India: APL Apollo Tubes posts the highest-ever quarterly figures in Q2FY24

India's leading structural steel pipe manufacturer, APL Apollo Tubes Limited, has achieved the highest-ever quarterly sales volume, revenue, EBITDA and net profit in the second quarter of FY'24 that ended on 30 September 2023, the company revealed in its investors call held on 30 October 2023.

The pipe maker recorded sales at 0.675 million tonnes (mnt) in Q2FY'24, up 2% q-o-q basis from 0.662 mnt in the previous quarter. The volume rose by 12% y-o-y against 0.602 mnt in the same quarter of the previous year. The company has given sales volume guidance of 2.8-3 mnt for FY'24.

The value-added products shares remained stable q-o-q to 54% in Q2FY'24.

The company expects sales of value-added products to grow in the coming quarters, thanks to new and innovative products. They are also optimistic about the strong sales of heavy structural steel tubes, and believes that value-added products could eventually account for 70% of total sales.

Other highlights-

EBITDA:

EBITDA per tonne rose by 4% q-o-q to INR 4,817/t in Q2 from INR 4,645/t in the previous quarter. Moreover, the same increased by 25% y-o-y compared to INR 3,850/t in Q2FY'23.

EBIDTA was INR 3,250 million in Q2, up 6% q-o-q from INR 3,072 million in the previous quarter. Moreover, it increased by 40% y-o-y from INR 2,319 million in Q2FY'23.

Revenue growth:

The company saw a growth of 2% q-o-q in revenue to INR 46,304 million in Q2 against INR 45,449 million in Q1. Moreover, on a y-o-y basis, revenue increased by 17% compared to INR 39,692 million in Q2FY'23.

Net profit:

Company's net profit rose by 5% q-o-q to INR 2,029 million in Q2 compared to INR 1,936 milllion in the previous quarter. In addition, the same increased by 35% y-o-y against INR 1,502 million the same quarter of FY23.

Capacity increase:

The company's current capacity is 3.6 mntpa (million tonnes per annum) and the plan is to increase the same to 5 mntpa by FY25 with 0.5 mntpa of capacity coming from greenfield projects and 0.9 mntpa from brownfield projects. Almost 70% of this upcoming capacity is in value added products.

Raipur plant updates:

The plant is having current capacity of 1.2 MTPA mtpa and is planning to increase its capacity and also to manufacture high value added products in 3 key product categories -

• High Diameter High Thickness Tubes: The capacity of the plant will be 0.3 mntpa. The product will be available in sizes 500m x 500m and 1000m x 1000m.
  
  
• Coated Tubes: The product will be available as colored and galvanised tubes with a capacity of 0.3 mntpa.
  
  
• Coated Products: The narrow cold rolled and flats products facility will have a capacity of 0.4 mntpa.
  
  

Upcoming project:

The company plans to build a new steel plant in East India with a capacity of 0.2 million tonnes per annum (mntpa). Land acquisition for this project is underway. The company is also setting up its first overseas steel plant in Dubai , with a capacity of 0.4 mntpa.

Vision 2025:

• The company aims to attain dominant position with 60% or more presence in the market.
  
  
• It also seeks to expand internationally, aiming for a 10% global market share.
  
  
• The company is committed to product innovation, striving to establish a strong presence in newer categories such as super heavy and coated products.
  
  
• It is also focused on customer centricity, investing in a B2C app and using Bollywood and sports to build brand appeal.