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Castrol India: Lower input cost offsets volume decline - Views on News from Equitymaster
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  • Mar 1, 2016 - Castrol India: Lower input cost offsets volume decline

Castrol India: Lower input cost offsets volume decline
Mar 1, 2016

Castrol India Ltd has announced results for the quarter and the year ended December 2015. The company has reported a year on year (YoY) decline of 7.9% in the net sales while net profits for the quarter grew by 6.7% YoY.

Performance summary

  • Revenues for the quarter registered a de-growth of 7.9% on a year on year (YoY) basis. For the full year, the decline in the revenues was 2.8% YoY.
  • Operating profits for the quarter grew 2.8% YoY with margins at 26.6% as compared to 23.8% in 4QCY14. For CY15, operating profit was up 25% YoY while operating profit margin stood at 26.8%, an expansion of 6.0% YoY
  • Net profit for the quarter grew by 6.7 % YoY with net profit margin at 17.9% versus 15.4% in 4QCY14. For CY15, the bottomline grew by 29.7% YoY with margins at 18.7% as compared to 14.0% in CY14.
  • A final dividend of Rs 5 per share has been recommended by the Board of Directors of the company. This is an addition to an interim dividend of Rs 4 per share. At current stock price, this implies a dividend yield of 2.5%.

Financial performance snapshot

Rs m 4QCY14 4QCY15 Change (%) CY14 CY15 Change (%)
Net sales 8,559 7,882 -7.9% 33,808 32,853 -2.8%
Other operating income 34 27 -20.6% 115 127 10.4%
Total income from operations 8,593 7,909 -8.0% 33,923 32,980 -2.8%
Expenditure 6,523 5,789 -11.3% 26,756 24,032 -10.2%
Operating profit (EBDITA) 2,036 2,093 2.8% 7,052 8,821 25.1%
EBDITA margin (%) 23.8% 26.6% 20.9% 26.8%
Other income 108 223 106.5% 481 959 99.4%
Interest 6 2 -66.7% 24 8 -66.7%
Depreciation 109 91 -16.5% 361 390 8.0%
Profit before tax 2,063 2,250 9.1% 7,263 9,509 30.9%
PBT margin (%) 24.1% 28.5% 21.5% 28.9%
Tax 743 842 13.3% 2,518 3,357 33.3%
Profit after tax/(loss) 1,320 1,408 6.7% 4,745 6,152 29.7%
Net profit margin (%) 15.4% 17.9% 14.0% 18.7%
No. of shares (m) 495
Diluted earnings per share (Rs)* 12.4
P/E ratio(x)* 29.3

*On a trailing 12 months basis

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