Astral Q4 Results Review - A Mix Bag Quarter; Robust Outlook Across Segments Intact: Systematix

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Astral Ltd.’s Q4 came broadly inline as weak result in adhesives and paints (revenue up 4% YoY, Ebitda margin 12.9%) was offset by strong pipes Ebitda (20.4% margin, Rs 38/kg). Pipes volume/revenue grew 23%/9% YoY. It generated a strong Rs 8.2 billion CFO in FY24 (utilized for Rs 5.5 billion capex). Cash surplus of ~Rs 6 billion will be used for growth capex. After 24% pipes volume growth in FY24, Astral has maintained its 15-20% CAGR guidance (versus 10-12% for industry) for next few years. Ebitda margin (18%+) will be aided by savings from logistics costs (plants across regions), lower advertising and promotion spend (FY24: Rs 1.75 billion including Rs 350 million one-time spend on 25th anniversary celebration; to discontinue big celebrity endorsement) and operating leverage benefits. Hyderabad (June 2024) and Kanpur (Q4) plants are scheduled to start production in FY25. Starting from Ahmedabad, O-PVC pipes will be manufactured at all plants. Water tanks (FY24 revenue: Rs 1.15 billion; 20% CAGR) and Bathware (FY24/25E revenue: Rs 620 million/1.25 billion, Ebitda breakeven in FY25 from Rs 180 million loss in FY24) are high growth areas..Click on the attachment to read the full report:.JSW Steel Q4 Results Review - Operating Performance Inline; Outlook Bright: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Astral Q4 Results Review - A Mix Bag Quarter; Robust Outlook Across Segments Intact: Systematix

Robust growth and return on capital employed are keys to sustain high valuation

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Astral Q4 Results Review - A Mix Bag Quarter; Robust Outlook Across Segments Intact: Systematix

Robust growth and return on capital employed are keys to sustain high valuation

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