APL Apollo Tubes (533758) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 achieved record sales volume of 721,064 tons, up 9% YoY and 6% QoQ, with consolidated revenue at ₹4,974.30 crore and net profit at ₹193.17 crore, despite challenging demand conditions.

• Value-added products contributed 60% to sales volume, up from 57% YoY, with strong growth in heavy structural steel tubes and coated products.

• Raipur plant is ramping up production, Dubai facility expansion enhances global presence and export capacity.

• EBITDA per ton was INR 4,183, impacted by non-recurring ESOP/SAR expenses and brand campaign costs.

• Guidance for FY25 sales volume remains at 3.2 million tons, with expectations of stronger H2 performance.

Financial highlights

• Q1 EBITDA per ton at INR 4,183 (-10% YoY, +1% QoQ); EBITDA: ₹3.0bn (+8% QoQ, -2% YoY); net profit: ₹1.9bn (flat YoY, +13% QoQ); revenue: ₹49.7bn (+9% YoY, +4% QoQ).

• Consolidated EPS for Q1 FY25 was ₹6.96; standalone EPS was ₹3.33.

• Working capital days increased to 3-4, with net debt near zero or at ₹1.5bn.

• ROCE: 24%; ROE: 20.3%.

• CapEx for new plants is on track, with INR 200-250 crore already spent.

Outlook and guidance

• Steel prices expected to bottom out by Q2, with H2 anticipated to be significantly stronger.

• FY25 sales volume guidance maintained at 3.2 million tons.

• Margin pressure expected in Q2 due to steel price uncertainty and potential inventory write-downs.

• Raipur and Dubai expansions expected to drive future growth and margins.

• Focus remains on innovation, customer experience, and expanding value-added product portfolio.