APL Apollo Tubes Ltd: Value Pick Stock November 2019, Update
Update
Q1 FY 2022-23 Numbers
Revenue From Operations
APL Apollo Tubes Limited – India’s leading branded structural steel tube company, today announced its financial results for the quarter ending June 30, 2022.
On a consolidated basis, the company has registered a revenue of INR 3438.55 Cr for the Q1 ending 2022 as compared to INR 4214.73 Cr for the period ended 31 March 2022, a fall of 18.42% quarter-on-quarter basis. However, the year-on-year revenues of the company grew by 35.68% (INR 2534.28 Cr for the Q1 FY21)
Total Expenses of the Company –
INR 3283.96 Cr as on 30 June 2022,
INR 2318.94 Cr as on 30 June 2021,
INR 3986.63 Cr as on 31 March 2022
EBITDA of the company stands at INR 202.25 crore in June 2022 down 23.65% from INR 264.89 crore in June 2021.
Profit After Tax
On a consolidated basis, the PAT of the company stood at INR 120.67 crore for Q1 FY 2022-23 as compared to INR 176.61 crore, de-grew by 31.67% Q-O-Q basis. However, on the Y-O-Y basis, profit of the company de-grew 28.35% (INR 168.42 Cr for the Q1 FY21)
The performance of the company was impacted because “the industry witnessed channel de-stocking due to domestic steel price correction,” management said in a BSE filling.
EPS stood as follows –
INR 4.28 as on 30 June 2022,
INR 5.90 as on 30 June 2021,
INR 6.52 as on 31 March 2022
Daily Chart –
apl apollo share closed at INR 909 (UP 0.90%) with a volume of 6,19,624 shares on the NSE.
APL Apollo Tubes Limited is a value pick stock of Finblab (given 1:1 bonus and split the face value of its shares from INR 10 to INR 2 in 2020) and maintain a Positive view on the company.
Chairman Speech –
APL Apollo Tubes Limited’s Q1 FY23 performance was impacted because the industry witnessed channel de-stocking due to domestic steel price correction. This was triggered by the imposition of duty on steel exports in May 2022. The domestic steel prices have corrected by 21% in Q1FY23. APL Apollo is confident of achieving 1HFY23 sales volume guidance of 1mn ton.
APL Apollo’s largest ever ‘New Raipur’ plant is commissioning on the expected lines. APL Apollo expects significant contribution from this plant to start from Q3FY23 onwards. The value added products contributed 61% in Q1FY23. APL Apollo expects this sales mix to improve further in coming quarters with the ramp-up of new Raipur plant. The sales mix would eventually move towards 75% for value added products.”
Final Comment: APL Apollo has posted a mixed set of numbers but maintaining good profitability ratios. Keeping future expansion (Total Capex of Rs 6.5bn to be funded from internal cash flows in FY23-24) and new initiatives in mind, the company looks good from a medium to long-term perspective.
Also Read: Q1 Numbers of Coromandel International Limited
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1 January 2020
Update:
APL Apollo’s Q3 FY20 Sales Performance
APL Apollo Tubes Ltd, country’s largest branded building material steel products company, today announced its sales volume performance for the quarter ending December 31, 2019.
The Company registered a strong sales volume of 480,225 MTPA in Q3 FY20, higher by 52.6 percent Y-O-Y from 3,14,707 MTPA in Q3 FY19. The growth was, by and large, led by strong demand across product categories.
Here is the product wise summary –
(Source – BSE)
8 November, 2019
APL Apollo Tubes Ltd is the largest producer of Electric Resistance Welded (ERW) Steel Pipes and Sections in India.
APL Apollo Tubes: History
APL Apollo Tubes Ltd was incorporated on February 24, 1986, as a private limited company. The company started with a unit at Sikandrabad (UP) to manufacture M. S. Pipe.
For over 3 decades APL Apollo has gone from strength to strength to lead the charge in revolutionizing the Steel Tubes and Pipes manufacturing industry.
APL Apollo Tubes: Business
APL Apollo Tubes is engaged in the business of production of ERW steel tubes, with a capacity to produce 2.5 Million Tonnes per annum.
The company is a One-Stop-Shop for a wide spectrum of steel structural products that cater to an array of sectors such as automobile, construction, energy, housing, irrigation, urban infrastructure, among others.
The company has been a pioneer in introducing modern technologies in the industry and is the first Company in India to introduce the latest global technology Direct Forming Technology (DFT)
The Company sells its products under the brand name APL Apollo
Products
The company has a diversified product portfolio of 400 product variants.
The production line consisting of MS Black Pipe, Pre-Galvanised Tube, Hot Dipped Galvanised, Hollow Sections, Apollo TriCoat.
The Company’s Innovative Products division has Flat / Oval Capsule Sections, Hand Rail, D-Sections, Elliptical Sections, Narrow Sections, and Taper Sections.
APL Apollo Tubes has patent products in Hand Rail, Narrow Section, Window L Section, Window T, Window Z, and Elliptical Tube.
APL APOLLO complies with major quality certifications including ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007.
APL Apollo Tubes: Manufacturing Units
The company has 6 manufacturing units, three at Sikandrabad (UP) and one in Hosur, Tamilnadu, one in Bengaluru, Karnataka and one in Murbad (Maharashtra)
APL Apollo caters extensively to the region and exports to over 20 countries globally.
The company’s vast distribution network is spread across India, with warehouses and branch offices in 29 cities.
Listed On
The shares of APL Apollo Tubes share are presently listed at Bombay Stock Exchange (BSE); CODE 533758 and National Stock Exchange (NSE) as APL Apollo
Stock Info: APL Apollo Tubes
Share Holding Pattern
Financials: APL Apollo Tubes Ltd
Conclusion
APL Apollo Tubes is the largest producer of Electric Resistance Welded Steel Pipes and Sections in India.
Promoters of the company are having more than 37% stake (stake increases since last 2 quarters) with 0% pledge shares.
Along with this, some of the top institutions like ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, DSP SMALL CAP FUND, Idfc Multi Cap Fund, Kotak Emerging Equity, HDFC TRUSTEE COMPANY LTD, MOBIUS INVESTMENT TRUST PLC, and GOLDMAN SACHS INDIA LIMITED is having more than 1% stake in the company.
On the technical front, the share price of APL Apollo Tubes Limited is trading well above its 50 EMA (1444) and 200 EMA (1421) on the daily chart.
Keeping the above listed factors in mind, APL Apollo Tubes Ltd looks good at INR 1438. Finblab recommends investing in the stock in staggered manner for medium to long term.
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