- 30 May 2022
- ICICIdirect Research
ASTRAL POLY POSTS STRONG REVENUE GROWTH LED BY VOLUME GROWTH, HIGHER REALISATIONS
ASTRAL - 1851 Change: 6.15 (0.33 %)News:Astral’s consolidated revenue increased by ~23.3% YoY to ~Rs 1391 crores led by strong growth in both piping and adhesives segments. Higher raw material prices led to decline in gross margin by ~763 bps YoY leading to fall in EBITDA margin by ~700 bps to 15.6%. PAT declined by 18% YoY to ~Rs 144 crore due to sharp fall in EBITDA margin.
Views: In the last year, as part of its diversification strategy, the company has entered two new categories: sanitaryware and paints. For FY22, the company reported a strong topline growth of 38% YoY to Rs 4394 crore. Revenue in the piping and adhesive segments increased by 39% and 37%, respectively, to Rs 3365 crore and Rs 1028 crore. However, EBITDA margin fell by 300 bps YoY to 18%, led by ecline in gross margins by 400 bps. PAT increased by 20% YoY to Rs 490 crore, owing to higher sales growth. We await management's comments about the company's future capital allocation strategy and EBITDA margin movement in the new business.
Impact: Neutral