Astral shares crack 5% on sluggish Q4 show; PAT, margins take beating

Shares of Astral declined up to 4.9per cent at Rs 2189.10 per share on the BSE in Saturday’s intraday trade. The stock price dipped after the company delivered a 12 per cent drop in its profit after tax (PAT) for the January-March quarter of fiscal year 2023-24 (Q4FY24).

On Friday, Astral, a manufacturer of PVC pipes and plastic products, posted a decline of 11.7 per cent year-on-year (YoY) in its net profits, amounting to Rs 181.6 crore for March quarter. This compares to a net profit of Rs 206 crore in the same quarter of the previous year. The company's revenue from operations saw an 8 per cent rise to Rs 1,625 crore compared to Rs 1,506.2 crore in the corresponding period of the preceding fiscal year.

At the operational level, earnings before interest tax depreciation and amortisation (Ebitda) declined 5.7 per cent to Rs 291.4 crore in the fourth quarter of FY24 , down from Rs 309 crore in Q4FY23. The Ebitda margin for the reporting quarter stood at 17.9 per cent, down from 20.5 per cent in the corresponding period in FY23. 

On a full year basis, the revenues from operations increased by 9.3 per cent to Rs 5,641 crore as against Rs 5,158 crore in FY23. The company’s PAT grew by 18.7 per cent to Rs 545 crore in FY24 versus Rs 469 in FY23. 

During Q4, the bathware segment recorded sales of Rs 24.2 crore. With the company surpassing 1000 showrooms or dealers, it anticipates significant growth in the bathware division in FY25.

The board has proposed a final dividend of Rs 2.25 per equity share of Rs 1 each (face value) for the fiscal year ended March 31, 2024, subject to approval by members at the upcoming annual general meeting (AGM).

At 10:48 AM; the stock price of the company was trading 4.29 per cent lower at Rs 2205.35 per share. In comparison, the S&P BSE index was up by 0.06 per cent. The company is presently trading at a price to earnings multiple of 105.07 times.