Astral Ltd Analyst Meet and Q4 2024 Earnings Call Transcript
Key Points
- Astral Ltd (BOM:532830) reported a 24% growth in its piping business, showcasing strong performance in core operations.
- The company has received UL approval for its fire sprinkler products, enabling it to secure significant international projects, including five-star hotels.
- Astral Ltd (BOM:532830) has fully operational plants in Guwahati and Cuttack, with two new plants under construction in Hyderabad and Kanpur, expected to be operational within the fiscal year.
- The company is expanding its product portfolio with the introduction of OPVC pipes, which are expected to replace ductile iron pipes in infrastructure projects.
- Astral Ltd (BOM:532830) has launched Astral paints and is targeting a revenue of INR 300 crores in the next fiscal year, leveraging its strong brand and distribution network.
- The UK operations faced challenges due to a significant drop in raw material prices, resulting in lower EBITDA margins.
- The adhesive business in the UK did not grow in value terms and faced inventory losses, impacting overall profitability.
- The company experienced increased costs in sales promotion, freight, and power and fuel, which affected EBITDA margins.
- Astral Ltd (BOM:532830) is facing a volatile PVC price scenario, with prices expected to continue rising, potentially impacting cost structures.
- The faucets and ceramic ware business, although showing growth, is still in the stabilization phase and has yet to achieve significant profitability.
Thank you, everyone, for joining us for the meet for the last fiscals results. And I know there will be many questions, but I would first start briefly to apprise you about the business. To start with the piping business last year, we have given a growth of close to 24%.
As you are very well aware all of you that Astral is mainly concerned with the infrastructure industry. Our very few products go in the government infrastructure projects. We are more on the building space or the private infrastructure industry. Still in our CPVC has grown at a good pace, PVC equally grown and our new products have also grown at a substantial pace.
The fire sprinkler business, which we have been talking from many years, has grown at a very good pace last year and lot of acceptance have come from various markets. There are certain key approvals in fire system and highest of that is the UL approval and all of the Astral products have seeked UL approval in last year.
And this has helped us to get bigger projects, especially from
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