Castrol India shares in focus after BP launches ‘strategic review’ of global lubricants business

Castrol India on Wednesday, February 26, said British Petroleum (bp) is conducting a strategic review of its global lubricants business (Castrol) with the intention of accelerating its next phase of value delivery.It said that Castrol has significant growth ambitions, including growing its core mobility businesses, expanding participation in industrial lubricants, enhancing its mobility services and diversifying into data centre fluids.

“Proceeds from any potential transaction that may arise as a result of the review will be allocated to strengthening bp’s balance sheet,” it added.

For the December quarter, Castrol India’s net profit grew by 12% from last year and over 30% from the previous quarter to ₹271 crore.Revenue increased by 7% from last year and 5% from the September quarter to ₹1,353 crore.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 14% year-on-year to ₹375 crore. When compared to the September quarter, that figure went up by 31%.EBITDA margin for the quarter went up by 170 basis points from last year and over 550 basis points from the previous quarter to 27.7%.

Castrol announced dividends worth ₹9.5 per share, which is also included a special dividend of ₹4.5 per share.

At the end of the December quarter, Castrol India promoters had a 51% stake in the company. Castrol Ltd. is owned by British Petroleum (bp).

Castrol India shares were trading 0.3% higher at ₹217.98 apiece. The stock has gained 28.56% int he past month.

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