Astral

“somewhere around INR190 kind of realization was there. But the next quarter, we are expecting it will be more than INR200.”

“Again, that first half, we are at 11.5%. We are expecting that year-end, we will be closer to 13%- 14% kind of run rate.”

“We are happy to share that we have given guidance of double-digit volume growth in the plumbing vertical.”

“Definitely there will be an upper side, much upper side, I can say, rather than what 15% we have given.”

“even in the beginning of the year also, we have communicated that we will be a lower single-digit EBITDA for the full year basis. That is what we are communicating now also.”

“I think capex in the first half we have done INR260 crores. The balance portion is, I think, goodwill related thing is there because of acquisitions and all.”

“But since majority in any capex, 60%-70% of the cost is land and building. That is already there.”

“we are expecting to complete all our trials in the first month of Q4, and we will be commercially ready with the CPVC production by the last month of Q4.”

“So coming years, the capex will be in a lower end, especially with the land being acquired, which is a costly asset now.”

“As you are aware, Astral has spent sizable amount of capex in last four to five years across all verticals, and now it is the time to utilize the same and generate cash flows from there on.”

“I think maximum one quarter it will take.”

“Basically, in short, I can say that we have enough land and building available that if you want to add another 100 KT, we can do it in a matter of six to nine months.”

“We have enough land even to triple the capacities and all, or whether it's the paint business or whether it's the adhesive business.”

“So, we are quite confident that in the second half will be even much more than what we have delivered in the H1.”

“I think we will try to maintain the Q1, Q2 run rate in terms of the top-line growth.”

“we are not opening now any more geographies in Paint till we stabilize these states, grow in these states, and our EBITDA at least touches around 9%-10%.”

“Our new product contribution will start from this quarter itself, like aluminum PEX, HDPE, PPR, PE, electrofusion fitting.”

“We are very hopeful that we will continue our double-digit momentum into Q3 and also into Q4.”

“The prices are highly volatile and fluctuating, but due to the implementation of MIP, we feel that now at least the downward side is protected, and the industry will benefit from this.”

“The reason was that Q1 was very negative for the pipe industry, and the trade was sitting on a very low inventory, which supported all-round demand.”

“And we expect our growth at that robust pace to continue and deliver a healthy margin in this quarter.”

“I think it is the best October that we have had in the history of Astral in terms of all the product.”

“But because of the decentralizations of the plant, our demand was very good, and because we are gaining market share in new geographies where we have started new plants.”

“During the quarter, margins were under pressure due to high-cost inventories, and pass-through is taking place with a lag effect.”

“Yes, it will gradually improve moving into Q3, Q4, as per what we mentioned when we started the call.”

“Shravan, we have taken 5% hike in CPVC in the month of October.”

“So Q3 will also be a good margin because most of the things is already passed through.”

“To deliver that double-digit growth, sometimes you have to be aggressive in your pricing also, and sometimes product mix is also changed.”

“and we are getting our payment cycle has come down to 60 days, and which is a very good payment cycle for the paint business.”

“We normally consider the average days of holding, which is normally in the range of 55-60 days.”

“Because of that, payable days have come down. But once I think things will stabilize, payable days can again go up also.”

“This time, management has taken a call that dollar-related liabilities, looking to the war kind of situation, we have to reduce and try to see that we pay off early and take that advantage of discount or whatever available from the supplier.”

“No, that is based on the current environment, because right now the rupee was sharply depreciating.”

“This quarter, DSS has generated a good revenue of INR53 million and an EBITDA of INR8 million.”

“And as and when DSS also starts gearing up and adding value to the overall adhesive business, I think that is going to be a very good backward integration for the adhesive business.”

“We have also launched a complete range of PPR pipes and fittings, and also electrofusion HDPE drainage system is going to be launched very shortly.”

“In Q3, it will be in this quarter, Pex, aluminum Pex will be commercially sold from Astral, from its own plant and from its own product basket.”

“because these products will replace lot of the products which we import and use in our adhesive business, paint business, as well as we will able to sell these products to Indian market, export”

“we have already the warehouse and the big office in Bengaluru, which we got from the acquisition of Gem Paints, which was put on sold, has been now sold, and we will be getting around INR50 crores, around INR50+, INR51, INR52 crores from the sale of that asset back as in the capital.”

“No, because actually their pass-through was not taken place, otherwise definitely could have been there.”

“That is the reason you can see in the first half, there is no foreign currency-related loss in spite of having so much of fluctuation in the currency.”

“Now, at least with this, close to about INR85, INR90 kind of minimum base price will be there.”

“And now, even the countervailing duty is also there on the card, and provisional things are already issued by the government.”

“Like nobody expected that the crude will touch 115, 120 kind of level.”

“So, there is no reason that we believe that there will be a dent on the inventory.”

“Due to geopolitical situation, crude prices, and higher side, most of the chemicals derivatives of crude, hence the pressure continued on the margins.”

“which we have once again demonstrated in this quarter with a 19.10% volume growth and 10.1% volume growth for H1.”

“On a consolidated basis, this quarter INR1,988 crores versus last year INR1,577 crores, so an overall growth of 26%.”

“plumbing business had delivered INR1,398 crores against the last year similar quarter, INR1,118 crores. So 25% kind of growth is there.”

“Consolidated, INR272 crores, so 13.7% EBITDA margin.”

“In Q2, the plumbing business had delivered INR227 crores of EBITDA, so 16.3%.”