APL Apollo Tubes Q1 Review - Margin Beat; Focus On Value Added Products Continues: IDBI Capital
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
APL Apollo Tubes Ltd. reported strong improvement in profitability for Q1 FY22; its Ebitda was a strong beat to our forecast.
The company’s Ebitda/tonne jumped to Rs 6,825 (up 129% YoY, up 44% QoQ) driven by-
better product mix and
higher contribution from high-margin Apollo Tricoat products.
Despite 14% QoQ fall in volumes, APL Apollo’s Ebitda jumped 23% QoQ to Rs 2.5 billion and net profit was higher by 24% QoQ to Rs 1.5 billion.
We raise our margin estimates for FY22/FY23 given strong margin improvement in Q1 FY22 and anticipated higher demand.
Overall our FY22/FY23 Ebitda estimates are higher by 10%/12%, respectively.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.