Earnings Review
Flat top line drags Astral Jul-Sept consol net down 16%
This story was originally published at 19:55 IST on 7 November 2024
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--Astral Jul-Sept consol net profit INR 1.1 bln
--Analysts saw Astral Jul-Sept consol net profit INR 1.33 bln
--Astral Jul-Sept consol net profit INR 1.10 bln vs INR 1.31 bln
--Astral Jul-Sept consol revenue INR 13.70 bln vs INR 13.63 bln
--Astral to pay INR 1.50 per share interim dividend
--Astral Apr-Sept consol net profit INR 2.30 bln vs INR 2.51 bln
--Astral Apr-Sept consol revenue INR 27.54 bln vs INR 26.46 bln
--Astral Jul-Sept plumbing revenue INR 9.66 bln vs INR 9.80 bln year ago
--Astral Jul-Sept paints, adhesives revenue INR 4.04 bln vs INR 3.83 bln
--Astral Jul-Sept consol EBITDA INR 2.19 bln vs INR 2.34 bln year ago
--Astral Jul-Sept consol EBITDA margin 16.0% vs 17.1% year ago
--Astral Jul-Sept paints, adhesives EBITDA INR 415 mln vs INR 567 mln yr ago
--Astral Jul-Sept plumbing ops EBITDA INR 1.77 bln, unchanged on year
--Astral: Demand was low in Jul-Sept due to heavy monsoon, low govt spending
--Astral Jul-Sept plumbing sales 50,754 tn vs 52,079 tn year ago
By Ayushman Mishra
MUMBAI – For the September quarter, pipe and adhesives maker Astral Ltd. reported its lowest on-year growth in consolidated net profit in seven quarters and also missed the Street's estimates. It reported a consolidated net profit of INR 1.1 billion in the latest quarter, down 16.16% on year and 8.64% sequentially. Analysts had expected the company to report a consolidated net profit of INR 1.33 billion.
The consolidated top line of the company for the September quarter was INR 13.7 billion, up 0.54% on the year, the lowest on-year growth in 17 quarters. Analysts had forecast the Jul-Sept consolidated revenue at INR 14.77 billion. The consolidated net profit of the company for Apr-Sept was INR 2.30 billion, down 8.2% on year, and consolidated top line was INR 27.54 billion, up 4.1% on year.
The other expenses of the company in Jul-Sept were INR 1.9 billion, down 5.2% on year and down 11.7% on quarter. The cost of materials consumed for the quarter was INR 8 billion compared to INR 8.5 billion in the year-ago period. The employee benefits expenses in the September quarter were INR 1.3 billion, up 21.8% on year.
The plumbing segment of the company reported a consolidated revenue of INR 9.66 billion compared to INR 9.80 billion in the same quarter the previous year. The paints and adhesive segment reported a consolidated revenue of INR 4.04 billion, up from INR 3.83 billion in the year-ago quarter. The company said it will pay an interim dividend of INR 1.50 per share.
The consolidated earnings before interest, taxes, depreciation, and amortisation for the quarter was INR 2.19 billion, down 6.3% from a year ago. The consolidated EBITDA margin was 16%, down from 17.1% in the year-ago quarter.
The consolidated EBITDA of the paints and adhesives segment in Jul-Sept was INR 415 million, down 26.8% on year. The plumbing business reported a consolidated EBITDA of INR 1.77 billion, almost unchanged from the year-ago quarter.
The sales of the plumbing business, which includes pipes, water tanks, and bathware, were 50,754 tonnes, down from 52,079 tonnes in the year-ago quarter. The bathware segment reported revenue of INR 289 million, up 63.2% on year.
The demand was low for all segments in the September quarter due to heavy monsoon and low government spending in the sector, the company said. The raw material prices of polyvinyl chloride were highly volatile during the quarter, which led to huge destocking by distributors and dealers, the company said in a press release. The company is going to launch its own polytetra methylene terephthalate plastic tap products with 150 stock keeping units. The company said it has already completed test runs of the products in the September quarter and the initial response was very encouraging.
Astral started commercial production at the Hyderabad plant in September, which will improve the volumes in the southern market in Oct-Mar, the company said. On Thursday, shares of the company ended at INR 1,790.35 on the National Stock Exchange, down almost 1% from the previous close. End
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