Castrol India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Castrol India reported its Q3CY18 numbers, which were largely in line with our estimates both on the topline as well as profit front. Revenues increased 7.6% YoY to | 926.9 crore in line with our estimates. Volumes reported growth of 4.2% YoY to 51.2 million litre, largely in line with our estimate of 50.9 million litre However, the quarter witnessed a decline of 7.2% YoY in gross margins at | 88.4/litre and in line with our estimate of | 93.3/litre. On...

Long Term Sustenance with Short-term Volatility: Castrol reported revenue of Rs. 10172 Mn during Q2CY18 which was in-line withour estimates (Rs. 9915 Mn) because the season augers well for the company due to higher rural demand.

ICICI Securities Ltd | Retail Equity Research Castrol India reported its Q2CY18 numbers, which were largely in line with our estimates on the topline front. Revenues increased 17% YoY to | 1017.2 crore in line with our estimates. Volumes grew 12% YoY to 57 million litre, above our estimates of 55 million litre However, the quarter witnessed a decline of 6.5% YoY in gross margins at | 81/litre, below our estimate of | 93.3/litre. On account of...

Castrol's Q2CY18 net sales were in line with our estimates although EBTIDA/net profits were lower by 8%/10%, respectively. Net sales grew 16.9% YoY Rs10,172 mn led by volume growth across categories. While realization was slightly weak (-0.9% QoQ), sales volumes at 57mn ltrs were ahead of our estimates. Out of the last ten quarters, it is commendable that the company has delivered volume growth in nine quarters. Castrol's EBITDA grew 20.1% YoY to Rs2,517 mn. However, EBITDA margin were lower than our estimate and contracted 484bps QoQ to 24.7% on account of higher raw material costs and weak realizations....

1 August 2018 CSTRLs 2QCY18 revenue grew 17% YoY (and 10% QoQ) to INR10.2b, beating our estimate of INR9.4b, led by (a) higher volumes at 57m liters (+12% YoY, realization despite price hikes can be attributed to shift in product mix. Reported EBITDA of INR2.5b (+20% YoY, -8% QoQ) was in line with our estimate despite beat on revenues, led by higher than expected raw material margin was 24.7% in 2QCY18 (24.1% in 2QCY17; 29.6% in 1QCY18). PAT grew 19% YoY (-10% QoQ) to INR1.6b against our estimate of INR1.7b, YoY, -24% QoQ), and (b) higher tax rate of 36%. CSTRLs total volumes grew 12% YoY, led by double-digit volume growth in the PCMO segment (~41% volume share) and CVO segment (~46% volume share). CVO segment volume grew higher than PCMO segment; the growth was on account of pickup in economic activity.

Castrol India Ltd's (CIL) Q1CY18 numbers were disappointing and below our estimates. Net revenue & PAT grew marginally by 5.1% & 1.6% YoY respectively, impacted by muted volume growth ( 2.6% YoY). Higher input cost and other expenses resulted in 26bps YoY contraction in EBITDA margins.

Castrol reported revenue of Rs. 9271 Mn during Q1CY18, up by 5.1% YoY drivenby realization growth of 2.4% and volume growth of 2.6% clocking 51.5 Mn Ltwhich is in line with our estimates.

Net sales grew 5.1% YoY Rs9,271 mn led by volume growth across categories. EBITDA margin was lower than our estimate and contracted 26bps YoY to 29.6% as price hikes were more than offset by higher base oil prices and rupee depreciation. Nevertheless, the company has hiked prices by 2-4% recently. We marginally cut our CY18 volume estimates on weaker-than-expected Q1CY18...

Revenue fell by 4.45% to Rs. 927.1 Cr in Q1CY18 when compared to the previous quarter. Castrol India Ltd Q1CY18 results Comment

CSTRL's 1QCY18 revenue grew 5% YoY (but declined 4% QoQ) to INR9.3b,ahead of our estimate of INR9.1b, led by (a) higher volumes at 51.5m liters(+3% YoY, -5% QoQ; our estimate was 51.2m liters), and (b) better realizations at INR180.4/liter (+2% YoY, +1% QoQ; our estimate was INR177/liter). It took price hikes to pass on the increase in raw material cost (up 3% QoQ). Reported EBITDA of INR2.7b (+4% YoY, -11% QoQ) was also above our estimate of INR2.6b, aided by lower than expected raw material cost of INR83.4/liter (+4% YoY, +2% QoQ; our estimate was INR83.6/liter). EBITDA margin was29.6% in 1QCY18 (29.8% in 1QCY17; 31.6% in 4QCY17).