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

Executive summary

• Achieved record annual sales volume of 3.158 million tons in FY25, becoming the world's largest downstream steel player outside China in structural steel tubes.

• Q4FY25 saw record quarterly sales of 850k tons, up 25% YoY, and revenue of ₹55.1Bn, with annual revenue reaching ₹20,689.54 crore, up 14% YoY.

• FY25 net profit was ₹757.06 crore, up 3% YoY, with Q4FY25 net profit at ₹293.11 crore, up 72% YoY.

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

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

Financial highlights

• FY25 EBITDA per ton was INR 3,900, with Q4FY25 EBITDA/ton at ₹4,864 (+18% YoY); FY25 EBITDA was ₹12Bn (+1% YoY).

• Consolidated revenue for FY25 was ₹20,689.54 crore, up from ₹18,118.80 crore in FY24.

• Net cash position improved to ₹3.1Bn in FY25, with net working capital days reduced to zero.

• Return on capital employed (ROCE) for FY25 was 24.5%.

• Operating cash flow for FY25 was ₹12.1Bn; free cash flow at ₹3.7Bn.

Outlook and guidance

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

• Targeting EBITDA spread near INR 5,000 per ton in FY26, with further improvement expected.

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

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

• Plants are currently running at optimum capacity utilization.