Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q3 FY25 Earnings Presentation
37 slides from Apl Apollo Tubes's earnings presentation, Jan 21, 2025
Slide 1: Exchange filing cover letter for earnings presentation
20th January 2025 Electronic Filing National Stock Exchange of India Limited Department of Corporate Services/Listing “Exchange Plaza” Bandra-Kurla Complex, BSE Limited Bandra (E), Phiroze Jeejeebhoy Tower, Mumbai-400051 Dalal Street, Fort, Mumbai-400001 NSE Symbol : APLAPOLLO Scrip Code : 533758 De
Slide 2: Q3FY25 Earnings presentation
Q3FY25 Earnings presentation
Slide 3: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Contents
Contents • Q3FY25 at glance • Financial Performance • Business Strategy • Demand Drivers • ESG Engagement APL APOLLO TUBES • Team APL Apollo 3
Slide 5: Q3FY25 at a Glance
Q3FY25 at a Glance 828k Ton ₹54.3 Bn ₹3.5Bn ₹4,173 Sales Volume Revenue EBITDA EBITDA/ton 37% YoY increase 30% YoY increase 24% YoY increase 10% YoY decline 9% QoQ increase 14% QoQ increase 150% QoQ increase 129% QoQ increase 56% ₹368 Mn ₹2.2Bn ₹2.7Bn Value Added Sales mix Interest Cost Net profit C
Slide 6: 9MFY25 at a Glance
9MFY25 at a Glance 2,308k Ton ₹151.8 Bn ₹7.9Bn ₹ 3,403 Sales Volume Revenue EBITDA EBITDA/ton 19% YoY increase 14% YoY increase 14% YoY decline 28% YoY decline 57% ₹1,010 Mn ₹4.6Bn ₹ 6.1Bn Value Added Sales mix Interest Cost Net profit Cash profit 9MFY24 was 57% 23% YoY increase 17% YoY decline 12%
Slide 7: Highest ever Quarterly Volume, EBITDA & PAT
Highest ever Quarterly Volume, EBITDA & PAT Profit & Loss (Rs Mn) Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Sales Volume (k Ton) 552 423 602 605 650 662 675 604 679 721 758 828 Revenue 42,147 34,386 39,692 43,271 44,311 45,449 46,304 41,778 47,657 49,743 47,
Slide 8: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES 7
Slide 9: De-commoditizing Product Portfolio (QoQ)
De-commoditizing Product Portfolio (QoQ) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Application Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (R
Slide 10: De-commoditizing Product Portfolio (YoY)
De-commoditizing Product Portfolio (YoY) Existing Proposed Product FY21 FY22 FY23 FY24 9MFY25 capacity Capacity** Application Sales Sales Sales Sales Sales Category Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton (KTon) (KTon) (%) (KTon) (Rs) (%) (
Slide 11: Growing Strength to Strength
Growing Strength to Strength Volume (K Ton) EBITDA (Rs Mn) 3,456 828 3,016 721 758 2,796 2,804 679 604 1,380 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 EBITDA/Ton (Rs) Net Profit (Rs Mn) 4,631 4,183 2,170 4,132 4,173 1,932 APL APOLLO TUBES 1,655 1,704 1,821 538 Q3FY24 Q4FY
Slide 12: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 34.6 28.9 24.8 29.2 29.5 23.5 26.5 22.2 20.7 16.4 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9MFY25 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 9 19.7 7 13.9 5 9.3 9.6 8.0 2 1 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9
Slide 13: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) Net Debt/EBITDA (x) 0.2 0.2 11.2 0.18 9.8 9.7 6.5 6.6 0.1 -0.0 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9MFY25 Net Debt/ Equity (x) Net Debt/ (cash) (Rs Bn) APL APOLLO TUBES 0.1 2.4 0.1 0.1 2.0 1.6 Net 1.0 cash 0.0 Net cash -0.0 -0.2 FY2
Slide 14: Growing Strength to Strength
Growing Strength to Strength Operating Cashflow to EBITDA (%) Capex to Op. Cash flow (%) 90 87 144 78 95 94 59 69 63 29 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9MFY25 FCF (Rs Bn) Du-Pont ROE (%) APL APOLLO TUBES 5 28 6.1 4 21 3 14 2 3.6 1 7 0.4 0.1 0 0 FY20 FY21 FY22 FY23 FY24 9MFY25 -0.6 Net
Slide 15: Cash Flow Bridge (Rs Mn)
Cash Flow Bridge (Rs Mn) 6,640 -5,210 -300 -2,354 185 -1,039 APL APOLLO TUBES Net cash in FY24 Op Cash flow Capex Investments Dividend & others Net debt in 9MFY25 Business continues to Capex being funded from generate strong Net cash balance sheet internal cash flows operational cash flows 14
Slide 16: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rs Mn) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 9MFY24 9MFY25 Sales Volume (K Ton) 604 679 721 758 828 1,940 2,308 Net Revenue 41,778 47,657 49,743 47,739 54,327 1,33,531 1,51,809 Raw Material Costs 35,854 41,326 42,697 42,419 46,623 1,14,846 1,31,739 Employee
Slide 17: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow (Consol) Balance Sheet - Assets (Rs mn) FY24 9MFY25 Cashflow Statement (Rs mn) FY24 9MFY25 Cash & Bank Balance 11,430 5,471 EBITDA 11,922 7,853 Receivables 1,391 1,523 Change in receivables -1 -132 Inventories 16,379 14,672 Change in inventory -1,595 1,708 Other current ass
Slide 18: Demand Drivers
DEMAND DRIVERS 17
Slide 19: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix 4% 13% Housing Commercial buildings 19% Infrastructure 64% Others APL APOLLO TUBES *As per Q1FY25 revenue 18
Slide 20: India Structural Steel Tube market potential
India Structural Steel Tube market potential Structural steel tubes as % of steel market Crude steel production in India (Mn Ton) Structural steel tubes in India (Mn Ton) (FY24) 17.3 11 210 9 9 8 8 7 139 6.5 9.0 Global Europe LAT-AM Japan Middle North India FY24 2030E FY24 2030E East America Structu
Slide 21: New proposed plants for higher market penetration
New proposed plants for higher market penetration Location for Incremental Market Capacity Target Market Greenfield Plants opportunity 1. Gorakhpur 110,000 Ton Eastern UP, Bihar and 1 Eastern UP Nepal 2 West Bengal, 2. Siliguri 1.5 Mn Ton 200,000 Ton Jharkhand, 7 Sister State West Bengal and Bhutan
Slide 22: Solar structure opportunity for structural tubes
Solar structure opportunity for structural tubes Annual solar Annual APL Apollo Products installation by Segments Products market Solar structure opportunity 2030 size by 2030 Market opportunity 33.3GW for APL Apollo 830,000 Ton Solar power products by 2030 1. Residential 14.5GW Tubes 360,000 Ton Ro
Slide 23: Steel Tube usage in housing/commercial buildings
Steel Tube usage in housing/commercial buildings Housing Commercial/Infrastructure Cost (per sq ft in Homes) Cost (per sq ft in Commercial/Infra) 125 523 50 41 43 35 23 125 23 50 35 43 Steel Tubes PVC pipes Tiles Wires Cement Paints Steel PVC pipes Tiles Wires Cement Paints tubes Steel Tube applicat
Slide 24: Applications for Heavy Structural Steel Tubes
Applications for Heavy Structural Steel Tubes ● High Rise Buildings ○ Hospitals, Housing, Schools, Courts, Hotels/Malls/Offices ● Warehouses/Cold Storage/Food Parks 50 50mn sq. ft. 220,000 ton ● Factory Buildings/Process Structures projects Visibility heavy structural steel tubes ● Aviation Hangers
Slide 25: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 24
Slide 26: ESG- DJSI Scoring
ESG- DJSI Scoring DJSI percentile 86 80 56 2021 2022 2023 Score percentile (%) APL APOLLO TUBES APL APOLLO SCORED 86TH PERCENTILE IN 2023 We expect better score next year as we are improving on ESG parameters 25
Slide 27: Scope & emissions reduction by 25% by 2030; Net Zero by 2050
Scope 1 & 2 emissions reduction by 25% by 2030; Net Zero by 2050 Scope of Purchased goods Planned Initiatives: and services expanded to • RE installations in GHG Inventory include raw materials ABPL plant calculated for (Steel Coils) • RE expansions in Scope 1, 2, 3 and New Raipur New Raipur and set
Slide 28: Scope & emissions reduction by 25% by 2030; Net Zero by 2050
Scope 1 & 2 emissions reduction by 25% by 2030; Net Zero by 2050 Renewable Electricity Consumption (GJ) Trend of GHG Emissions over past 3 years 732,067 Grid Electricity Scope 1 (MTCO2e) Scope 2 (MTCO2e) Scope 3 (MTCO2e) Renewable Electricity FY 2021-22 24,486 66,349a 42,661 FY 2022-23 29,260 59,436
Slide 29: Commitment and achievements
Commitment and achievements Commitments Achievements ▪ Committed to reducing Scope 1&2 emissions by 25% by 2030 E ▪ Introduced new, environmentally friendly products E ▪ Committed to set near term and Net Zero targets by 2050 E ▪ All plants have access to green energy, 2 plants have more than 85% de
Slide 30: Front runner for Steel for Green
Front runner for Steel for Green ▪ APL Apollo is the 1st Company to innovate readymade Doorframe, Fence, Plank and Hand rails as Steel for Green Concept which replaced conventional wood application in building construction ▪ Our Products are saving 250,000 trees every year, going ahead we will be sa
Slide 31: Steel Buildings = Decarbonization
Steel Buildings = Decarbonization ● Construction sector contributes 30% of direct and indirect Co2 emissions Steel Structure - RCC Structure ● Structural steel is preferred for steel buildings because steel is ○ Infinitely recyclable ○ Easy to pre-fabricate ○ High volume to weight ratio APL APOLLO T
Slide 32: Financial Priorities under Strong Governance
Financial Priorities under Strong Governance Growth Earnings Drive sustainable EPS growth Profitable Organic Growth Attain earnings objectives across Commitment to R&D and Talent economic cycles Innovate products to replace conventional construction methods APL APOLLO TUBES Capital Allocation Drive
Slide 33: Board of Directors
Board of Directors Sanjay Gupta Vinay Gupta Rahul Gupta Chairman & Managing Director Director Director More than 20 years of industry A promising entrepreneur with Steel Industry veteran with 3 decades experience in the an experience of around 5 manufacturing and trading years in Steel Tubes of expe
Slide 34: Our Leadership
Our Leadership Vinay Gupta Rahul Gupta Deepak Goyal Anubhav Gupta Director Director Director-Operations Chief Strategy Officer Sanjay Gupta Chairman & Managing Director APL APOLLO TUBES Ravindra Tiwari Chetan Khandelwal CK Singh Vaibhaav Sharma Chief Sales & Chief Financial Chief Operating Officer M
Slide 35: Thank You
Thank You For further information, please contact: Anubhav Gupta Deepak Goyal APL Apollo Tubes Ltd APL Apollo Tubes Ltd Tel: +91 120 691 8000 Tel: +91 120 691 8000 Email: [email protected] Email: [email protected] APL APOLLO TUBES Shubham Mittal APL Apollo Tubes Ltd Tel: +91 120 691 8000
Slide 36: Press release: Q3FY25 Financial Performance
APL Apollo Tubes Limited Regd. Office: 37, Hargobind Enclave, Vikas Marg, Delhi – 110 092 Corp. Office: SG Centre, Plot No. 37-C, Block-B, Sector-132, Noida, Distt. Gautam Budh Nagar, U.P.-201304 Q3FY25 Financial Performance • Sales volume of 828,200 Ton (+37% YoY, +9% QoQ) • EBITDA of Rs3.5bn (+24%
Slide 37: About APL Apollo Tubes Limited
About APL Apollo Tubes Limited APL Apollo Tubes Limited (APL Apollo) BSE: 533758, NSE: APLAPOLLO is India’s leading structural steel tube manufacturer. Headquartered at Delhi NCR, the Company operates 11 manufacturing facilities with a total capacity of 4.3 Mn Ton. It has a pan-India presence with 1