Astral (ASTRAL) Q1 24/25 earnings summary

Executive summary

• Achieved 16% volume growth in Q1 FY25, in line with 15%+ annual guidance despite high raw material volatility.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25 on August 8, 2024.

• Consolidated revenue grew 8% year-over-year, with strong performance in core segments and new verticals.

• Financials reviewed by Audit Committee and statutory auditors, with no material misstatements identified.

• Management emphasizes evaluating results on a yearly basis due to ongoing polymer price fluctuations.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹12,530 million, up from ₹11,490 million in Q1 FY24.

• Consolidated revenue from operations for Q1 FY25 was ₹13,836 million, up from ₹12,831 million in Q1 FY24.

• Plumbing business revenue rose 8% YoY to INR 1,013 crore with 17.94% EBITDA margin (including other income).

• Adhesive business in India grew 14% YoY to INR 240 crore, maintaining a 16% EBITDA margin.

• Standalone net profit for Q1 FY25 was ₹1,281 million, compared to ₹1,192 million in Q1 FY24.

Outlook and guidance

• Annual volume growth guidance maintained at 15%+, with potential for upside if peak quarters perform well.

• Paints business targets double-digit EBITDA margin for FY25, with revenue growth as new states are added.

• Adhesives India expected to deliver 15%-20% growth and maintain 16% EBITDA margin; UK adhesives guided for 8%-10% growth and 7%-8% EBITDA margin.

• CapEx guidance for FY25 is around INR 350 crore.

• Previous period figures regrouped/reclassified to align with current period's classification.