The company registered a sales volume of 400616 tonne in Q4FY20, lower by 4% Y-o-Y. Apollo Structural (Structural steel construction material) sales volume fell 21% to 188000 tonne while Apollo Z (Galvanized structural steel construction material) sales volume rose 10% to 95000 tonne. Apollo Build (Galvanized products for industrial and agricultural uses) sales volume fell 16% to 25000 tonne. Apollo Standard (Construction material, Industrial, agriculture) sales volume fell 16% to 54000 tonne. Apollo Tricoat (Home Improvement applications) sales volume was 38000 tonne.

Other income grew 193% to Rs 8.33 crore. As interest cost fell 17% to Rs 24.09 crore backed by debt reduction and depreciation increased 48% to Rs 25.49 crore due to capacity expansion, PBT went down 18% to Rs 78.61 crore.

Tax provision was down 43% to Rs 19.11 crore (effective tax rate was down 1090 bps to 24.3%) after which PAT fell 4% to Rs 59.5 crore. Further considering MI and prior period adjustments net profit fell 8% to Rs 56.82 crore.

The Group had closed all its manufacturing plants and offices with effect from March 24, 2020 following countrywide lockdown due to Covid- 19. Subsequent to the year end, the company had resumed its operations at its Raipur plant with effect from April 22, 2020. All the remaining plants and office of the Group have resumed operations gradually over a period of time adhering to the safety norms prescribed by the Government of India.

FY20 results

For 12 months ended Mar20, net sales were up by 8% to Rs 7723.23 crore.

The company registered a sales volume of 1643632 tonne in FY20, higher by 23% Y-o-Y. Apollo Structural (Structural steel construction material) sales volume rose 14% to 870000 tonne while Apollo Z (Galvanized structural steel construction material) sales volume rose 18% to 283000 tonne. Apollo Build (Galvanized products for industrial and agricultural uses) sales volume rose 8% to 99000 tonne. Apollo Standard (Construction material, Industrial, agriculture) sales volume rose 9% to 216000 tonne. Apollo Tricoat (Home Improvement applications) sales volume was 123000 tonne.

OPM was up by 70 bps to 6.2% resulting in a 22% increase in OP to Rs 477.34 crore. Other income was up by 89% to Rs 22.18 crore. Interest cost was down by 5% to Rs 107.27 crore while depreciation was up 49% to Rs 95.91 crore. This resulted in a 31% growth in PBT to Rs 296.34 crore. Tax provision was down 47% to Rs 41.63 crore (effective tax rate was down 2060 bps to 14%) after which PAT grew by 72% to Rs 254.71 crore. Further considering MI and prior period adjustments net profit rose 61% to Rs 237.97 crore.

Commenting on the Company's performance for Q4 & FY2020, Mr. Sanjay Gupta, Chairman, APL Apollo, said,

APL Apollo Tubes Ltd has created its dominant leadership in structural steel tube industry. The Q4FY20 performance was impacted due to disruption from COVID-19. We lost full 10 days of production in March 2020 apart from weak economic sentiments since our country got its first COVID-19 case. The company maintained its EBITDA spreads for the full-year despite soft steel prices. Our continuous focus on working capital efficiency resulted in strong operating cash flows and comfortable leverage ratios. Now that the plants are operational post lockdown, we look forward to the normalized business at the earliest. Our dominant position in business space, our core strengths, our robust business model and our strong financial position give us the confidence to rebound and emerge stronger from the ongoing crisis.

Q1FY21 production

The company registered sales volume of 238311 tonne in Q1FY21 (61% of Q1FY20 volume and 59% of Q4FY20 volume). Apollo Structural (Structural steel construction material) sales volume fell 49% YoY and 40% QoQ to 112000 tonne while Apollo Z (Galvanized structural steel construction material) sales volume fell 36% YoY and 40% QoQ to 57000 tonne. Apollo Build (Galvanized products for industrial and agricultural uses) sales volume fell 52% YoY and 48% QoQ to to 13000 tonne. Apollo Standard (Construction material, Industrial, agriculture) sales volume fell 56% YoY and QoQ as well to 24000 tonne. Apollo Tricoat (Home Improvement applications) sales volume was 32000 tonne.

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