Castrol India shares gain after 2x jump in Q2 net profit

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Castrol India rose 1.99% to Rs 141 after the company’s standalone net profit jumped 114.06% to Rs 140 crore on a 81.32% surge in revenue from operations to Rs 889.60 crore in Q2 June 2021 (Q2 FY22) over Q2 FY21.

Castrol India reported a solid financial performance and resilient business delivery in Q2 2021 maintaining the momentum built over the previous few quarters. The company delivered a strong set of numbers with both topline and bottom line seeing good growth as compared to the corresponding period of last year, which was subdued on account of a national lockdown brought about by the first wave of the COVID-19 pandemic.

Standalone profit before tax soared 114.91% to Rs 190.20 crore in Q2 FY22 as against Rs 88.50 crore in Q2 FY21. The Q2 earnings was declared post trading hours yesterday, 2 August 2021.

Owing to the Covid-19 second wave, the quarter saw challenges in the form of localized lockdowns, muted demand, as well as a sharp rise in input costs. The timely pricing interventions, along with agility and responsiveness helped the firm navigate this dynamic market situation. Castrol India continued to invest in its brands with increased marketing and advertising spends to support value delivery to customers and reinforce brand salience.

In its endeavour to deliver a quick and reliable service brand experience to consumers in collaboration with Jio-bp at their retail sites, the company has recently launched a new concept of Castrol Express Oil change outlets which offer quick oil change service for consumers on the go. It has also leveraged digital platforms to continue building engagement with the biker community with the high-performance synthetics range of Castrol Power1 Ultimate two-wheeler engine oils through performance-imagery led impact properties including Bollywood movie launch Toofaan.

The board of Castrol India at its meeting held on Monday, 2 August 2021 recommended an interim dividend of Rs 2.50 per share (2020: interim dividend Rs 2.50 per share and final dividend Rs 3 per share). The record date for the purpose of said interim dividend, which would be paid on or before 1 September 2021, is 12 August 2021.

Castrol India manufactures and markets automotive and industrial lubricants and specialty products. The company’s products include lubricating oils, greases and brake fluids.

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