Earnings Review
APL Apollo Tubes posts strong profit growth in Jan-Mar, beats Street's views
This story was originally published at 18:05 IST on 7 May 2025
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--APL Apollo Jan-Mar consol net profit INR 2.93 bln
--Analysts saw APL Apollo Jan-Mar consol net profit INR 2.52 bln
--APL Apollo to pay INR 5.75 per share final dividend
--APL Apollo Jan-Mar consol net profit INR 2.93 bln vs INR 1.70 bln yr ago
--APL Apollo Jan-Mar consol revenue INR 55.09 bln vs INR 47.66 bln year ago
--APL Apollo FY25 consol net profit INR 7.57 bln vs INR 7.32 bln year ago
--APL Apollo FY25 consol revenue INR 206.90 bln vs INR 181.19 bln year ago
--APL Apollo OKs INR 15 bln capex over three years to expand capacity
--APL Apollo capex to expand capacity to 6.8 mln tns from 4.5 mln tns
--APL Apollo Jan-Mar consol EBITDA INR 4.14 bln vs INR 2.80 bln year ago
--APL Apollo Jan-Mar consol sales volume 850,000 tn vs 679,000 tn year ago
--APL Apollo Jan-Mar consol EBITDA per tn INR 4,864 vs INR 4,132 year ago
--APL Apollo Jan-Mar consol sales volume up 25% on year
--APL Apollo Jan-Mar value added sales mix 58% vs 56% qtr ago
--APL Apollo Jan-Mar consol cash profit INR 3.5 bln, up 62% on year
By Shreya Shetty
MUMBAI – Steel pipe maker APL Apollo Tubes Ltd. reported better than expected profit growth in the March quarter supported by a strong increase in sales volume. The company's net profit rose 72% on year to INR 2.93 billion, beating the Street's predictions of INR 2.52 billion. The on-year growth in the company's net profit was the highest in 15 quarters. The last time the company's net profit growth was higher was in the June quarter of 2021, when the profit had increased 126%.
Total revenue from operations for the March quarter grew nearly 16% on year to INR 55.09 billion, slightly lower than analysts' expectation of INR 56.02 billion. Sequentially, the company's revenue rose just 1.4% while its consolidated net profit rose over 35%. The company's revenue growth was largely driven by sales volume, which grew 25% on year to 850,447 tonnes in Jan-Mar, taking the total sales volume in 2024-25 (Apr-Mar) to 3.16 million tonnes, up 21% on year.
The bottom line for FY25 rose more than 3% to INR 7.57 billion while the top line rose more than 14% to INR 206.9 billion.
The company's earnings before interest, tax, depreciation, and amortisation for Jan-Mar rose nearly 5% on year to INR 4.14 billion, higher than INR 3.98 billion predicted by the Street. The company's EBITDA per tonne rose nearly 18% from the previous year to INR 4,864 per tonne. For the December quarter, its EBITDA per tonne was INR 4,173.
The company's overall expenditure during the quarter rose nearly 14% on year to INR 51.85 billion. Cost of materials consumed, which accounts for about 83% of the total expenditure, rose 13% on year to INR 43.01 billion. This was the highest rise in six quarters. The steel pipe maker's value added sales mix for the March quarter stood at 58%, compared to 56% in the previous quarter. Meanwhile, its cash profit in the March quarter was INR 3.5 billion, up 62% on year and up 31% on quarter.
The company said it will incur a capital expenditure of INR 15 billion over the next three years to expand capacity to 6.8 million tonnes from 4.5 million tonnes. The company said it plans to raise its market share in structural steel tubes to 8.3% in 2030 from 6.5% in FY24, indicating a growth to 17.30 million tonnes from 9.0 million tonnes.
The company will pay a final dividend of INR 5.75 per equity share of face value INR 2 each for FY25. On Wednesday, shares of the company closed 3% higher at INR 1,663 on the National Stock Exchange, before the company announced its earnings. End
Edited by Ashish Shirke
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