Q4FY22 Results Update
Astral reported a healthy revenue of INR 13.9 Bn in Q4FY22 up by 23.3% YoY and 26.5% QoQ. Plastic revenue increased by 22.3% YoY to INR 10.8 Bn, while Adhesive revenue jumped by 27% YoY to INR 3.1 Bn. EBITDA fell by 14.8% YoY and up 9.7% QoQ to INR 2.2 Bn, while EBITDA margin dipped by 700bps YoY to 15.6%, due to the higher raw material cost (+39% YoY). EBITDA margin of Plastic segment declined by. PAT came in at INR 1.46 Bn, down 17.3% YoY and up 14.2% QoQ. For FY22, Astral reported 21% YoY growth in PAT at INR 4.9 Bn, while revenue rose by 37% YoY to INR 43.4 Bn.
Astral expects its major capex to be completed by FY23 and post which, there will be a maintenance capex of INR 400-500mn every year. Construction activity of its adhesive plant in the chemical zone of Dahej (Gujarat) is on in full swing and the plant will be ready by FY23- end.
The company has launched various products in the Adhesive & Sealants segment under a different chemistry, whereby revenue is expected to double in 5 years with the existing products. Astral has a market share of 9.5% in Pipes business. The additional two new pipe plants at Sangli and Aurangabad will increase its market share in Maharashtra and South India markets over the next 5 years. It is expected that the newly undertaken businesses like Water Tanks, Faucet, Sanitaryware, Paints, and Drain Pro will contribute significantly to company’s growth in the future.
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