Castrol India Limited reports 4Q & Annual Results for 2022

Castrol India Limited (BSE: 500870; NSE: CASTROLIND) has announced its results for the fourth quarter and fiscal year ended 31 December 2022. The Company follows a calendar year basis (January to December) for its financial reporting.

For the full year ended 31 December 2022, the Company registered Revenue from Operations of ₹4,774 Crores, registering an overall revenue growth of 14% compared to ₹4,192 Crores for the full year ended 31 December 2021. Profit Before Exceptional Items & Tax for 2022 stood at ₹1,093 Crores, marking a growth of 6% from ₹1,029 Crores in 2021.

In addition to an interim dividend of ₹3/- per equity share, the Company’s Board of Directors have recommended a final dividend payment of ₹3.50/- per equity share each for the fiscal year 2022, subject to shareholders’ approval.

For the fourth quarter (4Q) from October to December 2022, the Company registered Revenue from Operations of ₹1,176 Crores, achieving a growth of 8% compared to ₹1,091 Crores in 4Q 2021. Profit Before Tax for 4Q 2022 stood at ₹248 Crores, registering a drop of 3% from ₹257 Crores in 4Q 2021.

Commenting on the annual performance and 4Q 2022 results, Sandeep Sangwan, Managing Director, Castrol India Limited, said, “2022 was marked by high forex and inflationary pressures arising from volatile crude oil prices, leading to rising costs of additives and base oil. We balanced our volumes and margins through timely pricing decisions and rigorous cost management and delivered bottomline growth. In 4Q, we bolstered our service & maintenance network with a strategic partnership with Ki Mobility Solutions and expanded the reach of our service brands: Castrol Auto Service, Castrol Bike Points and Castrol Express Oil change.”

Sharing a future outlook, Sandeep Sangwan added, “We will continue to drive long-term growth for Castrol through our future-ready strategy, which focuses on an enhanced play in service & maintenance, and a foray into new segments including automotive aftercare and electric mobility. In the EV space, in 2023, we will launch our Castrol ON range of EV fluids for the aftermarket and collaborate with two-wheeler & four-wheeler OEMs to support their EV transition. In addition, we are supporting mechanics to get EV-ready with certified trainings that will help create an eco-system enabled to serve EVs better.”

Key highlights from Castrol India in 4Q 2022 included:

• In November 2022, Castrol India announced a strategic collaboration with ki Mobility Solutions (KMS), to leverage each other’s strengths and expand India’s automotive aftermarket eco-system via ‘myTVS’, KMS’s digitally integrated multi-brand service platform for two and four wheelers. The deal included a ₹487.5 Crores investment by Castrol India and acquisition of a 7.09% stake in KMS, which was completed in January 2023.
• Castrol further expanded its service & maintenance network in 4Q 2022 with 230 Castrol Auto Service (CAS) centers in 110+ cities across India, 5,215 Castrol Bike Points and 42 Castrol Express Oil Change outlets across India.
• Launched a new marketing campaign ‘CompromiseMehngaPadega’ for Castrol Activ, demonstrating Activ’s superior protection for bike engines, and how it shields bike owners from expenses related to engine breakdown.
• Introduced a new, more sustainable packaging for Castrol POWER1 ULTIMATE our premium engine oil brand, in line with Castrol’s global PATH360 sustainability agenda. The brand is now available in a 100% Post-Consumer Recycled (PCR) bottle, made from reprocessed plastic waste substituting virgin plastic.
• Extended Castrol’s EV-readiness training program to 100 top-tier car and bike mechanics in Chennai, to support mechanic upskilling and create an EV-ready eco-system. The ASDC certified training was also conducted earlier in Delhi and will soon be expanded across other cities in India.
• Castrol India was authorized by the Directorate of International Customs as an Economic Operator – Tier 2 certified organization, in recognition of the high safety, security, and compliance standards demonstrated by Castrol.

Notes to editors

Summary of CIL financial results and comparison to last year

*CIL follows a calendar year basis (CY: January to December) for financial reporting