Castrol India Ltd (NSE:CASTROLIND)
₹ 184.79 -0.50 (-0.27%) Market Cap: 182.84 Bil Enterprise Value: 172.24 Bil PE Ratio: 19.08 PB Ratio: 9.62 GF Score: 82/100

Q1 2025 Castrol India Ltd Earnings Call Transcript

Apr 29, 2025 / 06:45AM GMT
Release Date Price: ₹203.21 (-3.01%)

Key Points

Positve
  • Castrol India Ltd (BOM:500870) reported a 7% year-on-year increase in revenue, reaching INR1,422 crores in Q1 2025.
  • Profit before tax rose by 7% year-on-year to INR313 crores, and profit after tax increased by 8% to INR233 crores.
  • The company expanded its Pan-India network to approximately 148,000 outlets, surpassing previous milestones.
  • Castrol India's marketing campaign featuring Shah Rukh Khan reached over 220 million consumers, enhancing brand visibility.
  • The company signed a supply agreement with a motorcycle manufacturer for its Castrol Power 1 engine oil, boosting its product offerings in the two-wheeler segment.
Negative
  • EBITDA margins were at the lower end of the guidance range due to increased advertising and promotional expenses.
  • The industrial segment, while growing, has a slower growth rate compared to the automotive segment.
  • The impact of ForEx volatility has increased costs, affecting overall profitability.
  • The company's expansion into the EV segment is still in early stages, with negligible current revenue contribution.
  • The strategic review by BP PLC of Castrol's global business could lead to uncertainties in future operations.
Operator

Ladies and gentlemen, welcome to our 1Q 2025 earnings conference call for Castrol India Limited. (Operator Instructions) We have with us Mr. Kedar Lele, Managing Director, Castrol India Limited.

I now hand the conference over to Mr. Lele. Thank you, and over to you, sir.

Kedar Lele
Castrol India Ltd - Managing Director

Thank you. Namaskar and good afternoon, everyone. Thank you for participating in Castrol India's first quarter FY 2025 earnings call. I'm happy to reconnect with you all today. In terms of company's performance, we are glad to announce that Castrol India has begun the new year on a strong note with sound performance.

As you might be aware, our reporting follows the January to December calendar year and hence, this is Q1 for us. Our relentless efforts towards product and service innovation, expanding distribution investment in our brand have spurred growth in volume despite the macroeconomic headwinds from input costs and ForEx volatility. This shows our residence through different market cycles. Speaking of our financial

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