared to H1 of previous year
• EBITDA climbed 7% to ₹657.00 crore
• PAT improved by 6.5% to ₹477.00 crore

The Board of Directors has declared an interim dividend of ₹3.50 per share, payable on or before September 3.

Strategic Initiatives and Growth Drivers

Kedar Lele, Managing Director of Castrol India Limited, attributed the company's performance to several key factors:

1. Rural Market Expansion: Consistent double-digit growth in rural India, supported by portfolio expansion and increased physical presence.

2. Industrial Sector Growth: Launch of new products like the Rustilo (DW 800) range of rust preventives, serving over 100 customers in automotive, bearings, tube, and metal manufacturing sectors.

3. Distribution Network Enhancement: Presence in over 160,000 outlets, including 32,000+ bike points and 11,000+ multi-brand car workshops.

4. Digital Transformation: Implementation of a distributor management system (DMS) across distributors and rural Castrol sub-distributors.

5. Mechanic Advocacy: The FastScan app, Castrol's mechanic connect platform, now boasts over a million users with more than 200,000 daily transactions.

6. Brand Strengthening: Successful campaigns like '#GarmiMeinBhi3xProtection' for Castrol Activ, reaching over 258 million consumers.

7. Sustainability Initiatives: Introduction of India's first RRBO-based engine oils for BS-IV vehicles, in collaboration with a leading automobile manufacturer.

Looking Ahead

Lele expressed optimism about the company's future, particularly in the industrial sector, citing new customer acquisitions, stronger momentum, and an increase in locally-made products. The company plans to continue strengthening its rural strategy in the coming months.

Recognition

Castrol India's efforts in various areas have been acknowledged:

• The Patalganga plant received the Golden Peacock Award for Occupational Health and Safety
• The company's Annual Report won Platinum at the LACP Spotlight Awards

As Castrol India continues to navigate the evolving market landscape, its focus on innovation, sustainability, and strategic growth initiatives positions it well for continued success in the lubricant industry.