Castrol India's Q4 Profit Surges on Steady Auto Lubricant Demand

Castrol India Limited, a leading player in the Indian lubricant market, reported a 12% rise in quarterly profit for the fourth quarter, driven by steady demand for its auto lubricant products. The company, 51% owned by British oil major BP, saw its profit after tax reach ₹2.71 billion ($31 million) in the October to December quarter, up from ₹2.42 billion in the same period last year. Quarterly revenue also grew by 7.1% to ₹13.54 billion, thanks to higher sales of lubricants for two-wheelers and commercial vehicles.

The Indian automotive market has witnessed a steady increase in vehicle sales, particularly in the two-wheeler and commercial vehicle segments. According to industry data, two-wheeler sales grew about 3% in the quarter, while commercial vehicle sales rose 1.2%. This increased demand for vehicles directly translates to higher demand for lubricants, benefiting companies like Castrol India.

Castrol India has capitalized on this trend by expanding its service and maintenance network and launching new products to cater to the growing market. In the fourth quarter, the company announced a strategic collaboration with Ki Mobility Solutions (KMS) to expand India's automotive aftermarket ecosystem via 'yTVS,' KMS's digitally integrated multi-brand service platform for two and four-wheelers. This partnership has helped Castrol India strengthen its service and maintenance network, contributing to its Q4 profit growth.

In addition to its strategic partnership with KMS, Castrol India has expanded its service network with 230 Castrol Auto Service (CAS) centers in 110+ cities across India, 5,215 Castrol Bike Points, and 42 Castrol Express Oil Change outlets across the country. This expansion has helped the company tap into new markets and increase its customer base, contributing to its Q4 profit growth.

Castrol India's strategic focus on service & maintenance and expansion into new segments like electric mobility have significantly contributed to its Q4 profit growth. The company's partnership with KMS and expansion of its service network have helped it balance its volumes and margins, deliver bottom-line growth, and maintain a strong position in the competitive lubricants market. As the Indian automotive market continues to grow, Castrol India is well-positioned to capitalize on the steady demand for auto lubricants and maintain its market leadership.