APL Apollo Tubes Limited , India's leading branded structural steel tube manufacturer, has announced its financial results for the first quarter, showcasing robust growth despite challenging market conditions. The company reported a 23% year-over-year increase in both EBITDA and net profit, while also revising its volume growth forecast.

Financial Highlights

For the quarter ended June 30, APL Apollo Tubes reported:

• Sales volume of 794,350 tons, up 10% year-over-year (YoY)
• Revenue increased by 4% YoY to Rs 5,169.77 crore
• EBITDA grew by 23% YoY to Rs 372.00 crore
• EBITDA per ton improved to Rs 4,683, a 12% YoY increase
• Net profit rose by 23% YoY to Rs 237.17 crore

Revised Growth Forecast

Despite the strong quarterly performance, APL Apollo has adjusted its volume growth forecast. The company now projects a 10-15% growth rate, down from the previously estimated 15-20%. This revision comes in light of slower performance observed in the first half of the year.

Market Challenges and Outlook

Mr. Sanjay Gupta, Chairman of APL Apollo, commented on the results: "The company reported 10% YoY growth in sales volume which was below our own expectations. The demand conditions for the structural steel tube industry were tough due to challenging macroeconomic environment, geopolitical tension, USA tariff uncertainty and slowdown in government spending."

He added, "Early onset of monsoon season across India impacted construction industry. We expect demand conditions to improve in second half of the current financial year on the back of an improved government budget allocation for the infrastructure sector."

Strategic Initiatives and Expansion

APL Apollo continues to focus on strategic growth initiatives:

1. Capacity Expansion: The company plans to increase its total capacity from 4.5 million tons to 6.8 million tons by FY28.
2. Product Innovation: Emphasis on developing new, environmentally friendly products.
3. Operational Excellence: Achieved a Return on Equity (ROE) of 21.9% and Return on Capital Employed (ROCE) of 28.6% in Q1.

Board Appointments

In a move to strengthen its leadership, APL Apollo has made several key appointments to its board:

1. Shri Chakram Kumar Singh as Whole Time Director and Chief Operating Officer
2. Shri Dukhabandhu Rath as an Independent Director
3. Shri Rakesh Sharma as an Independent Director

Employee Stock Option Plan

The company has approved the institution of the APL Apollo Tubes Employees Stock Option Plan 2025, with a pool of 50,00,000 options exercisable into an equal number of equity shares.

Despite the revised growth forecast, APL Apollo Tubes remains optimistic about its long-term prospects. The company's commitment to innovation, operational efficiency, and strategic expansion positions it well to capitalize on future growth opportunities in the structural steel tube market.

APL Apollo Tubes Limited , India's leading branded structural steel tube manufacturer, has announced its financial results for the first quarter, demonstrating resilience amid challenging market conditions.

Key Financial Highlights

• Sales volume increased by 10% year-over-year to 794,350 tons
• Revenue rose by 4% to Rs 5,169.77 crore
• EBITDA grew by 23% to Rs 372.00 crore
• Net profit surged by 23% to Rs 237.17 crore
• EBITDA per ton improved by 12% to Rs 4,683

Performance Analysis

Despite facing headwinds from a challenging macroeconomic environment, geopolitical tensions, and an early onset of the monsoon season, APL Apollo managed to deliver a solid performance in Q1. The company's sales volume growth of 10% year-over-year reflects its strong market position and ability to capture demand in a competitive landscape.

Financial Metrics

The company's focus on operational efficiency and value-added products has yielded positive results:

Management Commentary

Sanjay Gupta, Chairman of APL Apollo, commented on the results: "The company reported 10% YoY growth in sales volume, which was below our own expectations. The demand conditions for the structural steel tube industry were tough due to challenging macroeconomic environment, geopolitical tension, USA tariff uncertainty and slowdown in government spending. Early onset of monsoon season across India impacted the construction industry."

He added, "We expect demand conditions to improve in the second half of the current financial year on the back of an improved government budget allocation for the infrastructure sector. We are ready with our capacity, product range, distribution network, and brand pull."

Operational Highlights

• The value-added sales mix improved to 61% in Q1, up from 58% in the previous quarter
• Net working capital days stood at 6 days, reflecting efficient working capital management
• The company maintained a strong balance sheet with a net cash position of Rs 208.50 crore

Future Outlook

APL Apollo remains optimistic about the future, expecting improved performance in the second half of the financial year. The company's commitment to quality, customer satisfaction, and prudent working capital management positions it well to capitalize on potential growth opportunities in the infrastructure and construction sectors.

About APL Apollo Tubes Limited

APL Apollo Tubes Limited is India's leading structural steel tube manufacturer, operating 11 manufacturing facilities with a total capacity of 4.5 million tons. The company offers over 3,000 products for various applications in urban infrastructure, housing, and the commercial construction sector.

As APL Apollo Tubes continues to navigate through market challenges, its strong Q1 performance demonstrates the company's resilience and potential for growth in the coming quarters.