 |
Analyst Meet / AGM
21-Jan-21
|
|
|
|
|
|
|
|
Conference Call
|
|
|
|
Apollo Pipes
|
|
Feels sustainable Ebitda margins would be around 12-13%
|
|
|
|
|
|
Apollo Pipes held a conference call on January 18, 2020 to discuss the results for the quarter ended Dec20 and way forward. Mr. Sameer Gupta – Managing Director and Mr. Ajay Jain – CFO of the company addressed the call.
Highlights of the Concall
- The company has reported an encouraging performance during the quarter led by strong recovery and robust consumption across markets.
- Total sales volume has marked a steady improvement of 7% YoY to 11,445 metric tonne per annum (mtpa) from 10,712 mtpa driven by a healthy contribution from the cPVC, HDPE pipe and value-added product segment of Fittings. Sales Volume was lower by 2% in 9MFY21 to 34,346 mtpa from 34,971 mtpa in 9MFY20.
- Cost-optimization measures and improved contribution from the high-margin fittings segment further resulted in a better gross margin performance during the quarter.
- The company mentioned that there were notable price increases in raw material prices material during the period due to which there was one time inventory gain. This has resulted in sharp increase in Ebitda margins, which stood at 20% in Q3FY21 as against 11% in Q3FY20. However, the company anticipates Ebitda margins to normalize going forward.
- The company feels sustainable Ebitda margins for the company would be around 12-13%.
- PVC prices has increased sharply because of logistic issues of COVID going across the world and in India almost 50 or 60% of the demand for PVC product is catered to the imports.
- The company is currently purchasing around 10-20% of its total raw material purchases from domestic markets and expects it to increase to 30-40%
- Capacity utilization is currently around 50-55%.
- The Greenfield facility at Raipur is marking steady improvement and the company remains on track to fully operationalise the plant by March 2021. The facility, with a proposed installed capacity of 7,200 MTPA, is strategically located and will help boost volumes in high-potential domestic markets in Central and East India.
- In addition, the company is undertaking staggered brownfield expansions at all of its existing facilities across the country, which is also progressing as per schedule.
- The company is aiming towards a healthy capacity up gradation and is on-track to achieve a total production capacity exceeding 100,000 mtpa by March 2021.
- The company's latest launched product – water storage tanks has seen strong acceptance in the domestic market and the product contributed to improved sales during the quarter.
- In order to address the increased demand for water tanks, the company has already doubled the capacity for this product line at its current manufacturing facility at Sikandarabad (Dadri) in November 2020 and 1 Unit at Tumkur location.
- The company expects to generate revenues of around Rs 60-70 crore from the tank business in FY22.
- Net cash position stood healthy at Rs 29 crore
- The company gets margin of around 20-25% from its value added products and margin of 5-10% in PVC pipes.
- The company expects that around 50-60% of its revenues would come from PC pipes, 5-10% from other products and fittings would be around 25-30%.
|
|
|
|
Previous News |
Apollo Pipes fixes record date for bonus issue
(
Market Beat
-
Reports
16-Nov-21
12:58
)
|
|
|
Apollo Pipes
(
Results
-
Analysis
18-Jan-21
19:31
)
|
|
|
Apollo Pipes to convene board meeting
(
Corporate News
-
02-May-23
15:42
)
|
|
|
Board of Apollo Pipes approves increase in authorized share capital
(
Corporate News
-
23-Oct-21
09:55
)
|
|
|
Board of Apollo Pipes approves allotment of 2.62 cr bonus equity shares
(
Corporate News
-
06-Dec-21
14:37
)
|
|
|
Apollo Pipes allots 25,000 equity shares on conversion of warrants
(
Corporate News
-
24-Jan-24
10:45
)
|
|
|
Apollo Pipes to discuss results
(
Corporate News
-
19-Jul-23
11:06
)
|
|
|
Apollo Pipes standalone net profit rises 11.70% in the June 2019 quarter
(
Results
-
Announcements
13-Aug-19
17:27
)
|
|
|
Apollo Pipes
(
Analyst Meet / AGM
-
Conference Call
06-May-21
15:37
)
|
|
|
Apollo Pipes receives credit ratings from ICRA
(
Corporate News
-
07-Apr-21
13:35
)
|
|
|
Apollo Pipes to table results
(
Corporate News
-
09-Jan-21
17:58
)
|
|
|
|
|
|
Other Stories |
|
|
|
|
|
|
|
|
|
|
|
|
|