APL Apollo Tubes Ltd's Q4FY18 consolidated net profit declines 10.8% yoy to Rs44.5cr

The company’s consolidated revenue stood at Rs1,519cr, up 26.1% yoy and 15.6% qoq

May 25, 2018 10:05 IST India Infoline Research Team

APL Apollo Tubes Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,519 26.1
EBITDA 102.7 19.7
EBITDA Margin (%) 6.8 [36]
Net Profit (adjusted) 44.5 [10.8]
***EBITDA margin change is bps
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Reco. Price

2142

Last updated on

07-May-2018


APL Apollo reported a decline in net profit due to higher raw material costs and tax rate in FY18. Revenue grew by 26.1% yoy to Rs1,519cr. EBITDA stood at Rs102.7cr, up 19.7% yoy. EBIDTA margin fell by 36bps yoy to 6.8%. Net Profit stood at Rs44.5cr for Q4FY18, down 10.8% yoy.
  • Sales volumes for Q4FY18 stood at 3.01 lakh tonnes, up 28% yoy. Sales for FY18 stood at 11.3 lakh tonnes, up 21% yoy.
  • Breakdown of sales volumes for Q4FY18 stood at:
    • Hollow Sections             164k tonnes (up 35% yoy)
    • Black Round pipes        47.4k tonnes (up 31% yoy)
    • Pre-Galvanised tubes   62.5k tonnes (up 32% yoy)
    • Galvanised tubes          26.7k tonnes (down 7% yoy)
  • The company has commissioned 6 lines for Direct Forming Technology (DFT). The last 2 lines will be installed by end of 1HFY19. After the operationalization of all 8 DFT lines, the company is aiming at a total installed capacity of 2 million MTPA.
  • Gross Margins for Q4FY18 stood at 12.5% (down 1,162bps yoy, down 215bps qoq) due to sharp increase in raw material costs for the quarter. EBITDA per tonne for Q4FY18 and FY18 stood at Rs3,411 per tonne (down 7% yoy) and Rs3,283 per tonne (down 8% yoy) respectively.
  • Gross Margins for FY18 stood at 16.9% (down 928bps yoy).
  • EBITDA Margins fell by 82bps yoy to 6.8% for FY18.
  • Tax Rate for FY18 stood at 34.5% against a tax rate of 29.6% in FY17.

Technical View:

APL Apollo Tubes Ltd is currently trading at Rs. 1,881, down by 12.9 points or 0.68% from its previous closing of Rs. 1,893.90 on the BSE.
The scrip opened at Rs. 1,900 and has touched a high and low of Rs. 1,909 and Rs. 1,881 respectively. So far 17,571 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.


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