Earnings Review
Astral Oct-Dec growth muted due to weak demand in plumbing
This story was originally published at 19:46 IST on 30 January 2025
Register to read our real-time news.Informist, Thursday, Jan. 30, 2025
By Anshul Choudhary and Alina Geogy
Please click here to read all liners published on this story
--Astral Oct-Dec consol net profit INR 1.14 bln
--Analysts saw Astral Oct-Dec consol net profit INR 1.26 bln
--Astral Oct-Dec consol net profit INR 1.141 bln vs INR 1.135 bln year ago
--Astral Oct-Dec consol revenue INR 13.97 bln vs INR 13.70 bln year ago
--Astral Apr-Dec consol net profit INR 3.45 bln vs INR 3.65 bln year ago
--Astral Apr-Dec consol revenue INR 41.51 bln vs INR 40.16 bln year ago
--Astral Oct-Dec plumbing revenue INR 9.90 bln vs INR 9.98 bln year ago
--Astral Oct-Dec paints, adhesives sales INR 4.07 bln vs INR 3.72 bln yr ago
--Astral Oct-Dec consol EBITDA INR 2.31 bln vs INR 2.12 bln year ago
--Astral Oct-Dec consol EBITDA margin 16.5% vs 15.4% year ago
--Astral Oct-Dec plumbing ops EBITDA INR 1.83 bln, up 10.9% on year
--Astral Oct-Dec plumbing ops EBITDA margin 18.5% vs 16.5% year ago
--Astral Oct-Dec paints, adhesives EBITDA INR 483 mln vs INR 466 mln
--Astral Oct-Dec paints, adhesives EBITDA margin 11.9% vs 12.5% yr ago
--Astral:Co posted EBITDA growth in Oct-Dec despite weak demand in industry
MUMBAI – Astral Ltd. posted muted growth in net profit and revenue in the December quarter due to weak demand in its largest business, plumbing. Owing to this, the company missed analysts' expectations on both revenue and profit.
The company's consolidated net profit during the quarter rose marginally on year to INR 1.14 billion, below analysts' expectation of INR 1.26 billion. The company managed to report a marginal growth in profits this quarter compared to a 16% year-on-year fall in net profit during the September quarter.
The company's consolidated revenue was up only 2% on year at INR 13.97 billion. This was a better performance than the September quarter, when it posted only a 0.5% rise in sales. However, the December quarter's revenue was below analysts' expectation of INR 14.94 billion.
Its sales were majorly affected due to weakness in the plumbing business, which houses verticals such as pipes, fittings, water tanks, and bathware. Consolidated sales of its plumbing business fell nearly 1% on year to INR 9.90 billion. Paints and adhesives, which is a smaller segment, performed much better but was not enough to offset the negative impact of the plumbing business. Consolidated sales from its paints and adhesives business rose 9% on year to INR 4.07 billion.
Astral's consolidated earnings before interest, taxes, depreciation, and amortisation in the December quarter rose 9% to INR 2.31 billion from INR 2.12 billion a year ago. Astral posted growth in EBITDA for the December quarter despite weakness in overall demand in the industry. Its consolidated EBITDA margin in the quarter rose to 16.5% from 15.4% a year ago.
The plumbing business' EBITDA rose 11% on year to INR 1.83 billion in the December quarter. The EBITDA margin of the segment expanded to 18.5% from 16.5% a year ago. The EBITDA of the company's paints and adhesives business rose to INR 483 million from INR 466 million a year ago. However, the EBITDA margin of the business contracted to 11.9% from 12.5% a year ago.
Total expenses of the company in the December quarter rose 2.6% on year to INR 12.55 billion. The cost of materials consumed, which accounted for the largest chunk of expenses, rose nearly 5% on year to INR 8.61 billion. The company's tax expenses for the quarter rose 2.5% on year to INR 416 million.
For the nine months ended December, Astral's consolidated net profit fell 5.5% on year to INR 3.45 billion from INR 3.65 billion a year ago. The company's consolidated revenue for Apr-Dec rose to INR 41.51 billion from INR 40.16 billion a year ago. Shares of Astral closed 0.5% lower at INR 1,467.75 on the National Stock Exchange Thursday. End
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
