Hiranand Savlani, Executive Director and Chief Financial Officer (CFO) of Astral Limited expects volumes to improve in the near term.

“Even if, in the next half, we do 12%-13% we will cross the 20% annualised number. So definitely we are increasing our guidance 20% plus in volume terms,” he told CNBC-TV18.

Astral, which manufactures PVC pipes and plastic products, has allocated Rs 30 crore for land in Kanpur to set up a new plant with a capacity of 60,000 metric tonne. The plant is expected to be operational by the end of next year.

Savlani said various factors are working in their favour. Construction projects were experiencing an upswing, polymer prices had reached their lowest levels, leading to a reduction in the disparity between organised and unorganised prices.

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Talking about polymer prices, he said, “Polymer is also looking almost bottom out and from hereon we are not expecting that the prices will go further down. If the polymer price goes up from here, then definitely revenue will also be very excellent.”

The majority of polymer pipes are typically composed of a blend of plastic and vinyl known as Polyvinyl chloride (PVC).

Regarding other business segments, Savlani mentioned that the plan was for the bathware business to achieve breakeven in Q4. However, it is now expected to reach breakeven in FY25. The company is increasing investments in branding, a move anticipated to result in breakeven in FY25.

While UK sales experienced a slight slowdown compared to expectations, there is optimism that sales will pick up in the second half of the year. “Second half, we have planned in such a way that that geography will also give us a good number,” Savlani said.

The company announced a substantial 90% year-on-year (YoY) increase in its net profit for the second quarter ending on September 30, 2023. According to the company's regulatory filing, the net profit for this quarter reached Rs 131.2 crore, in contrast to Rs 69.1 crore during the same quarter in the previous year. Notably, a CNBC-TV18 poll had projected a profit of Rs 141 crore for the reviewed quarter.

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(Edited by : Shweta Mungre)