Q4FY21 Result Update - Astral Ltd - ICICI Direct

Astral Ltd has reported an all-round performance in Q4FY21 with revenue and PAT coming in much ahead of our expectation. Consolidated revenue growth at 79% YoY to Rs. 1128 crore was ahead of our expectation of 36% growth. This was mainly driven by strong performance of both piping and adhesive businesses. Standalone piping revenue increased 80% YoY to ~Rs. 910 crore supported by ~26% YoY growth in volume. Strong demand from housing and construction segment helped drive volumes in Q4FY21. On the adhesive front, segment revenue growth at 78% YoY to Rs. 241 crore was on a lower base and streamlining of distribution networks. The management commentary suggests, a short-term demand blip due to ongoing lockdowns. We slightly tweak our revenue and earnings estimate downward by 2% and 5%, respectively. However, strong future demand post opening up of the economy backed by government thrust on Jal Jeevan Mission and other infrastructure spend keeps medium to long term piping segment volume growth guidance at ~15% intact for Astral. The adhesive business revenue growth guidance at 20% is also intact supported by new product launches and dealer expansion in new geographies. The management also revised long term EBITDA margin guidance upward by ~16-19% with restoration of advertisement & other costs.

For details, click on the link below: Link to the report

Shares of ASTRAL LTD. was last trading in BSE at Rs.1783.25 as compared to the previous close of Rs. 1813.9. The total number of shares traded during the day was 18111 in over 2093 trades.

The stock hit an intraday high of Rs. 1824.8 and intraday low of 1764. The net turnover during the day was Rs. 32369763.

Source : Equity Bulls

Keywords