Q3 2024 Castrol India Ltd Earnings Call Transcript
Key Points
- Castrol India Ltd (BOM:500870) reported a 9% increase in revenues for the third quarter of 2024, indicating strong financial performance.
- The company achieved an 8% volume growth in the third quarter compared to the previous year, with significant growth in the commercial vehicle segment.
- Castrol India's strategic focus on expanding its distribution network has resulted in a national footprint exceeding 136,000 outlets.
- The company has made significant progress in sustainability, increasing recycled content in plastic bottles to 50% and shifting to renewable energy sources in its plants.
- Castrol India Ltd has launched new products, including rust preventive products and auto care ranges, expanding its portfolio beyond traditional lubricants.
- Despite the revenue growth, there was an 8% decline in revenues compared to the sequential quarter, indicating potential volatility.
- The company's margins are expected to remain within a range of 22% to 25%, with no significant margin improvement anticipated despite lower crude prices.
- The impact of geopolitical tensions on raw material costs remains uncertain, posing a potential risk to future financial performance.
- The company's investment in the data center liquid cooling market is still in the pilot phase, with commercialization and revenue generation yet to be realized.
- Employee benefit expenses have increased significantly, partly due to restructuring costs, which may impact profitability if not managed effectively.
Ladies and gentlemen, welcome to our three Q FY 2024 earnings conference call for Castrol India Limited.
(Operator Instructions)
Also, please note that this conference call may contain certain forward-looking statements which are based on the beliefs, opinions and expectations of the company. As on the date of this call, these statements are not a guarantee of future performance and involve certain risks and uncertainties which are difficult to predict.
we have with us, Mr Sandeep Sangwan, managing director Castrol India Limited and Mister Depesh Bakshi co and whole time director Castrol India Limited.
I now hand the conference over to Mr Sangwan for his remarks.
Hi, good morning, everyone. And thank you for joining Castrol India's third quarter and 9 months, 2024 earnings call.
I hope you and your family are in good health and all in a festive mood because of Diwali. So I'd like to start by wishing every one of you and your families. A
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