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

Executive summary

• Achieved record Q3 FY2025 sales volume, EBITDA, and net profit, rebounding from a weak Q2 and outpacing competitors with 20% nine-month sales growth.

• Q3FY25 sales volume reached 828k tons, up 37% YoY and 9% QoQ; revenue was ₹54.3Bn, up 30% YoY and 14% QoQ.

• Value-added sales mix at 56%, with a focus on de-commoditizing the portfolio and strong operational cash flows.

• International sales, especially from the Dubai plant, are robust, with 58% utilization and expansion planned.

• Board and Audit Committee reviewed and approved consolidated and standalone results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 saw a 10% QoQ sales volume growth, meeting guidance; EBITDA per ton in Q3 reached INR 4,000–4,500.

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

• 9MFY25 EBITDA at ₹7.9Bn, down 14% YoY; EBITDA/ton at ₹3,403, down 28% YoY.

• Consolidated revenue for the quarter was ₹5,432.73 crore, up from ₹4,773.91 crore in the previous quarter.

• Absolute EBITDA for FY2025 is expected to surpass last year’s INR 1,192 crore, despite Q2 weakness.

Outlook and guidance

• Targeting 3.15–3.2 million tons sales volume for FY2025, with full-year EBITDA to exceed last year’s figure.

• Sales volume targets: 4 million tons by FY2026 and 5 million tons by FY2027, with total capacity of 5Mn tons by FY26.

• EBITDA per ton target is INR 4,500 minimum, 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.