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Informist, Monday, Aug. 11, 2025

NEW DELHI – Astral Ltd. Monday posted lower-than-expected earnings for the June quarter owing to the weak on-year performance of the plumbing segment, which accounts for around three-fourths of the company's top line. Further, Astral's total expenses rose marginally on year during Apr-Jun while revenue declined for the first time in 20 quarters. Astral's bottom-line performance was the weakest in 11 quarters on a year-on-year basis.

The pipes and adhesives manufacturer reported a consolidated net profit of INR 811.0 million for the June quarter, down nearly 33% on year and almost 55% sequentially. Analysts had expected the company to report a bottom line of INR 1.27 billion. Its consolidated revenue from operations declined at a slower pace of 2% on year to INR 13.61 billion, but this figure was also lower than the INR 14.81 billion expected by analysts. Sequentially, the top line was down 19%.

The consolidated revenue from Astral's plumbing segment fell almost 6% on year to INR 9.54 billion in the June quarter while that from the paints and adhesives segment rose 10% to INR 4.07 billion. Astral's plumbing business houses verticals such as pipes, fittings, water tanks, and bathware. The company's other income for Apr-Jun fell almost 24% on year to INR 91.0 million, taking its total income for the quarter to INR 13.70 billion.

The company's total expenses for Apr-Jun stood at INR 12.61 billion, up over 2% on year. This rise was led by an uptick of over 29% on year in Astral's depreciation and amortisation expense for the quarter to INR 719.0 million. Its employee benefit expense grew 12% on year to INR 1.42 billion while the cost of materials consumed increased over 2% on year to INR 8.73 billion. However, the company's other expenses declined almost 5% on year to INR 2.09 billion.

Astral's tax outgo for the June quarter fell almost 30% on year to INR 306.0 million.

"During the quarter, polymer prices were volatile," the company said, adding that the average polyvinyl chloride prices in Apr-Jun fell nearly 14% on year, resulting in inventory losses and an impact on realisations.

Astral's consolidated earnings before interest, tax, depreciation, and amortisation was INR 1.94 billion in Apr-Jun, lower than INR 2.26 billion a year ago. The EBITDA margin for the quarter contracted 210 basis points on year to 14.3%.

The consolidated EBITDA of the plumbing segment fell almost 14% on year to INR 1.57 billion in the June quarter and the EBITDA margin contracted 150 bps to 16.4%. The consolidated EBITDA of the paints and adhesives segment fell to INR 375 million from INR 446 million a year ago and the EBITDA margin declined 280 bps to 9.2%.

Giving an update on business in the current quarter, the company said: "From July onwards, due to stability of polymer/chemicals, the market conditions are improving."

As of Jun. 30, Astral's consolidated cash, including cash equivalents, and bank balances stood at INR 4.89 billion, as per the company. Monday, shares of the company closed 0.4% higher at INR 1,381.60 on the National Stock Exchange. Astral announced its June quarter earnings after market hours.  End

Edited by Rajeev Pai

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