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.
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