APL Apollo Tubes

Summary Q1FY 24

• APL Apollo Tubes had a successful quarter with the highest-ever volume sold at 662,000 tons, demonstrating market leadership and growth-focused mindset.
• Operational highlights for the quarter:
  1. Revenue increased by 32% to 4544 Cr.
  2. EBITDA increased by 58% to 307 Cr.
  3. EBITDA/Ton for the quarter was 4645.
  4. PAT increased by 60% to 193 Cr.
  5. Value Added products accounted for 57% of Total Revenues; aiming for 70% when Raipur plant is at full capacity.
• EBITDA per ton was impacted by channel de-stocking but expected to improve and stabilize around 6000 in Q3 FY24.
• Efforts to reduce Employee, Power, and Freight costs to support EBITDA per ton in medium term.
• Excluding Raipur Plant, EBITDA per ton higher at 5700.
• Provided guidance for future volumes:
  • FY24: 3.0 Million TPA
  • FY25: 4.0 Million TPA
  • FY26: 5.0 Million TPA
• FY24 EBITDA guidance: 1400-1500 Cr (40-45% growth over FY23).
• Raipur plant production started, aiming for 0.5-0.6 Million TPA for FY24 with EBITDA per Ton improving.
• Raipur plant for Value-Added Products; new greenfield plants for commoditized products.
• Expecting 100 Cr incentive from Chhattisgarh government for Raipur plant investment.
• Capex of 300 Cr for 5.0 Million TPA capacity by Q4 FY24; plans for additional 5.0 Million TPA capacity later.