Castrol India Ltd - Q2 CY21 Result Report - YES Securities

(Rating: ADD, TP: Rs150, Upside: 7%)

- Reported EBITDA and PAT stood at Rs 1.97bn (+107% YoY; -42% QoQ) and Rs 1.4bn (+114% YoY; -43% QoQ). The 1HCY20 was severely impacted by Covid- 1st wave, when sales declined by 37% YoY, as a result the YoY growth continued in 2QCY21 on weak base quarter, albeit the growth momentum slowed sequentially as Covid -2nd wave unfolded

- The sales volume stood at 45mn liters, registering a growth of 55% YoY, but a decline of 26% QoQ, after a strong Jan-Mar'21 quarter when sales stood at 61mn liters (+62% YoY)

- Gross margin and ebitda margin per unit stood weaker on QoQ basis at Rs 99/liter (1Q: Rs 101) and Rs 44/liter (1Q: Rs 56/liter) as higher RM costs were compounded by 14% QoQ higher operating expense

- Maintain ADD with a TP of Rs 150/sh.

Shares of Castrol India Ltd was last trading in BSE at Rs. 140.15 as compared to the previous close of Rs. 139.8. The total number of shares traded during the day was 173071 in over 2584 trades.

The stock hit an intraday high of Rs. 142 and intraday low of 139.55. The net turnover during the day was Rs. 24364142.

Source : Equity Bulls

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