APL Apollo Tubes Q4 Sales Surge 12%

1 Apr 2024 , 03:43 PM

Following the release of the company’s quarterly business report during the day on Monday, shares of APL Apollo Tubes Ltd. gave up its gains and began to trade lower. The company recorded its greatest quarterly sales volume to date in the fourth quarter of the previous fiscal year (Q4FY24), with 6.78 lakh tonne of sales.

The company recorded sales volume of 26.18 lakh tonne for FY24, a 15% YoY growth. “The recently operational New Raipur and Dubai plants provided help for this. Because several lines had recently been put into service, the New Raipur plant’s capacity utilisation was nearly 50% in Q4FY24, according to an exchange filing.

The first findings from the Dubai plant are promising, according to APL Apollo Tubes, and the company has received positive feedback from international steel tube distributors about its products.

According to the corporation, the value-added segment’s contribution rose from 56% in FY23 to 58% in FY24. It stated that APL Apollo’s de-commoditization strategy is still in place.

According to an update from the firm, APL Apollo’s sales volume has climbed by 22% CAGR (FY22–24) during the last two years thanks to the acceptance of recently announced innovative goods.

“We expect expansion of construction led demand in the country post general elections to further boost APL Apollo’s sales volume,” said the statement.

After the business update, APL Apollo Tubes’ shares fell 1.3% to ₹1,489.95 on Monday, from ₹1,510, the day’s high. In the prior trading session on Thursday, the stock had finished at ₹1,488.

APL Apollo Tubes’ stock has dropped more than 2% so far in 2024, while it has dropped by almost 9% in the previous six months.

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