Astral Limited — Q4 FY24
Astral reported a strong year with piping volume growth of ~23% and adhesive India revenue of INR 960 crore at 15.7% EBITDA margin.
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.
55%Questions answered4Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Paint industry entry strategy amid disruption by large player.
Asked by Speaker 10
Gave a revenue range but avoided specifics on market share or disruption impact.
no specific timelinevague revenue target
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Question
Do you think the next 12, 15, 18 months will be a time for you to enter this market in a big way, capture pockets of the market, and this could be the game changer for Astral Paints?
Sandeep Engineer, Chairman and Managing Director
We are not going to push, put money behind it, be aggressive without any reason and do any extraordinary expenses. We will grow. This year, we'll reach 300-325, it's an ideal number.
Answered
Medium priority
OPVC pipe sizes and market opportunity.
Asked by Speaker 10
Provided specific size range and market focus for OPVC launch.
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Question
Could you give us some sense of the ductile iron pipes? Typically, we also hear of very large diameters. So whether it will come in all those sizes...
Sandeep Engineer, Chairman and Managing Director
First phase, we are launching up to 12 inches. After that, maybe we will go to higher diameters. Major demand is up to 12 inches, 315 mm, is the major market for this.
Answered
High priority
Adhesive revenue and EBITDA split between India and international.
Asked by Girish Achhipalia, Morgan Stanley
Provided exact revenue and EBITDA figures for both India and UK adhesive operations.
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Question
Wanted to understand the adhesive portfolio for FY 2024. If you split the performance for international and India, if you can help us with the revenue and EBITDA margin.
Sandeep Engineer, Chairman and Managing Director
The revenue from the last year from India operation was INR 960 crore, and the EBITDA was INR 151 crore, so close to about 15.7% EBITDA... The UK did around INR 355 crore rupees last year. EBITDA was just INR 19 crore.
Answered
Medium priority
Normalized EBITDA margin for UK business.
Asked by Girish Achhipalia, Morgan Stanley
Gave a specific EBITDA margin expectation for UK business.
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Question
So what is the normalized EBITDA in U.K. business that we should expect going forward?
Sandeep Engineer, Chairman and Managing Director
So we are expecting close to about double-digit, close to about 10% EBITDA next year.
Answered
High priority
CapEx breakdown by business segment.
Asked by Girish Achhipalia, Morgan Stanley
Provided a clear split of CapEx between pipe and other businesses.
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Question
Just wanted to understand your CapEx program for this year and next year, and if you can break it down into various business segments...
Sandeep Engineer, Chairman and Managing Director
So probably about, you can say major chunk, INR 250 crore kind of will go to the pipe and INR 50 crore will go to the other businesses.
Evasive
Medium priority
OPVC opportunity size and pricing.
Asked by Girish Achhipalia, Morgan Stanley
Declined to provide any quantitative estimates for OPVC opportunity.
too soon to commentno numbers given
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Question
If you could quantify any opportunity size, the pricing, or, I'm sure the margins would be accretive.
Sandeep Engineer, Chairman and Managing Director
On the realization side, I think, it is too soon to comment that what the realizations of this product line would be. But since it is a technical product... it will be selling at a premium price.
Evasive
Medium priority
Strategy for piped gas business opportunity.
Asked by Het Choksey, Deven Choksey
Acknowledged opportunity but gave no specific strategy or timeline.
too soon to commitno concrete plans
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Question
We see a similar theme of piped gas in the next 10 years. So could you talk a little bit about how would you be wanting to capture this theme of piped gas business...
Sandeep Engineer, Chairman and Managing Director
Gas side, there will be a move to usage of polymer pipes. It is still in a very nascent phase, and we are actively keeping a watch on the developments on this side. It's too soon to commit to any sort of a CapEx.
Partial answer
Low priority
Aluminum composite pipe market evolution.
Asked by Het Choksey, Deven Choksey
Described product plans but avoided quantifying market opportunity.
no market size or revenue targets
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Question
Could you just throw a little bit light on that space as to how would you want to capture that theme? And because that product is a very premium product...
Sandeep Engineer, Chairman and Managing Director
We already have the CPVC aluminum composite pipe for hot water supply, and we are also going to launch the PEX, aluminum PEX composite pipes... But again, it is a very premium product.
Evasive
Medium priority
Separate listed company for adhesives and sealants.
Asked by Het Choksey, Deven Choksey
Avoided answering directly about a separate listing, instead highlighted past performance.
did not address listing questionreframed to growth story
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Question
Do you think that creating a separately listed company with a very dedicated, separate distribution network... can support your expansion?
Sandeep Engineer, Chairman and Managing Director
I'm sure you have not seen the number of our this business. the last 10 years, our growth is 17% CAGR... So we have done a good job. Yes, definitely we can do still better...
Answered
High priority
Industry growth guidance volume vs value and market share aspiration.
Asked by Ritesh Shah, Investec
Clarified volume growth and gave company volume guidance range.
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Question
I think on one of the slides, we have indicated 10%-11% industry growth. It was not specified whether it was volume or value. If you could specify that. In that context, do we have any aspiration on maintaining market share or increasing it?
Saumya Engineer, Head of Adhesives and Paints
Industry is supposed to grow at between 10%-12% volume, and our indication to the market is between 15%-20% volume for this year.
Evasive
High priority
INR 1,500 crore new business target status.
Asked by Ritesh Shah, Investec
Did not provide current progress toward the target, only said on track.
no current number givendeferred to next presentation
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Question
Two years back, we had given a number of INR 1,500 crore of top line within four to five years. If you could spell where we are on the journey, and are we still retaining that target?
Hiranand Savlani, CFO
We are very well on track. We have not shared that number, but next time in the presentation, we will give the net number also... we are going to achieve in next committed time.
Partial answer
Medium priority
Adhesive segment growth outlook for next two years.
Asked by Rahul Agrawal, Ikigai Asset
Qualitative assurance of higher growth but no numeric guidance.
no specific growth rate given
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Question
Just wanted to know, like a bit shorter term, next two years, would adhesive see a higher than normal growth...
Sandeep Engineer, Chairman and Managing Director
Obviously, it will be growing at a much higher pace in volumes. Much, much higher pace. And, Dahej plant is having a good capacity, so it will be helping us to grow much faster.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India adhesive revenue INR 960 crore, EBITDA INR 151 crore | ₹960 cr | ₹1,625 cr | Understated vs filing |
| UK adhesive revenue INR 355 crore, EBITDA INR 19 crore | ₹355 cr | ₹1,625 cr | Understated vs filing |
| Bathware revenue INR 60-63 crore, EBITDA loss INR 17-18 crore | ₹61.5 cr | ₹1,625 cr | Understated vs filing |
| Paint revenue INR 185 crore, EBITDA margin 14.5%-15% | ₹185 cr | ₹1,625 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.