APL Apollo Tubes Ltd's Q3FY19 consolidated net profit declines 64% yoy to Rs13cr

The company’s consolidated revenue stood at Rs1,691cr, up 28.7% yoy and flat qoq.

Feb 14, 2019 09:02 IST India Infoline Research Team

APL Apollo Tubes Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,691 28.7
EBITDA 59 [33.0]
EBITDA Margin (%) 3.5 [323]
Net Profit (adjusted) 12.9 [64.2]
***EBITDA margin change is bps

APL Apollo reported fall in net profit in Q3FY19 due to a sharp rise in raw material and employee costs. Revenue grew by 28.7% yoy to Rs1,691cr. EBITDA stood at Rs59cr, down 33% yoy. EBIDTA margin fell by 323bps yoy to 3.5%. Net Profit stood at Rs12.9cr for Q3FY19, down 64.2% yoy.
  • Sales volumes rose by 12% yoy to 3.15 lakh tonnes in Q3FY19. Sales volumes for 9MFY19 stood at 9.21 lakh tonnes, up 11% yoy.
  • Breakdown of sales volumes for Q3FY19 stood at:
    • Hollow Sections             184k tonnes (up 17% yoy)
    • Black Round pipes        45k tonnes (up 17% yoy)
    • Pre-Galvanised tubes   67k tonnes (up 13% yoy)
    • Galvanised tubes          19k tonnes (down 29% yoy)
  • Realizations for the various segments for Q3FY19 stood at:
    • Hollow Sections             Rs50,226 per tonne (up 17% yoy)
    • Black Round pipes        Rs48,740 per tonne (up 16% yoy)
    • Pre-Galvanised tubes   Rs58,242 per tonne (up 13% yoy)
    • Galvanised tubes          Rs57,315 per tonne (up 11% yoy)
  • Sales break down for the various segments for Q3FY19 stood at:
    • Hollow Sections            55%
    • Black Round pipes        14%
    • Pre-Galvanised tubes   24%
    • Galvanised tubes          7%
  • Gross margin for the quarter stood at 9.8%, down 489bps yoy.
  • EBITDA per tonne for the quarter stood at Rs1,880 per tonne, down 40% yoy. The company attributed this fall in profitability primarily to an inventory loss (owing to the sharp fall in steel prices) amounting to Rs41.7cr. A 30% yoy increase in employee costs due to the ongoing ramp up also contributed to the reduction in margins for Q3FY19.

Technical View:

APL Apollo Tubes Ltd is currently trading at Rs. 1,120, up by 45.6 points or 4.24% from its previous closing of Rs. 1,074.40 on the BSE.
The scrip opened at Rs. 1,068 and has touched a high and low of Rs. 1,120 and Rs. 1,056 respectively. So far 14,250 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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