PVC pipes and plastic products maker Astral Ltd on Thursday (August 8) reported a 0.5% year-on-year (YoY) increase in net profit at ₹120.4 crore for the first quarter that ended June 30, 2024.

In the corresponding quarter, Astral posted a net profit of ₹119.8 crore, the company said in a regulatory filing. The company’s revenue from operations climbed 7.8% to ₹1,383.6 crore  against ₹1,283.1 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA increased 5.9% to ₹213.8 crore in the first quarter of this fiscal over ₹201.8 crore in the year-ago period.

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EBITDA margin stood at 15.5% in the reporting quarter against 15.7% year-on-year. EBITDA is earnings before interest, tax, depreciation, and amortisation.

During Q1 of FY25, Astral faced highly volatile PVC/CPVC raw material prices but managed to maintain its guidance of over 15% volume growth. The bathware segment registered sales of ₹26.2 crore, marking a 90% YoY growth.

The company’s Hyderabad plant has begun trial production and is set to start commercial production by the end of August 2024. Astral is entering the O-PVC market and has placed all machinery orders, expecting the first machine by October 2024.

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In the last week of June 2024, Astral launched Astral Paints in Gujarat and Karnataka, with plans to expand to more states in phases. The company achieved a decade-high gross profit percentage of 40.55% on a consolidated basis, despite increased employee costs due to new plant recruitments and geographic expansions, which are expected to benefit future quarters as volumes increase.

Additionally, Astral spent an extra ₹20 crore on brand building and promotional activities compared to the previous year, impacting EBITDA margins. As of June 30, 2024, consolidated cash and bank balances stood at ₹552.8 crore.

The results came after the close of the market hours. Shares of Astral Ltd ended at ₹2,088.95, down by ₹36.05, or 1.70%, on the BSE.

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