‘It’s no doomsday for lubricants, robust growth likely till 2040s’

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₹206.3 crore over a year earlier to ₹225.8 crore. Its volumes rose 4% from a year ago and 5% sequentially to 58 million litres in the quarter. However, despite the recent rise in its stock price, the company’s performance over the broader five-year horizon has been relatively stagnant.

“We have a solid balance sheet. We have zero debt, our return on capital employed is just short of 50%. Our return on sales is 18%, and Ebitda is at 23-25%.

We are clearly wanting to use the balance sheet to ensure the growth aspects are reflected. The market can see quite a few initiatives such as our investment in Ki mobility, expansion of workshops," Baxi added. "The result of the initiatives will take time to show.

There’s a capital framework in place, we are cash-rich, and we are thinking what is the right way to deploy that capital, through dividends, inorganic and organic expansion." “Besides, electrification is the right step, and we will play in that space. We are also fully prepared for supplying fluids needed for EVs. We have launched the Castrol On brand, which offers transmission fluid, grease and coolants.

EVs do not need engine oil, but we have the products and supply to three of the biggest players in India manufacturing electric cars. So, it’s not a doomsday scenario. Lubricants have enough growth opportunities till 2030s-40s.

The core business is still very robust," Sangwan said. “We are also now entering new spaces beyond lubricants. Castrol Auto Care, for example, is an entry into a category which is beyond lubricants.