Q1 2025 Astral Ltd Earnings Call Transcript
Key Points
- Astral Ltd (BOM:532830) achieved a 16% volume growth, surpassing their guidance of 15%.
- The Guwahati plant is fully operational, and the Hyderabad plant is set to start commercial production by the end of August 2024.
- The adhesive business in India saw a healthy growth of 14% with a stable EBITDA margin of 16%.
- The company launched Astral Paint in Gujarat and Karnataka, with positive initial market responses.
- Gross profit margins reached an all-time high of over 40% during the quarter.
- The UK adhesive operations experienced a negative growth of 5% in top line and a drop in EBITDA to 2.5% due to elections and slower job market growth.
- The EBITDA margin for the paint business dropped from 17% to 10% due to additional launch costs.
- Employee and other costs increased, impacting the EBITDA margin despite high gross profit margins.
- The company faced challenges in passing on PVC price increases to the market, affecting inventory gains.
- The bathware business has not yet reached the break-even point, impacting overall EBITDA.
Ladies and gentlemen, good day and welcome to the Astral Limited Q1 FY25 earnings conference call hosted by HDFC Securities. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Keshav Lahodi from HDFC Securities. Thank you and over to you, sir.
Good day, everyone. On behalf of HDFC Securities, we welcome you all to Q1 FY25 earnings call of Astral Limited. From the management side, we have Mr. Sandeep Engineer, Chairman and Managing Director; Mr. Kairav Engineer, Executive Director and Mr. Hiranand Savlani, Executive Director and Chief Financial Officer.
I will now hand over the call to the management for their opening remarks which will be followed by Q&A. Over to you, Sandeep, sir.
Thank you. Thanks for joining the earnings call of Q1. As you all are aware that the pre-COVID volatility of polymer and chemicals were in the range of 1%
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