Astral FY24 Annual Earnings Summary
4 quarters covered · ₹5,641 Cr revenue · ₹545 Cr PAT · 4.3% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
Continued downward pressure on PVC/CPVC prices could lead to further inventory losses and margin compression.
Q1 FY24 · mediumSharp decline in PVC and CPVC prices led to lower revenue growth despite strong volumes; further volatility could delay margin recovery.
Q1 FY24 · mediumSAP implementation and KYC compliance caused a loss of INR 15-20 crore in paint sales; recovery may take longer than expected.
Q2 FY24 · mediumPVC prices dropped sharply by ₹11/kg in early October, leading to potential inventory losses and channel destocking in Q3.
Q2 FY24 · mediumPaint revenue declined 6% YoY despite sequential improvement; full recovery depends on successful SAP stabilization and team integration.
Q3 FY24 · mediumUK adhesives posted negative EBITDA due to silicone price drops and forex; recovery to 7-8% in Q4 is uncertain.
Q3 FY24 · mediumAstral brand paint launch in Q1 FY25 may face higher marketing costs and competitive intensity, impacting margins.
Q3 FY24 · mediumRed Sea tensions and Middle East conflicts could disrupt raw material supply and increase costs.
Q4 FY24 · mediumSharp polymer price increases (10% in Q1) could compress margins if not passed through, though management sees it as positive for organized players.
Q4 FY24 · mediumPaints and Bathware are still in early stages; achieving revenue and margin targets depends on successful brand building and distribution ramp-up.
Q4 FY24 · mediumUK adhesive EBITDA halved to INR 19 crore due to inventory losses; management expects 10% margin but recovery is uncertain.
Q4 FY24 · mediumEntry of a major cement player and price cuts by incumbents could pressure Astral's paint margins and market share.
What changed through the year
Q1 FY24 · Adhesive volume growth 15-20% for FY24
Management expects adhesive business to grow 15-20% in volume terms for the full year, with EBITDA margin above 15%.
Q1 FY24 · Pipe EBITDA per kg of INR 35-40 for FY24
CFO guided that pipe EBITDA per kg should be in the range of INR 35-40 for the year, excluding inventory and bathware losses.
Q1 FY24 · CapEx of INR 350 crore in FY24 and INR 250 crore in FY25
Capital expenditure for capacity expansion is expected to be around INR 350 crore in FY24 and INR 250 crore in FY25.
Q1 FY24 · Paint business to launch Astral Synergy brand from Q3
The demerged paint entity will operate under the Astral Synergy brand, with full operations expected from Q3 FY24.
Q2 FY24 · FY24 volume growth guidance raised to >20%
Management increased full-year volume growth guidance from 15% to over 20% for the pipes business, driven by strong H1 performance and demand outlook.
Q2 FY24 · Bathware breakeven at ₹10-11 Cr monthly run rate
Bathware segment expected to reach breakeven within the next two quarters as monthly sales cross ₹10 crore.
Q2 FY24 · Adhesive business 15-20% annual growth
Management reiterated long-term guidance of 15-20% annual growth for the adhesive segment, with potential upside from Dahej ramp-up.
Q2 FY24 · FY25 CapEx guidance of ₹250-300 Cr
Capital expenditure for FY25 expected to be ₹250-300 crore, lower than FY24 due to land acquisitions already completed.
Q3 FY24 · Plumbing volume growth of 20%+ for FY24
Management revised guidance to 20%+ volume growth for the full year; 9M already at 24%.
Q3 FY24 · Plumbing EBITDA margin of 16-17% for FY24
Guidance maintained; 9M margin at 17%+ and Q4 expected to be robust, potentially exceeding guidance.
Q3 FY24 · Adhesives India EBITDA margin of 14-15% for FY24
9M margin at 16%, already surpassing guidance; full year expected to be at or above the range.
Q3 FY24 · CapEx of INR 250-300 crore for FY25
Primarily for pipe capacity expansion; other divisions' CapEx largely completed.
Q4 FY24 · Piping volume growth 15-20% in FY25
Management guides 15-20% volume growth for pipes, with potential upward revision after H1 based on polymer price and demand trends.
Q4 FY24 · Paints revenue target INR 300+ crore in FY25
Paints business targets INR 300+ crore revenue in FY25 with EBITDA margin of 14-15%, leveraging Astral brand and distribution.
Q4 FY24 · Bathware revenue INR 125-150 crore and breakeven in FY25
Bathware business aims to achieve revenue of INR 125-150 crore and turn EBITDA positive in FY25.
Q4 FY24 · CapEx of ~INR 300 crore in FY25 for pipe expansion
Planned CapEx of INR 250 crore for pipes (Hyderabad and Kanpur plants) and INR 50 crore for other businesses, with potential increase if demand is robust.