Castrol India reported growth of 3.99% in top line sales for the Sep-20 quarter at Rs883.10cr. The operating profits for the quarter ended Sep-20 was up 18.06% at Rs266.70cr while the net profits were up by 8.60% at Rs204.60cr on a yoy basis on the back of the company achieving higher sales at lower costs on favourable working capital.
This had significant impact on the margins of Castrol. For the Sep-20 quarter, the operating profit margins or OPM was up by 360 bps at 30.20% on the back of favorable working capital related costs. Net profit margins or NPM for the quarter also expanded by 98 bps at 23.17%.
Financial highlights for Sep-20 compared yoy and sequentially
|
Particulars |
Sep-20 Quarter |
Growth (yoy) |
Growth (qoq) |
|
Total Revenues |
Rs883.10cr |
+3.99% |
+80.01% |
|
Operating Profit |
Rs266.70cr |
+18.06% |
+257.03% |
|
Net Profits |
Rs204.60cr |
+8.60% |
+212.84% |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs2.07 |
Rs1.90 |
Rs0.66 |
|
Operating Margins |
30.20% |
26.60% |
15.23% |
|
Net Profit Margin |
23.17% |
22.19% |
13.33% |
Key takeaways from the Sep-20 quarter results
-
Castrol operates in a single business segment of automobile lubricants but the company had a tough June quarter as most vehicles were off the roads leading lower sales off take and lower profits. However, now sales are back to pre-COVID levels for Castrol.
-
Aggressive working capital management was the focus of the company during the COVID period. During the nine months ended Sep-20, Castrol generated Rs624cr in cash from operations by tweaking working capital mix of the company.
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