Castrol India: Moving in the slow lane

Input cost pressure and lower volumes impact June quarter performance

Destocking because of the goods and services tax (GST) hit Castrol India’s performance in the June quarter (second quarter or Q2, as it follows January-December financial year). And, there was some lingering effect of demonetisation as well.
 
The impact was more profound on commercial vehicle oil volumes (40 per cent or more of the total volumes). Though the company still managed to register growth in the personal mobility segment, power brands and the industrial segment, it was not enough to prevent total revenues from operations declining 10 per cent over a year.
 
A Rs 6 per litre fall