Castrol India reports strong Q4 performance with 12% profit growth, sets record annual revenue

Castrol India Limited, a leading lubricant manufacturer, announced robust financial results for the fourth quarter of 2024, with profit after tax rising 12% to ₹271 crore compared to ₹242 crore in the same period last year. The company's revenue from operations grew 7% to reach ₹1,354 crore in Q4.

The strong quarterly performance contributed to record-breaking annual figures, with the company posting its highest-ever revenue of ₹5,365 crore for the full year 2024, marking a 6% increase from ₹5,075 crore in 2023. Full-year profit after tax rose 7% to ₹927 crore, while profit before tax increased 6% to ₹1,258 crore.

To commemorate Castrol's 125th anniversary globally and celebrate its strongest year in India, the board recommended a final dividend of ₹9.5 per share, including a special dividend of ₹4.5 per share, bringing the total dividend for 2024 to ₹13 per share.

Managing Director Kedar Lele attributed the success to significant product innovations and expanded market reach. "We strengthened our presence in rural India, now reaching over 36,000 workshops and stores, as part of our wider network of over 143,000 outlets across the country," Lele said. He outlined plans for 2025, including the relaunch of ACTIV, the company's biggest brand, in the first quarter.

The company launched new variants of Castrol EDGE for SUVs, hybrids, and European vehicles, as well as introducing CRB TURBOMAX+ CK4, a premium truck lubricant. Castrol also expanded its Auto Care range and developed new rust-preventive solutions.

Chief Financial Officer Deepesh Baxi highlighted the company's ability to maintain growth and profitability despite volatile market conditions. "Optimising costs, operational efficiency along with timely pricing strategies helped strengthen our margins while staying aligned with our strategic goals," he said.

The company increased its recycle content in HDPE plastic bottles to 50% and implementing solar power projects at its Silvassa plant, which reduced CO2 emissions by 45%. Additionally, Castrol trained over 30,000 truck drivers and 15,000 mechanics in 2024 as part of its CSR initiatives.

Looking ahead, the company plans to focus on improving its rural footprint and introducing innovative service offerings across regions, while making its products more accessible and affordable to strengthen its leadership position in the industry.