Castrol India Q2FY25 results: Net profit increases 6.7% to Rs 207 cr

Engine oil maker Castrol India reported a 6.7 per cent increase in second-quarter profit on Thursday, driven by continued demand for its automobile lubrication products.

The company, in which oil major BP has a 51 per cent stake, said profit after taxes rose to Rs 207 crore ($24.6 million) in the July-September quarter, from Rs 194 crore a year ago.

India's overall vehicle sales have been strong for the past few quarters, benefiting companies like Castrol, which generates over 80 per cent of its revenue from the automobile lubricants market.

The company, which also makes industrial lubricants like turbine oils, said revenue from operations grew nearly 9 per cent to Rs 1,288 crore in the quarter.

 

"Performance was driven by strong volume growth across categories," the company said in a statement, without giving a break up of its revenue distribution.

Its expenses grew 9.5 per cent in the quarter, with the cost of raw and packing materials consumed, among its biggest, increasing 9 per cent.

Castrol India's shares closed 1.8 per cent lower ahead of results. They have risen 15.4 per cent so far this year, while those of smaller peer Gulf Oil Lubricants India have jumped 60.6 per cent.