Capitaline

Results 31-Jan-24

Analysis

Astral

Steady performance

Astral consolidated net sales increased 8.08% to Rs 1370.2 crore during Q3FY24 compared to Q3FY23. Sales of Plumbing segment rose 7.12% to Rs 998.10 crore (accounting for 72.84% of total sales). Sales of Paints and Adhesives segment has gone up 10.74% to Rs 372.10 crore (accounting for 27.16% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 12.29% to Rs 161.70 crore. PBIT of Plumbing segment rose 15.26% to Rs 128.40 crore (accounting for 79.41% of total PBIT). PBIT of Paints and Adhesives segment rose 2.15% to Rs 33.30 crore (accounting for 20.59% of total PBIT).

PBIT margin of Plumbing segment rose from 11.96% to 12.86%. PBIT margin of Paints and Adhesives segment fell from 9.70% to 8.95%. Overall PBIT margin rose from 11.36% to 11.80%.

Operating profit margin has jumped from 14.70% to 14.97%, leading to 10.03% rise in operating profit to Rs 205.10 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.37% to 60.17%. Purchase of finished goods cost fell from 1.56% to 1.22%. Employee cost increased from 6.40% to 8.35%. Other expenses rose from 11.78% to 15.25%.

PBIDT rose 14.70% to Rs 211.5 crore. Provision for interest fell 20.21% to Rs 7.5 crore.

PBDT rose 16.57% to Rs 204 crore. Provision for depreciation rose 10.11% to Rs 50.1 crore.

Profit before tax grew 18.84% to Rs 153.90 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 40.6 crore, compared to Rs 34.6 crore. Effective tax rate was 26.38% compared to 26.72%.

Net profit attributable to owners of the company increased 22.44% to Rs 113.50 crore.

In the month of January 2024, company has started commercial production of Pipe (Tank was already rolled out) at Guwahati Plant. Further During the quarter, Astral has got Green Product Certification for its CPVC Pro Pipes and Fittings and Drain Pro Pipes and Fittings for its Santej plant meeting the requirements of GreenPro Ecolabel and qualifies as Green Product by CII-Green Products and Services Council.

Consolidated cash (including cash equivalents) and bank balances as at December 31, 2023 is Rs. 332.3 crore (after Payment of 80% stake acquisition of Gem Paints Private Limited).

During the quarter, PVC/CPVC Raw Material price were on downward trend, this resulted in inventory Loss. The exact amount is not quantifiable (PVC price was down by -7% and CPVC price was down by -5%).

Promoters’ stake was 54.10% as of 31 December 2023 ,compared to 55.85% as of 31 December 2022 .

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Astral has increased 9.97% to Rs 4016.3 crore. Sales of Plumbing segment rose 10.32% to Rs 2,916.80 crore (accounting for 72.62% of total sales). Sales of Paints and Adhesives segment has gone up 9.04% to Rs 1,099.50 crore (accounting for 27.38% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 31.39% to Rs 500.20 crore. PBIT of Plumbing segment rose 34.86% to Rs 395.00 crore (accounting for 78.97% of total PBIT). PBIT of Paints and Adhesives segment rose 19.82% to Rs 105.20 crore (accounting for 21.03% of total PBIT).

PBIT margin of Plumbing segment rose from 11.08% to 13.54%. PBIT margin of Paints and Adhesives segment rose from 8.71% to 9.57%. Overall PBIT margin rose from 10.42% to 12.45%.

Operating profit margin has jumped from 13.72% to 15.61%, leading to 25.11% rise in operating profit to Rs 626.80 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.67% to 61.73%. Purchase of finished goods cost fell from 1.23% to 1.15%. Employee cost increased from 6.33% to 7.71%. Other expenses rose from 11.17% to 14.26%.

Other income rose 58.71% to Rs 31.9 crore. PBIDT rose 26.41% to Rs 658.7 crore. Provision for interest fell 41.96% to Rs 21.3 crore.

PBDT rose 31.59% to Rs 637.4 crore. Provision for depreciation rose 8.61% to Rs 145.1 crore.

Profit before tax grew 40.34% to Rs 492.30 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 128 crore, compared to Rs 90.3 crore. Effective tax rate was 26.00% compared to 25.74%.

Net profit attributable to owners of the company increased 48.71% to Rs 364.50 crore.

Promoters’ stake was 54.10% as of 31 December 2023 ,compared to 55.85% as of 31 December 2022 .

The scrip trades at Rs 1845

Astral : Consolidated Results
Particulars	2312 (03)	2212 (03)	Var.(%)	2312 (09)	2212 (09)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales (including other operating income)	1,370.20	1,267.80	8	4,016.30	3,652.30	10	5,158.50	4,394.00	17
OPM (%)	14.97	14.7		15.61	13.72		15.7	17.19
OP	205.1	186.4	10	626.8	501	25	809.9	755.3	7
Other Inc.	6.4	-2	LP	31.9	20.1	59	26.7	34.9	-24
PBIDT	211.5	184.4	15	658.7	521.1	26	836.6	790.2	6
Interest	7.5	9.4	-20	21.3	36.7	-42	40	12.9	210
PBDT	204	175	17	637.4	484.4	32	796.6	777.3	2
Depreciation	50.1	45.5	10	145.1	133.6	9	178.1	126.9	40
PBT	153.9	129.5	19	492.3	350.8	40	618.5	650.4	-5
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	-1.5	-1.9	21
PBT before EO	153.9	129.5	19	492.3	350.8	40	617	648.5	-5
EO Income	0	0	-	0	0	-	-1.8	0	-
PBT after EO	153.9	129.5	19	492.3	350.8	40	615.2	648.5	-5
Taxation	40.6	34.6	17	128	90.3	42	155.7	158.1	-2
PAT	113.3	94.9	19	364.3	260.5	40	459.5	490.4	-6
Minority Interest (MI)	-0.2	2.2	LP	-0.2	15.4	LP	15.9	6.6	141
Net profit	113.5	92.7	22	364.5	245.1	49	443.6	483.8	-8
EPS (Rs)*	#	#		#	#		16.56	18.01
Notes
* EPS is on current equity of Rs 26.86 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Astral : Consolidated Segment Results
	% of (Total)	2312 (03)	2212 (03)	Var.(%)	% of (Total)	2312 (09)	2212 (09)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Plumbing	73	998.1	931.8	7	73	2,916.80	2,644.00	10	73	3,767.50	3,365.80	12
Paints and Adhesives	27	372.1	336	11	27	1,099.50	1,008.30	9	27	1,391.00	1,028.20	35
Total Reported Sales	100	1,370.20	1,267.80	8	100	4,016.30	3,652.30	10	100	5,158.50	4,394.00	17
PBIT
Plumbing	79	128.4	111.4	15	79	395	292.9	35	79	514.4	520	-1
Paints and Adhesives	21	33.3	32.6	2	21	105.2	87.8	20	21	134.9	125.4	8
Total PBIT	100	161.7	144	12	100	500.2	380.7	31	100	649.3	645.4	1
Less : Interest		7.5	9.4	-20		21.3	36.7	-42		40	12.9	210
Add: Other un-allcoable		-0.3	-5.1	94		13.4	6.8	97		9.2	16	-43
PBT		153.9	129.5	19		492.3	350.8	40		618.5	648.5	-5

Previous News

Astral fixes record date for interim dividend
( Market Beat - Reports 10-Oct-23 17:31 )

Astral consolidated net profit rises 89.87% in the September 2023 quarter
( Results - Announcements 19-Oct-23 07:44 )

Volumes soar at Astral Ltd counter
( Hot Pursuit - 16-May-23 14:30 )

Astral fixes record date for interim dividend
( Market Beat - Reports 19-Oct-23 09:35 )

Kirloskar Ferrous Industries Ltd leads losers in 'A' group
( Hot Pursuit - 18-May-24 15:00 )

Board of Astral recommends Interim Dividend
( Corporate News - 19-Oct-23 09:40 )

Astral fixes record date for bonus issue
( Market Beat - Reports 07-Feb-23 19:10 )

Astral consolidated net profit declines 50.14% in the September 2022 quarter
( Results - Announcements 11-Nov-22 17:54 )

Astral jumps after board approves acquisition additional 15% stake in British subsidiary
( Hot Pursuit - 15-Sep-22 12:20 )

Astral Poly Technik consolidated net profit declines 57.75% in the June 2020 quarter
( Results - Announcements 05-Aug-20 07:56 )

Astral starts production of adhesives at Dahej plant
( Corporate News - 26-Oct-23 17:10 )