- 07 Feb 2023
- ICICIdirect
GROWTH IN TOPLINE, PROFITABILITY UNDER PRESSURE - ASTRAL LATEST QUARTERLY RESULT
ASTRAL - 1419 Change: 59.40 (4.37 %)Astral – Q3FY23 First Cut
(CMP: Rs 2075; M-Cap: Rs 41,781 crore)
Q3FY23 Earnings Summary
Astral's consolidated revenue grew by 15% YoY to ~Rs 1268 crore (vs I-direct estimate: ~Rs 1237 crore) led by revenue growth across its segments. Astral’s plastic piping segment reported a revenue growth of ~11% YoY to ~Rs 932 crore (Vs I-direct estimate ~Rs 891 crore). On the Paints & Adhesives front, company has recorded a revenue growth of 28.6% YoY to ~Rs 336 crore (vs I-direct estimate: Rs 334.6 crore)
Gross margin declined by ~152 bps YoY (up 245 bps QoQ) mainly due to usage of high-cost inventory. This has led to overall fall in EBITDA margin by ~322 bps YoY (up 241 bps QoQ) to 14.7% in Q3FY23 (vs I-direct estimate: 15.4%)
PAT came in at ~Rs 95 crore, down ~26% YoY (vs I-direct estimate: ~Rs 109 crore) tracking sharp fall in EBITDA as well as higher interest and depreciation costs
View: We believe that Astral posted an encouraging performance on the revenue front. However, even though margins improved on a QoQ basis, EBITDA margin is still lower than the company's pre-Covid range of 17-18%. Higher interest cost (up 4.5x YoY) has kept PAT under pressure. We await management commentary on sustainable margin guidance going forward.
Impact: Negative