APL Apollo Tubes (533758) Q4 20/21 earnings summary

Executive summary

• FY21 delivered strong consolidated growth despite COVID disruption: revenue rose 10.05% to ₹8,499.75 crore, EBITDA increased 43.06% to ₹714.65 crore before depreciation, finance costs and tax, and PAT reached ₹407.70 crore.

• Early restart, rural-market expansion, cash-and-carry sales and a higher value-added mix supported profitability, cash generation and market-share gains.

Financial highlights

• Consolidated revenue from operations was ₹8,499.75 crore versus ₹7,723.23 crore in FY20; sales volume was 1.64 MT versus 1.63 MT, with second-half steel price increases supporting revenue.

• Consolidated EBITDA was ₹678.7 crore excluding other income, up 42%; EBITDA margin improved 180 bps to 8%, and EBITDA per tonne rose ~42% YoY.

• Consolidated PAT was ₹407.70 crore versus ₹256.00 crore; net cash from operations rose to ₹977.11 crore from ₹509.55 crore.

• Apollo Tricoat contributed 17% of FY21 topline versus 9% in FY20, on higher product volumes.

Outlook and guidance

• FY22 was expected to remain challenging after the second COVID wave; revenue and profit were affected in Q1, with gradual improvement expected after reopening and business momentum anticipated from Q2.

• Planned capacity expansion targets 4 MT, including 200,000 TPA each for 500x500 mm columns and colour-coated tubes at Raipur; the ~₹279.7 crore project is to be funded internally.

• Value-added products are targeted to reach ~75% of revenue in 2–3 years, from 57% in FY21, with blended EBITDA per tonne expected to approach ₹5,000.

• Plans include commissioning CRM mills at Murbad and Hosur and expanding dealer strength in East India by ~20% in FY22.