Astral rose 1.06% to Rs 2,249.10 after the company's consolidated net profit jumped 63% to Rs 143.30 crore on a 54.5% rise in net sales to Rs 1,154.10 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, EBITDA soared 48.81% to Rs 219.50 crore in Q2 FY22 from Rs 147.50 crore in Q2 FY21. EBITDA margin was at 19.02% in Q2 FY22 as against 19.74% in Q2 FY21. Profit margin improved to 12.42% in Q2 FY22 as compared to 11.77% in Q2 FY21. Cash profit surged 49.70% to Rs 174.70 crore in Q2 September 2021 from Rs 116.70 crore in Q2 September 2020. Cash profit margin stood at 15.14% in Q2 FY22 as compared to 15.62% in Q2 FY21.
On a segmental basis, revenues from pipe business soared 60.49% to Rs 910 crore in Q2 FY22 over Rs 567 crore in Q2 FY21. The plastic pipe industry has been facing huge challenges for growth due to pandemic (COVID-19) in last two years. Yet, Astral has outperformed in the industry in value terms as well as in volume terms.
Revenues from Adhesive business surged 36.6% to Rs 260.10 crore in Q2 FY22 over Rs 190.40 crore in Q2 FY21. Meanwhile, Pipes & Adhesives will receive a capex of Rs 200 crore to be spent in FY23 & FY24. This included a state of art plant for CPVC/ PVC pipes and fitting at Telangana for which company has already acquired a land admeasuring 98,970 sq. mt. (10,64,917 sq. ft.) from Telangana Govt. Astral is planning to start production by FY24 as its Hosur plant in Tamil Nadu will cross 80% plus capacity utilization by FY22.
Similarly, in adhesive business, Astral is putting up one more adhesive plant in chemical zone at Dahej (Gujarat). The plant will be ready by FY23 end and production will be available from FY-24 onwards. The company already has land in Dahej admeasuring 67,796 sq. mt. (7,29,485 sq. ft.)
The demand scenario of pipe as well as adhesives are good and Astral expects very encouraging sales numbers in both segments in coming times. The company is working on finalization of investment plan for sanitary ware & faucets and date of launching of the products will be communicated to shareholders by next quarter.
Consolidated net cash position as on 30 September 2021 stood at Rs 376.90 crore while total debt stood was at Rs 83.10 crore. The board of directors has recommended an interim dividend of Rs 1.25 per share. (face value of Re 1 each).
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Astral is engaged in the business of manufacturing and trading of pipes, fittings and adhesive solutions.
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