APL Apollo Tubes (533758) Q4 23/24 earnings summary

Executive summary

• FY24 sales volume rose 15% YoY to 2,618k tons; revenue increased 12% to ₹181.2bn, EBITDA 17% to ₹11.9bn and net profit 14% to ₹7.3bn.

• Q4FY24 volume rose 4% YoY to 679k tons and revenue 8% to ₹47.7bn, while EBITDA fell 13% to ₹2.8bn and net profit fell 16% to ₹1.7bn.

• Value-added products were 58% of FY24 sales mix versus 56% in FY23; FY24 ended with ₹0.18bn net cash versus ₹2.4bn net debt in FY23.

Financial highlights

• FY24 consolidated revenue was ₹181,188mn versus ₹161,660mn in FY23; EBITDA was ₹11,922mn versus ₹10,215mn; net profit was ₹7,324mn versus ₹6,419mn.

• Q4FY24 revenue was ₹47,657mn, up 8% YoY; EBITDA was ₹2,804mn, down 13% YoY; net profit was ₹1,704mn, down 16% YoY.

• Q4FY24 sales volume increased 4% YoY to 679k tons; EBITDA per ton declined 17% YoY to ₹4,132.

• FY24 cash profit reached ₹9.1bn, up 16% YoY; EBITDA per ton increased 2% YoY to ₹4,553.

Outlook and guidance

• Proposed capacity is 5mn tons, with completion targeted by FY25, versus existing capacity of 3.808mn tons.

• Structural steel tube market potential is forecast to grow at 12% CAGR from 2023 to 2030; the addressable HR-coil-based tube market is projected to grow at 18% CAGR.

• A pipeline of 45 projects covering 42mn sq. ft. was cited, alongside 94 ongoing enquiries for 220,000 tons of heavy structural steel tubes.

• Financial priorities include profitable organic growth, sustainable EPS growth and a target ROCE of at least 30%.