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Earnings Call Transcript

APL Apollo Tubes Earnings Call Transcript: Key Takeaways

Q1FY27 was a mixed quarter with volume missing expectations due to energy crises and UAE disruptions, but EBITDA per ton remained resilient due to pricing power.

Guidance and delivery
Management target EBITDA 20.0% FY27
Highlights
Revenue growthLower than expected volumes; July recovery up 20% month-on-month.
MarginsEBITDA/ton flat at ₹5500 despite negative operating leverage.
Demand visibilityImproving; destocking ending as steel prices stabilize.
Management confidenceHigh; confident in meeting full-year 20% EBITDA growth targets.

Growth

Volumes fell 20% QoQ to 745k tons; however, gross profit per ton improved by ₹1000.

Outlook

Management maintained FY27 guidance of 15-20% volume growth and >20% absolute EBITDA growth.

Risks

Secondary material competition and high raw material inflation slowing construction demand. UAE geopolitical disruptions impact exports.

Last quarter's promises, checked

Delivered

  • Guided negative working capital → Delivered negative cycle (= BEAT)
  • Guided 37% ROCE → Delivered 37% ROCE (= BEAT)
  • Guided ₹15bn net cash → Delivered ₹15bn+ net cash (= BEAT)

Partly delivered

  • Guided ₹5,300-5,500 EBITDA/ton → Delivered ₹5,500 (= BEAT)
  • Guided ₹5-6bn annual capex → Ongoing 8MT expansion (= PARTIAL)

Missed

  • Guided ~1MT volume for Q4 → Delivered 745k tons (= MISS)
  • Guided 15-20% volume growth → Delivered -20% QoQ (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: APLAPOLLO. Summary written with AI assistance from the document.

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APL Apollo Tubes Ltd: key numbers

Share price
₹2,214.70
Market cap
₹61,493 Cr
Revenue (annual)
₹23,079 Cr
Net profit (annual)
₹1,203 Cr
P/E (TTM)
50.0×Sector 19.0×
Promoter holding
28.25%+0.00% QoQ
FII holding
35.12%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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