APL Apollo Tubes (533758) Q4 24/25 earnings summary

Executive summary

• Achieved record annual sales volume of 3.16 million tons in FY25, becoming the world's largest downstream steel player outside China in structural steel tubes, with strong revenue, EBITDA, and net profit growth despite challenging macroeconomic conditions.

• Maintained industry-leading working capital management with nearly zero working capital days for the fifth consecutive year due to a successful cash and carry strategy.

• Ended FY25 with net cash exceeding INR 300 crore and a net cash position of ₹3.1bn, supported by robust operating cash flow to EBITDA above 100%.

• CMD voluntarily surrendered remuneration and commission for FY25 and FY26 to set a cost discipline example.

• Board recommended a final dividend of ₹5.75 per share for FY25, subject to shareholder approval.

Financial highlights

• FY25 consolidated revenue was ₹20,689.54 crore, up from ₹18,118.80 crore in FY24, with EBITDA at ₹12bn (+1% YoY) and net profit at ₹757.06 crore (+3% YoY).

• EBITDA per ton for FY25 was INR 3,900, below historical levels due to depressed spreads, while Q4 EBITDA per ton was ₹4,864 (+18% YoY).

• Q4FY25 consolidated net profit was ₹293.11 crore, up from ₹170.44 crore in Q4 FY24.

• Cash profit for FY25 was ₹9.6bn (+6% YoY); net cash position: ₹3.1bn.

• Earnings per share (consolidated) for FY25 was ₹27.28, up from ₹26.40 in FY24.

Outlook and guidance

• Capacity expansion to 6.8–7 million tons by FY28, with a ₹1,500 crore CapEx plan funded internally and through loans if required.

• Targeting EBITDA spread near INR 5,000 per ton in FY26, with further improvement expected as sales mix and international expansion progress.

• Confident in sustaining 20% year-on-year volume growth for the next 3-4 years.

• ROC targeted at 35% for next year, with a long-term goal of 50%.

• Export share to rise from 6% to over 10% in the next two years.