- 04 May 2022
- ICICIdirect Research
Astec Life posts good Q4FY22 numbersASTEC - 1209 Change: 2.95 (0.24 %)
News: Astec Lreported revenue growth of 58% YoY to Rs 272 crore against our estimates of Rs 250.6 crore. The growth was primarily outlined due to strong export sales. The revenue from exports increased by 127.3% YoY to Rs 192.6 crore, led by better realisations and increase in CMO volumes due to herbicide plant ramp up. OPM expanded by 190bps YoY to 24.1% owing to higher gross margins (+80bps YoY), which led EBITDA growth of 71% YoY to Rs 65.5 crore against our estimates of Rs 63.7 crore. PAT for the quarter was up by 80% YoY to Rs 43.1 crore against our estimates of Rs 40.1 crore. The growth was led by strong operational performance along with higher other income (+339% YoY).
Views: Herbicide plant utilisation is likely to ramp up next year and thereby CRAMS revenues. Since CRAMS is margins accretive to overall group performance, we expect inching up share of former to drive group margins further. Apart from this, company is also working on expanding enterprise sales by developing three triazole molecules with a global market size of US$ 1 billion. Since Astec is prominent player in triazole category, we expect it to hold meaningful market share in those molecules over the medium to long run.