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

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

<div class="paragraphs"><p>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).</p></div>
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).

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 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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