APL Apollo Tubes (533758) Q4 11/12 earnings summary

Executive summary

• FY2011-12 gross sales rose 55.95% YoY to ₹15,362.63 million; EBITDA grew 26.19% and net profit 13.83%, despite a subdued economy and infrastructure slowdown.

• Capacity reached 500,000 TPA across five manufacturing facilities; stated 2015 goals are 1 million TPA and US$1 billion revenue.

Financial highlights

• Consolidated net revenue from operations was ₹13,922.91 million, versus ₹9,051.94 million in FY2010-11; gross revenue was ₹15,362.63 million.

• Consolidated operating EBITDA was ₹1,150.84 million versus ₹896.56 million; PAT rose to ₹490.55 million from ₹430.94 million.

• Cash profit increased 18.45% to ₹583.77 million; consolidated EPS was ₹24.11 versus ₹21.23.

• Standalone PAT was ₹287.55 million versus ₹253.80 million; standalone revenue from operations was ₹10,843.07 million versus ₹5,892.32 million.

Outlook and guidance

• Targeting 1 million TPA capacity and US$1 billion revenue by 2015, with capacity additions planned in phases during FY2012-13 and FY2013-14.

• Expansion priorities include new tube mills at Hosur and Murbad, plant debottlenecking, modernization, and additional sheet galvanizing facilities.

• Management expected additional orders in telecom, solar and wind power sectors in FY2012-13 and subsequent years, while pursuing higher efficiency, reach and margins.