The year 2020 had a great impact on almost all sectors of the world. With the shutdown of world economies, many companies found it difficult to stay afloat. While many struggled through this difficult time, some have been able to cover their losses fairly quickly.
Castrol India Growth
On April 26, 2021, Castrol India, an automotive and industrial lubricant manufacturing company, reported a huge increase in profits during the first quarter of the year. With this rise, the company has almost doubled its profits compared to the previous year.
In the first quarter, from January to March, the company’s net profit was INR 243.6 million rupees. While in the previous year, the net income was INR 125.2 crore.
Founded in 1901, Castrol India enjoys a 20% market share in the Indian lubricants industry. Castrol India is the second largest manufacturer of automotive and industrial lubricants in the country.
How did Castrol India increase its profits?
While talking about the growth of the company, the Managing Director Sandeep sangwan He said that the best figures that can be seen in the quarterly results are mainly due to the ‘focused investment activities, actions and interventions carried out by the company during the second half of 2020’.
The company invested in various departments such as branding, corrective pricing, introducing new products, increasing marketing, and spending more on advertisements that were beneficial in building brand image.
An increase in the sale of SUVs and tractors during the first quarter of 2021 generated considerable demand for oil and lubricants that directly contributed to the increase in the company’s profits.
Sangwan attributed the growth of the company to the implementation of a profitable program and judicious management of working capital.
However, whether the company will manage to maintain earnings growth in the coming months can only be speculated considering the second wave of COVID19 spreading in the country.