Castrol India (500870) Q3 2024 earnings summary

Executive summary

• Achieved strong sales volume and profit growth in Q3 2024, driven by operational excellence, innovation, and expanded distribution infrastructure.

• Launched new product lines, including Castrol ON (EV fluids) and AutoCare, and expanded into non-lubricant categories.

• Strengthened brand presence with high-profile campaigns and deepened rural market penetration.

• Unaudited financial results for the quarter and nine months ended 30 September 2024 were reviewed and approved by the Board on 24 October 2024.

• Interim results prepared in accordance with Ind AS 34 and reviewed by statutory auditors.

Financial highlights

• Q3 2024 revenue rose 9% year-over-year to ₹1,288.18 crores; profit before tax up 6% to ₹280 crores.

• Profit after tax for Q3 2024 was ₹207.43 crore, compared to ₹194.42 crore in Q3 2023.

• Nine-month 2024 revenue increased 5% to ₹4,010.96 crores; profit before tax up 3% to ₹887 crores.

• Q3 volume growth was 8% year-over-year, with 55 million liters sold.

• Cash balance as of September 30 was ₹1,200 crores.

Outlook and guidance

• Market volume growth for the year estimated at 4-5%, with Castrol outperforming the market.

• EBITDA margin expected to remain in the 22%-25% range over the next 3-6 months barring major input cost swings.

• CapEx guidance of ₹125-150 crores annually for the next couple of years, focused on organic growth and new business expansion.