India: APL Apollo Tubes Sales Volumes Rise by 14% in Q1 FY19

APL Apollo Tubes Limited, one of the largest producers of ERW Steel pipes in India, has released its operational and financial performance for Q1 FY19 quarter.

As per the press release, the company’s sales & net profit rose sharply in Q1 FY19 as against Q1 FY18. Below are key performance highlights as per recent press release.

1) APL Apollo Tubes sales volumes surged by 14% to 3.02 lakh tons in Q1 FY19 compared to 2.65 lakh tons in Q1 FY18. While sales volume almost flattish on Q-o-Q basis.

2) In Q1 FY19, company’s large share of sales volume was contributed by Hollow section (55%), followed by Pre-Galvanized Tubes (22%), black round pipes (15%) & Galvanized tubes (8%).

3) Company’s net revenue sharply rise by 45% to 1,677 crore in Q1 FY19 Vs Q1 FY18.

4) Company’s net profit stood at 47 crores in Q1 FY19, increased by 21% compared with 38.9 crores in Q1 FY18.

In report the company claims that, the rise in sales volumes is due to uptick in demand and consumption across sectors. Further, increased contribution from Hollow sections, including DFT products, also assisted the overall performance.

Key Developments:

1) Company is one the verge of completion of two DFT lines in an existing facilities of Sikandarabad and Hosur.

2) With the completion of all DFT lines along with various business initiatives such as increased branding activities, cost- effective measures and strong focus towards innovation should enable the company to emerge as one of the largest steel tubes manufacturers in the world.

3) After the completion of all major facilities, company is aiming to a total installed capacity of 2 MnT.

The company has an existing capacity of about 1.8 MnT in six manufacturing units located in Sikandarabad (3 units), Bangalore, Hosur and Murabad. The company is largely making four major products i.e. Hollow Sections, Black pipes, Galvanized Pipes & Pre- galvanized pipes.

APL Apollo Tubes Quarterly Operational Performance

Source: Company Website, SteelMint Research
Fig: in Lakh Tons