APL Apollo Tubes Q4 Review - Margin Beat; Focus On Value Added Products: IDBI Capital

Apollo Fabritech - A square and rectangular black hollow sections with steel grade YST 310 and YST 355 as it is used in large projects manufactured by APL Apollo Tubes Ltd. (Source: Company website).

APL Apollo Tubes Q4 Review - Margin Beat; Focus On Value Added Products: IDBI Capital

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IDBI Capital Report

APL Apollo Tubes Ltd. reported better than expected profitability for Q4 FY21 as its Ebitda was 19% higher than our estimate.

Ebitda/tonne at Rs 4,742 (up 59% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/ tubes.

The company’s Ebitda jumped 72% YoY to Rs 2.0 billion.

The second wave of Covid-19 has started to impact volumes.

Hence, we cut our volumes estimates for FY22; nevertheless, we raise our margin estimates for FY22/FY23 as we expect margins of H2 FY21 to sustain.

Overall our FY22/FY23 Ebitda estimates are higher by 3%/7%, respectively.

Click on the attachment to read the full report:

IDBI Capital APL Apollo Tubes Q4FY21 Result Update.pdf

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