Castrol India posts higher quarterly profit on rural demand, industrial segment strength

Engine oil maker Castrol India posted a 3.7% rise in its first quarter profit on Tuesday, supported by higher volumes across rural and premium segments and growth in its industrial business.

The lubricant maker’s profit after tax rose to 2.42 billion rupees ($25.60 million) in the quarter ended March 31, from 2.33 billion rupees a year earlier.

Here are the details:

Revenue from operations increased about 9% to 15.45 billion rupees, driven by continued market-share gains and expansion across rural and urban markets.

Growth was supported by double-digit expansion in the rural portfolio and continued traction in premium products in urban markets, the company said in an exchange filing.

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Its EBITDA increased 7% year-on-year to 3.29 billion rupees, helped by higher volumes across the automotive and industrial lubricant segments.

However, total expenses rose 9% during the quarter as raw material and packing material costs increased year-on-year, limiting margin expansion.

The company also saw early signs of currency volatility and rising raw material costs toward the end of the quarter due to geopolitical developments, Chief Financial Officer Mrinalini Srinivasan said.