Castrol India (500870) Q2 2024 earnings summary

Executive summary

• Achieved strong revenue and profit growth in 2Q24, driven by strategic brand investments and product innovation.

• Unaudited financial results for the quarter and six months ended 30 June 2024 were reviewed and approved by the Board on 30 July 2024.

• Statutory auditors conducted a limited review and found no material misstatements.

• Launched new product variants and expanded auto care range, increasing market presence across 135,000+ outlets.

• Continued focus on sustainability with rainwater harvesting and solar power projects, and inaugurated a new technology center for R&D.

Financial highlights

• 2Q24 revenue from operations was INR 1,398 crores, up 5% year-on-year and 6% sequentially.

• Profit after tax for Q2 2024 was ₹232.17 crore, compared to ₹225.27 crore in Q2 2023.

• EPS for Q2 2024 was ₹2.35, up from ₹2.28 in Q2 2023.

• 1H24 revenue reached INR 2,723 crores, a 4% increase year-over-year; profit before tax rose 2% to INR 606 crores.

• Volume for 2Q24 was 61 million liters, up from 57 million liters in 2Q23 and 1Q24.

Outlook and guidance

• Management expects continued momentum, supported by stabilized input costs and ongoing investments in innovation and brand.

• Indian lubricant market projected to grow into the 2030s and 2040s, with hybrid vehicles seen as a key growth driver.

• The Board recommended an interim dividend of ₹350 per share, higher than the previous year's ₹300 per share, with a record date of 7 August 2024.