APL Apollo Tubes Q3 Review - Margin Beat; Strong Volume Growth Ahead: IDBI Capital
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IDBI Capital Report
APL Apollo Tubes Ltd. reported better than expected profitability for Q3 FY21 as its Ebitda was 27% higher than our estimate.
The Ebitda/tonne at Rs 4,780 (up 43% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/ tubes. The company’s Ebitda jumped 45% YoY to Rs 2.3 billion.
Higher operating cash flow for nine-months FY21 at Rs 8.5 billion (Rs 5.1 billion in FY20) and fall in net working capital days to eight days by Q3 FY21 led to net debt falling to Rs 2 billion by Q3 FY21 from Rs 8 billion in FY20.
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