Earnings Review
APL Apollo profit grows 23% on year but misses Street view
This story was originally published at 18:20 IST on 24 July 2025
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--APL Apollo Apr-Jun consol net profit INR 2.37 bln vs INR 1.93 bln yr ago
--Analysts saw APL Apollo Apr-Jun consol net profit at INR 2.48 bln
--APL Apollo Apr-Jun consol revenue INR 51.70 bln vs INR 49.74 bln year ago
--APL Apollo Apr-Jun consol EBITDA INR 3.72 bln vs INR 3.02 bln year ago
--APL Apollo Apr-Jun consol EBITDA/tn INR 4,683 vs INR 4,183 year ago
--APL Apollo Apr-Jun consol sales volume 794,000 tn vs 721,000 tn year ago
--APL Apollo: Aim 6.8 mln tn total capacity by FY28
--APL Apollo Apr-Jun consol cash profit INR 2.9 bln, up 22% on year
By Shreya Shetty
MUMBAI – Steel pipes and tubes manufacturer APL Apollo Tubes Ltd. reported better performance on year on strong volumes but failed to meet the Street's expectations. The company's net profit rose nearly 23% on year to INR 2.37 billion but fell short of the Street's consensus prediction of INR 2.48 billion.
Total revenue from operations for the June quarter grew nearly 4% on year to INR 51.70 billion, slightly lower than analysts' expectation of INR 52.99 billion. The company's revenue fell more than 6% on quarter while its consolidated net profit fell over 19% from the trailing quarter. The company's revenue growth was largely driven by sales volume, which grew 10% on year to 794,000 tonnes in the June quarter, though it declined 7% on quarter. Volumes were down from the previous quarter due to subdued demand and lower output from the company's Dubai plant, analysts said.
The company's earnings before interest, tax, depreciation, and amortisation for Apr-Jun rose 23% on year to INR 3.72 billion, lower than INR 3.90 billion predicted by the Street. The company's EBITDA per tonne rose 12% from the previous year to INR 4,683 per tonne. In the June quarter last year, its EBITDA per tonne was INR 4,183.
The company's overall expenditure during the quarter rose nearly 3% on year to INR 48.85 billion. Cost of materials consumed, which accounts for about 85% of total expenditure, was up by 1% on year at INR 41.33 billion.
The steel pipemaker's value-added sales mix for the June quarter stood at 61%, compared to 58% in the previous quarter. Sales of the "Apollo Z" product category in the latest quarter were at 254,275 tonnes, up 16% on year and 6% sequentially. This product category includes rust-proof and coated products. Meanwhile, its cash profit in the June quarter was INR 2.90 billion, up 22% on year but down 17% on quarter.
The company said it will incur capital expenditure of INR 15.00 billion over the next three years to expand capacity to 6.8 million tonnes from 4.5 million tonnes. End
Edited by Rajeev Pai
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