APL Apollo Tubes (533758) Q4 15/16 earnings summary

Executive summary

• FY16 consolidated net revenue rose 34% YoY to ₹4,213.59 crore; EBITDA increased 57% to ₹291.93 crore and PAT rose 58% to ₹100.57 crore.

• Production reached 898,690 tonnes, up 32%; capacity expanded to 1.3 MTPA, with 85% utilization.

Financial highlights

• Consolidated gross sales were ₹4,656.36 crore vs ₹3,481.73 crore; net sales were ₹4,213.59 crore vs ₹3,138.27 crore in FY15.

• Consolidated EBITDA was ₹291.93 crore vs ₹186.12 crore; PAT was ₹100.57 crore vs ₹63.75 crore.

• PBT before exceptional items was ₹188.32 crore; reported PBT was ₹162.99 crore after ₹25.33 crore exceptional items.

• Proposed FY16 dividend was ₹10/share vs ₹6/share for FY15; consolidated EPS was ₹42.91 vs ₹27.20.

Outlook and guidance

• Vision 2020 targets 2.5 MTPA production, annual sales-volume growth above 25%, EBITDA of ₹4,000/tonne and core ROE in the high twenties; debt-free status is also targeted.

• FY17 capex is planned at ₹200 crore, within a ₹500 crore three-year program, largely funded by internal accruals; FY17 capacity target is 1.6 MTPA.

• Raipur greenfield plant, with planned capacity of 3 lakh TPA, was expected to start by FY17 end; UAE facility is targeted to begin production at 1 lakh TPA in FY19, scaling to 3 lakh TPA in FY20.

• Management targets overall margins of 8–9%, supported by value-added products, technology and branding; branding spend planned above ₹10 crore in FY17.