Castrol: Sales and profits drop… - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Castrol: Sales and profits drop…

Feb 6, 2001

Castrol has reported its full year results for FY01. Sales of the company have declined for the first time since FY92. The company has been affected by the negative growth in the lubricants industry.

(Rs m) FY00 FY01 Change
Sales 10,275 10,201 -0.7%
Other Income 231 187 -19.0%
Interest 26 72 175.2%
Profit after Tax/(Loss) 2,044 1,344 -34.2%
Net profit margin (%) 19.9% 13.2%  
No. of Shares (eoy) 124 124  
Diluted Earnings per share 16.5 10.9  
P/E Ratio   26  

The company has been hit by a double whammy. With soaring crude oil prices its basic feedstock - base oil - prices have been on the rise. Further, Castrol imports its feedstock and with the rupee depreciating their costs have spiraled. The increased costs could not be passed on, as the company faces increasing competition from the oil PSU's whose products are positioned at lower price points. Consequently, margins have come under squeeze.

The company has written off Rs 54.7 m as voluntary retirement costs (VRS). This has further impacted the bottomline. The company has reported net earnings below our FY01 estimates of Rs 1,491 m, which excludes VRS costs.

The stock price has surged over the last 3 months due to the announcement of a buyback. At Rs 284 the company trades at a multiple of 26x on FY01 earnings.

Equitymaster requests your view! Post a comment on "Castrol: Sales and profits drop…". Click here!


More Views on News

CASTROL INDIA Announces Quarterly Results (1QFY21); Net Profit Down 64.2% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, CASTROL INDIA has posted a net profit of Rs 654 m (down 64.2% YoY). Sales on the other hand came in at Rs 5 bn (down 52.8% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA Announces Quarterly Results (3QFY20); Net Profit Up 28.0% (Quarterly Result Update)

Feb 1, 2020 | Updated on Feb 1, 2020

For the quarter ended December 2019, CASTROL INDIA has posted a net profit of Rs 3 bn (up 28.0% YoY). Sales on the other hand came in at Rs 10 bn (down 2.1% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA 2017-18 Annual Report Analysis (Annual Result Update)

Apr 30, 2019 | Updated on Apr 30, 2019

Here's an analysis of the annual report of CASTROL INDIA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of CASTROL INDIA. Also includes updates on the valuation of CASTROL INDIA.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 24, 2020 (Close)


  • Track your investment in CASTROL INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks