Castrol India reports flat net profit as high forex and volatility in crude prices keeps company on toes

Castrol India reported a net profit of Rs 193 crore for Q4 CY22, a slight jump of 2.12 percent over the previous year’s net profit of Rs 189 crore.

The company follows a calendar year basis (January to December) for its financial reporting.

In the same way, the company’s sales for Q4 CY22 were reported to be Rs 1176 crores, which was 8 percent more than the Rs 1091 crores it made in Q4 CY2021.

Sandeep Sangwan, Managing Director, Castrol India , 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.”

He added that the company balanced its volumes and margins through timely pricing decisions and rigorous cost management, thereby delivering  bottom-line growth. “In Q4, we bolstered our service and 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”, Sangwan continued.

Sharing a future outlook, Sangwan further noted , “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”.

The company management said that in the EV space, in 2023, it will launch the Castrol ON range of EV fluids for the aftermarket and collaborate with two- and four-wheel OEMs to support their EV transition. Furthermore, it claims to be assisting mechanics in becoming EV-ready through certified training, which will aid in the creation of an eco-system capable of better serving EVs.