Castrol India posts profit of Rs 501 cr in 2H CY20
Feb 02, 2021
Mumbai (Maharashtra) [India], February 2 : Automotive and industrial lubricant manufacturer Castrol India has posted 54 per cent higher revenue at Rs 1,818 crore in the second half (2H CY20) while profit from operations was 122 per cent higher at Rs 501 crore versus 1H CY20.
Managing Director Sandeep Sangwan said the company delivered a resilient financial performance in a difficult year marked by the pandemic and ensuing external challenges.
In 4Q CY20, Castrol India increased its marketing and advertising spends year-on-year (Rs 65 crore in 4Q 2020 versus Rs 11 crore in 4Q 2019).
"This helped in achieving a top-line growth of 6 per cent versus 3Q 2020. We expect the positive impact of this investment to continue going forward," it said in a statement.
"We have also taken actions to prepare the business for growth in the future, including corrective pricing actions for our commercial vehicles portfolio which has yielded double-digit volume growth in the last quarter as well as inventory reduction for distributors to help improve their working capital."
Castrol India said it continues to invest in digital technology and efficiency programmes leading to robust working capital management and judicious cost management, thus generating healthy cash flow from operations for FY 2020 of Rs 893 crore which is 1.5 times of profit after tax.
The company's lubricants are now available across over 1,350 Jio-bp sites.
The board of directors has recommended a final dividend of Rs 3 per share in addition to an interim dividend of Rs 2.50 per share.
