Castrol India rises after Q3 PAT rises 9% YoY

Castrol India rose 5.93% to Rs 115.25 after the company's net profit rose 8.6% to Rs 204.6 crore on 4% rise in net sales to Rs Rs 883.1 crore in Q3 September 2020 over Q3 September 2019.

Profit before tax rose 17% and stood at Rs 277.5 crore in Q3 September 2020 compared with Rs 237.2 crore in Q3 September 2019. Current tax expense surged 63.66% to Rs 76.10 crore in Q3 September 2020 over Q3 September 2019. The result was announced after market hours yesterday, 27 September 2020.

Commenting on the Q3 performance, Sandeep Sangwan, MD of Castrol India said, Castrol India has recorded a strong performance in the third quarter of 2020. Partial revival of pent up demand, a robust supply chain and distribution network, investment in our brands along with judicious working capital management contributed to us delivering a good set of numbers, including growth across all spaces. Robust working capital management which saw us generate Rs 624 crore net cash from operations in 9M 2020 which is more than 150% of PAT, along with judicious cost and efficiency management programmes have helped us maintain a current strong liquidity and financial position to be able to meet any near-term challenges.

Shares of the automotive lubricant manufacturer lost 2.68% in the past three days.

Meanwhile, the board of directors of the company declared an interim dividend of Rs 2.5 per share. The record date is 6 November 2020 and the dividend would be paid on 26 November 2020.

Castrol India manufactures and markets automotive and industrial lubricants and specialty products. The company's products include lubricating oils, greases and brake fluids.

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