Castrol India Dividend Story : Company Has Been Paying Dividends Twice a Year for 20 Years

Castrol India Share: A Consistent Dividend Payer with Strong Fundamentals

Castrol India is one of the leading manufacturers of automotive and industrial lubricants in the Indian market. The company has a strong brand presence and a wide distribution network across the country. Castrol India has been rewarding its shareholders with consistent dividends for the past 20 years. In this blog post, we will look at the dividend history, financial performance, and growth prospects of Castrol India share.

Dividend History of Castrol India Share

Castrol India has been paying dividends to its investors twice a year continuously for 20 years. The company has maintained or increased its dividend per share every year since 2003. The table below shows the dividend history of Castrol India share from 2003 to 2023.

Year	Dividend per share (Rs.)
2023	7.50
2022	6.00
2021	5.50
2020	5.50
2019	5.25
2018	4.75
2017	9.00
2016	9.50
2015	8.00
2014	7.00
2013	7.00
2012	15.00
2011	15.00
2010	22.00
2009	19.00
2008	15.50
2007	9.50
2006	8.25
2005	8.25
2004	8.25
2003	16.50

As you can see, Castrol India has been paying a steady and increasing dividend to its shareholders for the last two decades. The company has also declared a special dividend of Rs 2 per share in March 2020 and Rs 3 per share in March 2021, in addition to the regular dividends. The total dividend payout ratio of the company has been around 60% of its net profit in the last five years.

The dividend yield of Castrol India share is currently 4.54%, which is higher than the average dividend yield of the lubricant industry, which is 3.06%. The dividend yield is calculated by dividing the annual dividend per share by the current share price.

Financial Performance of Castrol India Share

Castrol India has been delivering a robust financial performance over the years, despite the challenges posed by the COVID-19 pandemic and the slowdown in the automotive sector. The company has reported a compound annual growth rate (CAGR) of 7% in its revenue and 14% in its net profit in the last five years. The company has also improved its operating margin from 23% in FY18 to 28% in FY21.

The company has posted a strong growth in its Q2 FY22 results, with a 24% increase in revenue and a 35% increase in net profit compared to Q2 FY21. The company has attributed this growth to the recovery in demand, higher volumes, better product mix, and cost optimization measures.

Castrol India is also a debt-free company, with a zero debt-to-equity ratio as of June 2021. The company has a healthy balance sheet, with a return on equity (ROE) of 42% and a return on capital employed (ROCE) of 66% as of FY21. These ratios indicate that the company is efficiently using its capital to generate profits.

Growth Prospects of Castrol India Share

Castrol India has a positive outlook for its future growth, as it aims to leverage its strong brand equity, innovative product portfolio, and diversified customer base to capture the opportunities in the lubricant market. The company has identified four key growth drivers for its business:

• Personal Mobility: The company expects to benefit from the increasing demand for personal mobility solutions, such as passenger cars, two-wheelers, and electric vehicles, as well as from the rising disposable income and urbanization trends in India.
• Commercial Transport: The company plans to tap into the growing demand for commercial transport solutions, such as trucks, buses, and tractors, as well as from the government’s initiatives to boost the infrastructure and rural development sectors in India.
• Industrial: The company aims to expand its presence in the industrial lubricant segment, which caters to various sectors such as power, mining, cement, steel, and manufacturing. The company also intends to offer customized solutions and value-added services to its industrial customers.
• New Energy: The company is exploring new opportunities in the emerging segments of renewable energy, such as wind, solar, and biofuels, as well as in the alternative fuels, such as compressed natural gas (CNG), liquefied petroleum gas (LPG), and hydrogen. The company is also investing in research and development to develop new products and technologies for these segments.

Castrol India has also been focusing on enhancing its digital capabilities, customer engagement, and sustainability initiatives to create a competitive edge in the market. The company has launched several digital platforms, such as Castrol Fast Scan, Castrol Activ Connect, and Castrol Truck Aasana, to provide convenience, loyalty, and wellness benefits to its customers. The company has also been working on reducing its carbon footprint, increasing its use of recycled materials, and supporting various social and environmental causes.

Conclusion

Castrol India share is a consistent dividend payer with strong fundamentals and growth prospects. The company has been delivering a steady and increasing dividend to its shareholders for the past 20 years. The company has also been posting a robust financial performance, with a high growth rate, margin improvement, and debt-free status. The company has a positive outlook for its future growth, as it plans to leverage its strong brand presence, innovative product portfolio, and diversified customer base to capture the opportunities in the lubricant market. The company has also been enhancing its digital capabilities, customer engagement, and sustainability initiatives to create a competitive edge in the market.

Castrol India share can be considered as a good stock for long-term investment, as it offers a combination of capital appreciation and dividend income. However, investors should also be aware of the risks and challenges that the company may face, such as competition from other players, volatility in raw material prices, regulatory changes, and technological disruptions. Investors should also do their own research and analysis before investing in any stock.

castrol india dividend history