Castrol's net profit nearly doubles to Rs244cr in Q1, revenue robust; Stock surges 3%

The company posted a net profit of Rs243.6cr in the latest quarter, higher from Rs125.2cr in the corresponding period of the previous year.

Apr 27, 2021 11:04 IST India Infoline News Service

Castrol India
Castrol India reported a strong financial performance for the quarter ending March 2021 (Q12021) period. The company posted a net profit of Rs243.6cr in the latest quarter, nearly double from Rs125.2cr in the corresponding period of the previous year. In December 2020 quarter, Castrol recorded a profit of Rs187.7cr.

Also, the top-line witnessed healthy growth. Revenue from operations stood at Rs1,138.7cr in the quarter under review against Rs688cr of Q12020 and Rs935.2cr of Q42020.

Castrol follows a calendar year for its financial performance.

Sandeep Sangwan, Managing director, Castrol India said, "Castrol India Limited reported a strong financial delivery in 1Q 2021 building on a resilient second-half performance for FY 2020. We delivered robust revenue and profit growth with 1Q revenue from operations @ INR 1139 crores (66% higher) and 1Q Profit Before Tax @ INR 332 crores (96% higher) versus 1Q 2020 which saw the onset of the Covid-19 pandemic and resultant business slow down beginning March 2020."

Sangwan highlighted that focused investments, interventions and actions are taken in the second half of 2020 towards the brand building with increased marketing and advertising spends, new product introductions, as well as corrective pricing, have yielded a positive impact on overall topline growth. This has been aided by improving demand trends especially in tractor and SUV sales in 1Q 2021.

Further, Sangwan said, "Our cost efficiency programmes and judicious working capital management efforts led to healthy cash from operations @ INR 269 crores in the quarter, which is equivalent to 1.1 times of Profit After Tax."

On the second wave of Covid-19, Sangwan says, "The second wave of the Covid-19 pandemic in India is resulting in a market slowdown in various parts of the country. In addition, supply disruptions on account of base oil and raw materials availability, logistics challenges and rupee depreciation are likely to adversely impact demand and supply. The management is keeping a close watch on the situation and responding with appropriate actions as needed."

At around 11.20 am, Castrol was trading at Rs128.95 per piece up by Rs3.70 or 2.95% on Sensex. 

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