Astral Limited — Q2 FY25
Astral's Q2 FY25 consolidated revenue was flat at INR 1,370 crore (+0.5% YoY), with EBITDA of INR 219 crore (-6% YoY) and margin of 16% (down ~100 bps YoY).
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.
75%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Which products are applicable for BIS and how does it benefit?
Asked by Rahul Agarwal, Ikigai Asset Management
Management explained BIS applicability, government process, and benefits clearly.
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Question
Sir, first question on BIS. Just wanted to know which products are applicable here, what clarity are we awaiting here, what's really happening on the government side, and how does it benefit?
Sandeep Engineer, Chairman and Managing Director
So see, if you see, there were two pending issues with the government. First was to initiate the anti-dumping duty, which government had recently few days before they issued the circular, and now that is done. So sooner or later, you will see the price effect will be there on the market.
Partial answer
High priority
What is happening with CPVC pricing and growth?
Asked by Rahul Agarwal, Ikigai Asset Management
Management gave qualitative growth but did not provide a specific growth rate.
no specific growth number given
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Question
And lastly, on CPVC, just some understanding on what's really happening on pricing there. And if you could share not the exact number, but in terms of growth on CPVC on construction plumbing, how is that shaping up?
Hiranand Savlani, CFO and Executive Director
CPVC has continued to grow, and it is growing. And if you see, Astral has done, despite all these challenges in PVC, a good number. So obviously, the CPVC sale is continuously growing and giving us good number margins.
Answered
Medium priority
Any color on October performance?
Asked by Rahul Agarwal, Ikigai Asset Management
Management gave a clear qualitative assessment of October being flat.
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Question
Got it. Sir, any color on October? What's really happening? What happened in the last month?
Sandeep Engineer, Chairman and Managing Director
October was normal because there was no high demand in the October because of the holiday season. It was also there, and there was no clarity about the anti-dumping duty. Thirdly, monsoon extended in the month of October also, so October was not that great, I can say. It was a flat kind of thing.
Answered
Medium priority
What is the application and market size of OPVC? Will it cannibalize PVC/CPVC?
Asked by Nitin Jain, Fairview Investment
Management clearly stated OPVC does not cannibalize and explained its application.
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Question
So can you throw some light on application and market size of OPVC and whether it will at some point in time cannibalize PVC or CPVC sales?
Sandeep Engineer, Chairman and Managing Director
Firstly, let me tell you the application of OPVC has no concern on PVC business, neither CPVC business. It's a totally different application. It's a more water transportation product. To long distances, it's the replacement of ductile iron.
Answered
High priority
Why has employee cost risen 20% YoY?
Asked by Nitin Jain, Fairview Investment
Management explained multiple reasons for employee cost increase.
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Question
Also, there has been a significant rise of about close to 20% in employee costs year-over-year. So how would you explain this rise?
Sandeep Engineer, Chairman and Managing Director
We had more employees. We have taken two initiatives. One is the initiative in adhesive called New Bharat, and where we are going to the most rural parts of India, and which is actually giving us good numbers and growth and visibility, but when we talk about New Bharat, we need people.
Answered
High priority
What is hurting UK adhesive operations and corrective actions?
Asked by Nitin Jain, Fairview Investment
Management explained the issues and corrective actions with a timeline.
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Question
And my last question is, if you can provide more detail about what exactly is hurting us in the UK adhesive operations and what corrective actions we are taking and if any timeline you could provide by when we can see the results of these corrective actions.
Sandeep Engineer, Chairman and Managing Director
Yes, U.K. business has two aspects. One is the U.S. loss comes through the U.K. business. So U.K. standalone, when it works, it is not a negative one. But U.S. is a part of the U.K. business, so that also gives us some negative margin. But U.K. itself has lower margin.
Partial answer
High priority
Did CPVC price increases take place? How was PVC growth?
Asked by Sneha Talreja, Nuvama Capital
Management answered CPVC pricing but did not give PVC volume growth number.
no specific PVC volume growth number given
Read the exchange
Question
Firstly, we wanted to understand, we were hearing of a lot of price increases in the CPVC segment. Did that really take place, or is it taking place now? While I understood from your commentary that CPVC volumes were up significantly, or maybe we've seen growth in PVC, how was the growth in PVC by end of September?
Sandeep Engineer, Chairman and Managing Director
CPVC side prices are stable right now in the market, and there is not much volatility seen. Once these PVC prices rise, maybe the CPVC prices might rise by a few percentage points, but that is to be seen. As of now, the CPVC prices are stable.
Partial answer
Medium priority
Can you give sanitary and fittings segment revenue and EBITDA separately?
Asked by Sneha Talreja, Nuvama Capital
Management gave revenue growth but declined to provide EBITDA separately.
EBITDA not provided
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Question
Can I get the numbers of sanitary and fittings segment separately, both in terms of revenues and EBITDA?
Hiranand Savlani, CFO and Executive Director
EBITDA will be difficult for us to give because now earlier, the Jamnagar operation was separate, so we were able to arrive at the number. Now there, we already started manufacturing the CPVC, the fittings, brass rings all over there. So now it is clubbed, so very difficult to arrive. But sales-wise, yes, last year it was close to about 17.7%, and this year it is 28.9%. So almost 63% kind of growth is there in this quarter.
Partial answer
High priority
Are you confident of 15% volume growth for plumbing given October was flat?
Asked by Shravan Shah, Dolat Capital
Management gave a range but did not commit to 15% due to uncertainty.
no firm commitment
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Question
So just trying to understand in terms of the growth rate for remaining five months is too high. So let's say if the restocking happens, then are we confident that we can do 15% kind of a volume growth?
Hiranand Savlani, CFO and Executive Director
We don't have an exact clarity how much destocking is there in the system. If the destocking level will be high, then yes, definitely we will try for the 15%. Otherwise, any number between 10%-15% will be there.
Answered
High priority
Can margin move to 19%-20% given PVC price hike?
Asked by Shravan Shah, Dolat Capital
Management clearly explained that higher margins would be inventory gains, not sustainable.
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Question
So just trying to understand, is there a possibility given the price hike is already happening INR 3 PVC is there and maybe further, as you mentioned, INR 6, INR 7 you are looking at. So will this 18% can move to 19%-20%?
Sandeep Engineer, Chairman and Managing Director
But that will be counted into the inventory gain. That is not a permanent kind of margin for us. So we can't guide like that way because I can't forecast the gain of inventory. This is why we are giving 16%-18% because that is a normal business margin, excluding the inventory gain.
Answered
High priority
How do you balance quality, profitability, and volume growth?
Asked by Ritesh Shah, Investec
Management explained their strategy of not compromising on price/quality for volume.
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Question
Sandeepbhai, how do you balance quality, profitability, and volume growth? What we have seen over the call and over the years as well, there has been a lot of emphasis on profitability, and the company has rightfully delivered so. However, volume growth is something which has gotten a bit subdued.
Sandeep Engineer, Chairman and Managing Director
One is volume growth. Now, volume growth, I don't see this as a bad value growth. You have seen the volume growth across the channel. Reliance itself has said, 'I'm in a minus volume growth on polymer by 5%.' So if the giant is shrinking on the polymer growth, it's a very open picture for that.
Evasive
Medium priority
What cost control measures have been implemented and quantified savings?
Asked by Ritesh Shah, Investec
Management declined to provide specific cost control measures or quantified savings.
refused to give specific measures or numbers
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Question
Sir, I did ask for specific measures that you have implemented on the cost side. You indicated manpower rationalization. Would you please highlight other measures that we have implemented and if you can possibly give an absolute number of incremental cost savings that we are looking at in forthcoming quarters?
Hiranand Savlani, CFO and Executive Director
We cannot give everything. We are rationalizing and people have to trust us. We know how and where and where to do. But we cannot give you what numbers and all other costs also. We have been very categorically very open on every front. But we have not to have every front open that relates to what business.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Bathware sales grew 63% YoY to 28.9 cr | ₹28.9 cr | ₹1,370 cr | Understated vs filing |
| India adhesive margin 15.5% in Q2 | 15.5% | 15.97% | Matches filing |
| India adhesive half-year margin 15.75% | 15.75% | 15.97% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.