*CASTROL: TP 576* by Phillip Capital.       

  Q4CY16 - PAT of Rs.1.56bn, up 11% yoy . EBITDA of Rs.2.2bn, up 3-4% yoy.

Volumes grew at 2% yoy to ~46.8mn.ltr, slightly bettering our revised est of 1% gr. Qoq volumes + 2%. Management cited challenging conditions owing to demonetisation, yet both automotive & industrial performed resiliently. Personal mobility and power brands grew at double digit.

Net realisation rose slightly by 1% qoq to Rs.167.2/ltr while GM was up 2% qoq to Rs.88.8/ltr. EBITDA/ltr was up 1% qoq to Rs.46.9, largely inline with opex rising based on seasonal trend.

Product launch continued with 2 eco friendly/clean lubes in automotive & a high performance cutting oil.

Final dividend of Rs.4.5 and sp divd of Rs.2 declared. With int divd of Rs.4.5, total dividend is Rs.11/sh implying *80%+ payout and 3% yield.*RD 3 Mar.
Buy