Castrol Q3FY22 net profits flat at Rs187 crore as higher raw material costs offset top line growth

2 Nov 2022 , 11:06 AM

Castrol Ltd reported 4.46% growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,121.07 crore.

Revenue fell by -9.72% in sequential terms. For the September 2022 quarter, the growth in top line was fairly resilient in a challenging inflationary environment.

Castrol has used the quarter to strengthen its service and maintenance network by expanding its Castrol service centres and its oil change centres.

In the quarter, it also launched the POWER1 ULTIMATE, in a 100% recycled bottle in order to reduce the carbon footprint of the company and cutting down on plastic waste.

Consolidated net profits for September 2022 quarter was absolutely flat at Rs187.17 crore while the sequential profits were lower by -9.26% compared to the previous quarter.

The company witnessed a spike in the input costs amidst sharply higher crude prices even as it retained some pricing power in its core lubricant business.

Apart from inflation pressures hitting raw material prices, the company also faced forex challenges. Net profit margins were 16.7% for the quarter compared to 17.33% in the year ago period.

Financial highlights for Sep-22 compared yoy and sequentially

	Castrol Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,121.07	₹ 1,073.16	4.46%	₹ 1,241.71	-9.72%
Net Profit (Rs cr)	₹ 187.17	₹ 185.96	0.65%	₹ 206.26	-9.26%
Diluted EPS (Rs)	₹ 1.89	₹ 1.88		₹ 2.09
Net Margins	16.70%	17.33%		16.61%