Astral Limited — Q1 FY24
Astral delivered a strong Q1 FY24 with 31% volume growth in pipes and healthy adhesive volumes, though revenue growth was muted due to sharp polymer price declines.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
73%Questions answered2Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Volume growth in adhesives India and outside, and outlook for growth and margins.
Asked by Rahul Agarwal, InCred Capital
Management gave a range for volume growth but did not provide exact numbers for India and outside separately.
no exact volume growth givenestimated range provided
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Question
If you could highlight what were the volume growth, both in India and outside, and the outlook for the year, sir, in terms of growth and margins, please?
Hiranand Savlani, Executive Director and CFO
We are expecting 15%+ full year growth for adhesive business, 15%-20% kind of growth. We have guided that we will be delivering 15%+ EBITDA margin, we are standing by with that number.
Evasive
High priority
Debottlenecking expansion plan and capacity addition details.
Asked by Rahul Agarwal, InCred Capital
Management did not provide a specific capacity addition number, deferring to next quarter.
no specific number givendeferred to next quarter
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Question
Just on the debottlenecking side, if you could help us, what's the expansion plan?
Hiranand Savlani, Executive Director and CFO
Our team is working on that, and continuously we are working on that. Once I think, number is not preached how much we are able to, so team is working on that, but I'm sure there also we can improve the capacity... How much exact capacity will be added, I think, we will be in a position to tell you in the next quarter call.
Answered
High priority
Confirmation of 10-15 thousand tons debottlenecking capacity.
Asked by Rahul Agarwal, InCred Capital
Management confirmed the analyst's estimate directly.
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Question
On an average, 10-15 thousand tons of debottlenecking in existing plants, is that a fair number?
Hiranand Savlani, Executive Director and CFO
Yeah, yeah. You can expect that number.
Answered
Medium priority
Bathware sales run rate and quarterly sales.
Asked by Rahul Agarwal, InCred Capital
Management corrected the analyst's assumption and provided actual quarterly sales.
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Question
Bathware sales, you said INR 5.0001 crore a month, so I'm assuming INR 15 crore sales for the quarter. Is that fair?
Hiranand Savlani, Executive Director and CFO
No, last quarter it was around 13.9 or something. Okay, because April was low, May, June was very good, so July is again a very good. Last three months, I have considered May, June and July, all the three months were INR 5 crore+.
Answered
Medium priority
Paint sales and EBITDA margin.
Asked by Rahul Agarwal, InCred Capital
Management confirmed the revenue and EBITDA margin numbers.
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Question
Paints and paint sales and EBITDA, you said, 25% big growth, so my number is about INR 40 crore of top line and seventeen-
Hiranand Savlani, Executive Director and CFO
Yes, INR 41 crore. Paint is INR 41 crore. 17% EBITDA. EBITDA was good because the GP improvement was substantial in that business also.
Evasive
Low priority
Details about new person who joined for paints.
Asked by Rahul Agarwal, InCred Capital
Management refused to share the person's name or details, deferring to a later time.
deferred to laterno name given
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Question
The new person who joined for paints, could you elaborate a bit? Like, could you share some details? Who's the person?
Sandeep Engineer, Chairman and Managing Director
We will, we'll share at the appropriate time, but very rich experience person, having 30+ years of experience in paint industry. We are having some personals joining there also, but we'll at the right time, we'll communicate on that.
Answered
High priority
Steady state EBITDA per ton for the year.
Asked by Dhananjai Bagrodia, ASK
Management provided a specific EBITDA per kg range.
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Question
What number do we think or OP per ton do we think will be steady state for the year? Because there has been some variation. Now, assuming we are steady state in terms of inventory gain and losses, what would be that for the year?
Hiranand Savlani, Executive Director and CFO
I think I don't track EBIT, but EBITDA basis, we are considering that its number should be in the range of INR 35-40 minimum.
Answered
Medium priority
Bathware business loss and segment allocation.
Asked by Dhananjai Bagrodia, ASK
Management clearly stated the segment and provided exact loss figures.
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Question
These are the losses of the bathware business is taken in which segment? ...how much was the loss for the year, quarter?
Hiranand Savlani, Executive Director and CFO
Pipe. Last year was INR 16.5 crore. This first quarter is INR 3.4 crore.
Answered
High priority
Volume growth drivers and whether it's largely from geographical expansion.
Asked by Praveen Sahay, Prabhudas Lilladher
Management provided a comprehensive breakdown of growth drivers.
Read the exchange
Question
Can you bit elaborate on that from where these growths are coming in? ...It's fair to assume that's largely because of geographical expansion?
Hiranand Savlani, Executive Director and CFO
The growth is coming from all the different segments that you mentioned. It is coming from geographical expansion... Growth is coming from retail side also. Growth is coming from project side also. ...It is a multifaceted growth that is coming.
Answered
High priority
CPVC pricing outlook and current trends.
Asked by Praveen Sahay, Prabhudas Lilladher
Management gave a detailed outlook on CPVC pricing and reasons for stability.
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Question
Can you give some color on that? Because, we had, seen some softness in that. How, how you are seeing right now in the month of June, July, how is that?
Hiranand Savlani, Executive Director and CFO
CPVC prices have definitely softened, but CPVC prices will not soften like PVC prices have softened. ...India will continue to be, continue to remain import dependent for the coming two years more. ...It is very hard for CPVC to soften beyond that point.
Evasive
High priority
Whether 25% volume CAGR is implied by capacity expansion.
Asked by Ritesh Shah, Investec India
Management avoided giving a specific growth target, citing uncertainty.
no commitment givendeferred to future
Read the exchange
Question
What this essentially implies is, are we looking at around 25% volume CAGR for next three years? Is it, is it something that we are looking at internally to do?
Hiranand Savlani, Executive Director and CFO
I don't want to unnecessarily give the commitment at this stage... 25% is a very huge number... I don't want to unnecessarily sow the grapevine in the market that we will be able to do 25% CAGR volume growth in next three years.
Partial answer
High priority
EBITDA per kg guidance and why not higher than INR 35-40.
Asked by Ritesh Shah, Investec India
Management explained the conservatism but did not provide a higher target despite acknowledging potential upside.
no specific higher guidance givencited conservatism
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Question
Since you indicated that a minimum of INR 35-40 per kg, we are looking at for FY 2024, aren't we far more conservative? ...Why this number of 35-40, why can't this number be higher?
Hiranand Savlani, Executive Director and CFO
Ritesh, it is difficult to predict the ratio in which direction. ...We have to be very, very conservative, because we don't want to unnecessarily misguide any of the investor community that this is the way we are going to.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Paint revenue INR 41 crore | ₹41 cr | ₹1,283 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.