Castrol India Ltd’s shares haven’t recovered from the decline which came immediately after the lubricant maker announced March-quarter results last week. Crude oil prices are on a firm footing and are expected to remain strong in the next few months. Castrol India’s raw materials include base oil and additives, which are derivatives of crude oil. Naturally then, increasing crude oil prices translate to rising costs for the company. Edelweiss has pruned CY18/CY19 estimated earnings per share by 3%/4%, citing rising crude oil prices that are likely to impact margins amid Castrol India’s focus on volume growth.

Source: Mint May 10, 2018 04:30 UTC