India: APL Apollo Increases Pipe Price by INR 500/MT (USD 7)

APL Apollo Tubes Ltd, one of the largest ERW pipes manufacturers in India including mild steel pipes and galvanized steel pipes, has increased price by INR 500/MT yesterday.

The current offers by APL Apollo for ERW Pipe reported at around INR 38,500/MT (USD 537), which was earlier trading at INR 38,000/MT; ex-plant in central India, Chhattisgarh.

As per the officials "the prices has been hike on account of good demand, rising raw material (flat steel) prices amid short supply of material.

Also added that, prices are likely to surge further by INR 500-1,000/MT for Dec'19 deliveries".

The company produces around 2.55 MnT Steel Pipes and Sections in India on yearly basis & exports to over 20 countries globally with vast distribution network across India. It has more than 790 dealers, 27 warehouses and 50,000 retailers located across the breadth and width of the country.

In context to price movement by secondary producers, they also raised prices and as per assessment made by SteelMint the prices hike by about INR 500-600/MT on monthly basis in Nov'19 and the fresh offers hovering at INR 30,700-30,800/MT ex-Raipur (Chhattisgarh), INR 30,500/MT ex-Rourkela (Odisha) & INR 34,200-34,300/MT ex-Gobindgarh (Punjab), excluding of 18% GST.

APL Apollo Tubes Ltd Performance Review (Q2 FY20 Vs Q2 FY19)

-- Sales Volume higher by 22% to 3.63 lakh tons from 3.04 lakh tons

-- Net Revenues decreases by 2% to INR 1,652 crore compared to INR 1,690 crore

-- EBITDA at INR 76 crore compared to INR 86 crore, decline by 12%. EBITDA per ton stood at INR 2,104/ton

-- PBT at INR 26 crore as compared to INR 41 crore, decline by 36%

-- Net Profit after Tax at INR 55 crore compared to INR 27 crore, higher by 104%