For nine months ended Dec'20 net sales rose 10% to Rs 343.87 crore. Operating margins increased 230 bps 13.7% leading a 32% rise in operating profits to Rs 47.2 crore. Interest cost fell 16% to Rs 3.47 crore while depreciation rose 33% to Rs 11.81 crore resulting 25% increase in PBT to Rs 37.85 crore. Tax provision increased 26% to Rs 10.01 crore. PAT was up 25% to Rs 27.84 crore.

Commenting on the Company's performance for Q3 & 9M FY2021, Mr. Sameer Gupta, Managing Director, Apollo Pipes said, "We have reported an encouraging performance during the quarter led by a robust uptick in consumption in the domestic markets. During the quarter, our sales volume grew by 7% to 11,445 MTPA, driven by a healthy contribution from the cPVC, HDPE pipe and value-added product segment of Fittings. Cost-optimization measures and improved contribution from the high-margin fittings segment further resulted in a better gross margin performance during the quarter.

From an operational standpoint, our existing manufacturing facilities at Dadri, Ahmedabad and Tumkur are operating at steady utilization levels and we remain confident of further improving it to the optimal levels in the quarters ahead. I am also happy to share that the plan to operationalize our Greenfield facility at Raipur is advancing well and we remain on track to commission this facility by March 2021. We are also progressing on our brownfield expansion plans at the three plants of Dadri, Ahmedabad and Tumkur. In addition, our latest range of Water Storage Tanks are seeing strong acceptance in the domestic market and accordingly, we have already doubled the capacity for this product at our plant in Sikandarabad (Dadri) and also commissioned 1 unit at Tumkur. So, on the whole, the planned capacity additions should enable us to deliver improved sales momentum, going forward.

Looking ahead, the various pro-growth measures undertaken by the Government, especially in the rural, infrastructure and agricultural space should lead to better demand and consumption of our products in the domestic market over the medium-to-longer term. We are confident that once the macro-situation normalizes, we should be able to deliver strong and sustainable growth, going forward."

Key Developments

• 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 are also progressing as per schedule

• On the whole, the Company is aiming towards a healthy capacity upgradation 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 this product, 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.

Currently the shares are quoting at around Rs 733 at BSE.