APL Apollo Tubes (533758) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly sales volume of 828k tons in Q3FY25, up 37% YoY and 9% QoQ, with all-time high sales, EBITDA, and net profit, rebounding from a weak Q2.

• Nine-month FY2025 sales volume grew 20% YoY, outpacing competitors and gaining significant market share.

• Value-added sales mix at 56%, with continued focus on de-commoditizing the product portfolio and strong international expansion, including Dubai plant at 58% utilization.

• Maintained strong operational cash flows and ongoing ESG transformation, with DJSI ESG score at 86th percentile.

• Consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and Audit Committee on January 20, 2025.

Financial highlights

• Q3 revenue reached ₹54.3Bn, a 30% YoY and 14% QoQ increase; EBITDA rose to ₹3.5Bn, up 24% YoY and 150% QoQ; net profit at ₹2.2Bn, up 31% YoY and 303% QoQ.

• 9MFY25 sales volume at 2,308k tons, up 19% YoY; revenue at ₹151.8Bn, up 14% YoY.

• EBITDA per ton in Q3 was within the INR 4,000–4,500 range; 9MFY25 EBITDA/ton at ₹3,403, down 28% YoY.

• Other expenses rose to INR 3.35 billion in Q3 from INR 3.1 billion in Q2, mainly due to higher freight, power, and plant utilization costs.

• Dividend of ₹5.50 per equity share (₹152.63 crore total) paid on October 1, 2024, for FY24.

Outlook and guidance

• Targeting 3.15–3.2 million tons sales volume for FY2025, 4 million by FY2026, and 5 million by FY2027, with new greenfield and brownfield expansions.

• EBITDA per ton targeted at INR 4,500 for Q4, with a long-term goal of INR 5,000–6,000 per ton.

• Solar structure segment expected to drive future demand, with 830,000-ton annual market opportunity by 2030.

• Committed to reducing Scope 1 & 2 emissions by 25% by 2030 and achieving Net Zero by 2050.

• Anticipates retail demand recovery and government spending to boost volumes in the second half of the year.