Castrol India Q3 profit falls 49% as raw material costs squeeze margins

what happened

According to TradingView, Castrol India's third-quarter revenue dropped 7.3% from the previous quarter, to ₹1,734.7 crore from ₹1,871.5 crore. Net profit slumped 49.3% to ₹176.4 crore, while EBITDA fell 47% to ₹262.3 crore. The EBITDA margin shrank from 26.4% to 15.1%.

Managing director Saugata Basuray blamed the decline on a steep jump in raw material prices and unfavourable currency moves, though he said earlier price increases softened the hit. CFO Mrinalini Srinivasan pointed to 11% EBITDA growth over the first nine months of the calendar year, and warned that conditions are likely to stay unstable and inflationary.

The company also said its distribution footprint reached about 1.67 lakh outlets, including 46,000 rural ones, and its service network now includes more than 870 Castrol Auto Service centres. Shares closed Friday, October 23, down 1.39% at ₹194.64.

why it matters

For lubricant makers, rising input costs are the main threat to margins, and this quarter shows how quickly they can cut into profit. The stock is up 1.8% so far this year, so the sharp earnings drop could weigh on investor sentiment. The next quarter will show whether pricing and cost measures can offset further cost increases.

market impact

Castrol India and lubricants sector: higher input costs pressure margins and weigh on the stock

tags

instruments