MOSL: CASTROL INDIA (Buy)-Sales volume slips due to commercial/industrial segments
CASTROL INDIA: Sales volume slips due to commercial/industrial segments
(CSTRL IN, Mkt Cap USD2.2b, CMP INR153, TP INR190, 24% Upside, Buy)
- 1QCY19 revenue came in line with our estimate at INR9.8b (+5% YoY, -6% QoQ). EBITDA stood at INR2.8b (our estimate INR3.1b, +3% YoY, -11% QoQ) led by higher total expenditure. PAT stood at INR1.85b (v/s estimate of INR2.1bn, +2% YoY, -13% QoQ). Other expenditure and depreciation came in higher due to marketing related expenses.
- Realization up 7% YoY/1% QoQ: Realization for 1QCY19 stood at INR193.7/liter v/s INR181.1/liter in 1QCY18 and INR191.4/lit in 4QCY18, due to change in the product mix. Lower base oil cost helped gross margins to increase from INR101.2/liter in 4QCY18 to INR103.1/liter in 1QCY19.
- Volume de-growth of 2% in 1QCY19: CSTRL's total volume stood at 50.4m liters (-2% YoY and -7% QoQ). Personal mobility was a key driver, while commercial vehicle and industrial segment showed negative growth. Industry growth was ~-9% for Jan'19/Feb'19 (-5% in 4QCY19), amid lower industrial production and slowing economic activity.
Castrol India is a manufacturer, distributor and marketer of lubricating oils, greases and related services to automotive, industrial, marine, aviation, oil exploration and production customers across the world. For automotive lubrication (including motorcycles 2-stroke and 4-stroke engines, car petrol and diesel engines), Co.'s products include a range of manual and automatic transmission fluids, chain lubricants and waxes, coolants, suspension fluids, brake fluids, greases, cleaners and maintenance products. Co. also produces products for agricultural machinery, plant, general industry and marine engineering uses.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.