APL Apollo Tubes (533758) Q4 10/11 earnings summary

Executive summary

• FY11 revenue grew 47.93% YoY and net profit rose 44.74%; growth was supported by capacity expansion, acquisitions, wider distribution and value-added products.

• Capacity reached 490,000 MTPA across five manufacturing locations in four states; steel tube sales were 225,142 MT versus 156,584 MT in FY10.

Financial highlights

• Consolidated gross sales were ₹985.15 crore, up 47.93% YoY; EBITDA was ₹89.27 crore and net profit ₹43.09 crore.

• Consolidated cash profit increased 46.23% YoY; EPS was ₹21.32 versus ₹13.61 in FY10.

• Standalone gross realisation was ₹643.38 crore; net profit was ₹25.53 crore versus ₹15.08 crore in FY10.

Outlook and guidance

• Targeting 1 million MTPA capacity and $1 billion revenue by 2015; management projected $500 million revenue by FY13 and capacity growth of 50% over the next two years.

• Capacity utilization and production were expected to ramp up, with 75% of installed capacity projected for production in FY12.

• Plans included growing value-added sales, exports, retail distribution and adjacent products; warehouse-cum-branches were targeted to increase from 10 to 30 by 2012.