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] |
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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.
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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)
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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)
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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.
