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APL Apollo Tubes Q3 Review - Margin Strong Despite Weak Volumes: IDBI Capital

APL Apollo Tubes Q3 Review - Margin Strong Despite Weak Volumes: IDBI Capital

<div class="paragraphs"><p>Steel pipes sit stacked.&nbsp; (Photographer: Loren Elliott/Bloomberg)</p></div>
Steel pipes sit stacked.  (Photographer: Loren Elliott/Bloomberg)

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IDBI Capital Report

APL Apollo Tubes Ltd.'s Q3 FY22 Ebitda was slightly weaker than our forecast. Ebitda stood at Rs 2,023 million (4% below our forecast). Ebitda/tonne expanded by 5% YoY to Rs 5,023, although sequentially it fell 3%.

Volumes fell sharply to 402 kilo tonne (down 17% YoY, down 6% QoQ).

Nevertheless, Ebitda/tonne over Rs 5,000 is likely to be sustainable over the coming one year in our view; APL Apollo Tubes targets over 20% compound annual growth rate volume growth over FY22-25 backed by 1.5 million tonne capacity expansion at Raipur and it aims to be net debt free after by the end of FY23.

Click on the attachment to read the full report:

IDBI Capital APL Apollo Tubes Q3FY22 Result Update.pdf

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