Astral Limited — Q1 FY25
Astral reported a 16% volume growth in Q1 FY25, in line with its 15% guidance, despite significant PVC price volatility.
neutral
medium
✓ 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.
63%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Can 15% volume growth guidance be revised upward? How was July demand?
Asked by Shravan Shah, Dolat Capital
Management gave range but did not commit to upward revision; July demand described qualitatively.
no specific revision trigger givenqualitative on July
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Question
Sir, this 15% volume growth that we are seeing, I think, previously we are looking at 15%-20% kind of a range. So, given the fluctuations in the PVC prices, so, is it possible that maybe the Q2 onwards, we can, there is a chance to revise this upwards or, 15% would be kind of a max that right now we are looking at? And also now particularly July, how was the kind of a demand?
Hiranand Savlani, CFO
So like you see the history that whenever the polymer price goes up, the demand picks up. It is not a genuine demand, but it's a stocking demand. ... we have given the guidance 15% plus. 15% can be anywhere 16, 17, 18, 19, 20, anything between 20% number. ... As far as July is concerned, yes, you are right, absolutely. July is slow because the polymers are coming down.
Answered
High priority
Is there possibility of inventory losses in Q2?
Asked by Shravan Shah, Dolat Capital
Directly answered with current view and conditional scenario.
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Question
And, secondly, in terms of Q2, is there a possibility that we can see the inventory losses?
Hiranand Savlani, CFO
At this stage, we don't see any inventory losses. If further polymer goes down, yes, there can be a probability of loss, but at this stage, when I'm talking today, it doesn't look that the inventory losses will be there.
Partial answer
Medium priority
What was bathware Q1 revenue and EBITDA loss? CapEx guidance?
Asked by Shravan Shah, Dolat Capital
Revenue and CapEx given, but EBITDA loss avoided due to segment reclassification.
EBITDA loss not quantifiedclubbed with plumbing
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Question
Couple of data points, Bathware Q1 revenue and EBITDA loss was how much? CapEx, how much we have done, and for full year, we were looking at INR 300, so that remains intact?
Hiranand Savlani, CFO
We have done close to about INR 26 crore of revenue, which is YoY basis, if you see, it is a 90% jump... CapEx guidance will be somewhere around INR 350 crore on a full year.
Partial answer
High priority
What is paint revenue guidance for FY25 and margin outlook?
Asked by Shravan Shah, Dolat Capital
Margin guidance lowered to double-digit but revenue not provided.
revenue guidance not givenmargin lowered but no exact number
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Question
And lastly, sir, on the paint for full year, how much revenue we are looking at? And in terms of the margin, I think previously we said 14%-15% kind of a margin. So, that for FY25 remains the same?
Hiranand Savlani, CFO
This year, margin will be little lower, as I communicated in the Q1 also, because of launch and all employee costs. ... we will be maintaining double-digit kind of margin. ... Full year, I am telling you minimum 10% kind of margin we are targeting.
Evasive
Medium priority
How are paint launches progressing and what revenue in 2-3 years?
Asked by Sneha Talreja, Nuvama
No specific revenue target for paints; deferred to next quarter.
no revenue numbersdeferred quantification
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Question
Given that we've just launched it in, Gujarat and Karnataka, how are we looking at further launches, and what kind of revenues can we see maybe from two to three years perspective in this particular, division?
Hiranand Savlani, CFO
We have launched in Gujarat. ... We'll quantify some numbers on this from next, next quarter for Astral Paints to make it more clear and clarity. ... we are targeting a growth of at least 15%-20%, 15% minimum from the level which we were last year.
Answered
High priority
What is CPVC pricing outlook and inventory levels?
Asked by Sneha Talreja, Nuvama
Provided clear view on pricing and inventory levels.
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Question
How is that panning out? Is it still on the anticipated mode? Are we passing anything on? And moreover, how is the inventory levels at the dealer distributor level?
Hiranand Savlani, CFO
CPVC price is stable right now, but there are high probability that because of this anti-dumping revised rule, there are high probability that the prices should go up. ... very light inventory in CPVC in the market.
Answered
High priority
What is outlook for adhesives India growth and margins?
Asked by Rahul Agarwal, Ikigai Asset Management
Provided specific growth and margin outlook for India adhesives.
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Question
Wanted to know your overall outlook for the balance nine months. In U.K., you already said what you expect, but India, what will you expect in terms of growth and margins?
Hiranand Savlani, CFO
India, we are expecting to maintain the similar margin for the balance nine months, and at the same time, we are expecting 15%-20% kind of growth.
Partial answer
Medium priority
What is the run rate for staff cost and other expenses?
Asked by Rahul Agarwal, Ikigai Asset Management
Explained reasons but did not provide specific run rate or absolute guidance.
no absolute numberqualitative explanation
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Question
If you could guide us on the run rate ahead, that would really help. Like, how should we build the growth? Q1, I understand it's up again, 25% year-over-year, if I add up the staff cost and other expenditure. But some outlook on how should we look at staff cost and other expenses on a run rate basis going forward?
Hiranand Savlani, CFO
So see, staff cost and all has gone up mainly because top line growth was affected because of the lower polymer price. ... on a full year basis, more or less, it should be in the same range.
Partial answer
Medium priority
What is the status of O-PVC technology and capacity plans?
Asked by Pujan Shah, Molecule Ventures
Provided capacity and timeline but declined to name technology partner.
technical partner not disclosed
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Question
Could you just please give a glance how we have been like, is it this first machine is being imported or we have been indigenously developing with any kind of association with any company? How we looking into it and how forward we have been planning to grow this segment?
Hiranand Savlani, CFO
So O-PVC, yes, we have guided that this will be our indigenous technology. ... To start with October, November and December, 3 machines we have lined up. ... the capacity will be close to about 78,000 metric ton.
Answered
High priority
Why is volume-value gap higher than peers and will one-off expenses subside?
Asked by Nitin Jain, Fairview
Explained gap reason and confirmed one-off expenses will subside.
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Question
If you look at the volume value gap, which you indicated, it's around 8% for Astral. So, it's a little higher than, you know, what our peers have reported. So if you can elaborate on that and how we see this gap closing, going forward. And also, like, in the last two, three quarters, it's just an observation, like, there has been, you know, recurrence of one-off expenses.
Hiranand Savlani, CFO
Q1, Astral is normally of a CPVC-driven more company, but the Q1 is always loaded with the more of PVC product. ... that was the reason that the gap was wide. ... It will come down only. It will not go up.
Declined
Medium priority
What is volume growth split between plumbing and infra? Urban vs tier?
Asked by Sonali Salgaonkar, Jefferies
Explicitly declined to provide any split.
refused to share
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Question
Could we get some kind of qualitative or quantitative color as to how much our volume growth has come from plumbing and how much from infra this quarter? And secondly, also, how much from urban versus tier one, tier two, et cetera?
Hiranand Savlani, CFO
I think we don't share, Sonali, these kind of number in the calls, neither in the personal meetings also. These are the confidential things we don't discuss in the market.
Answered
High priority
Will 40.5% gross margin be maintained? Any one-off?
Asked by Praveen Sahay, Prabhudas Lilladher
Addressed margin outlook and one-off nature directly.
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Question
So gross margin of 40.5%, which you have delivered for a quarter. So how you see this number the way forward? Would you be able to maintain this, or is there any one-off there in this quarter, or you will see this to improve in the down the next three quarters?
Hiranand Savlani, CFO
So as far as improvement is concerned, I don't think we are already sitting on a very high margin, so there is no point to improve further from here. Even if it is coming down 1 or 2%, it's fine to us. ... Very low, very low, very low.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Bathware Q1 revenue INR 26 crore, 90% YoY jump | ₹26 cr | ₹1,384 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.