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Apollo Pipes
standalone net sales increased 48.75% to Rs 137.61 crore in Q1FY22 compared to
Q1FY21. Operating profit margin has
jumped from 6.69% to 12.67%, leading to 181.58% rise in operating profit to Rs
17.43 crore. Raw material cost as a % of
total sales (net of stock adjustments) decreased from 76.51% to 72.14%. Purchase of finished goods cost fell from
0.66% to 0.62%. Employee cost increased
from 5.98% to 6.05%. Other expenses
fell from 9.71% to 9.01%. Other income
fell 33.18% to Rs 1.43 crore. Provision
for interest fell 49.76% to Rs 1.06 crore.
Provision for depreciation rose 70.75% to Rs 5.72 crore. Profit before tax grew 320.91% to Rs 12.08
crore. Provision for tax was expense of
Rs 3.33 crore, compared to Rs 0.87 crore.
Effective tax rate was 27.57% compared to 30.31%. Profit after tax rose
337.50% to Rs 8.75 crore.
Commenting on the Company’s performance for Q1FY22, Mr.
Sameer Gupta, Managing Director, Apollo Pipes said,
“We have reported a
linear performance during the quarter due to country wide Pandemic and sluggish
domestic demand. During the quarter, our quarterly sales volume declined
marginally by 2% YoY to 10,402 MTPA. However, our Cost-optimization measures
and improved contribution from the high-margin fittings segment 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. 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 Sikandrabad (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.”
Full year results analysis
Net sales (including
other operating income) of Apollo Pipes has increased 26.99% to Rs 518.07
crore. Operating profit margin has
jumped from 11.36% to 14.33%, leading to 60.14% rise in operating profit to Rs
74.24 crore. Raw material cost as a % of
total sales (net of stock adjustments) decreased from 70.58% to 68.58%. Purchase of finished goods cost rose from
1.14% to 1.20%. Employee cost decreased
from 6.26% to 5.66%. Other expenses
fell from 11.02% to 10.21%.
Other income fell
16.98% to Rs 8.41 crore. Provision for
interest fell 28.17% to Rs 4.36 crore.
Loan funds declined from Rs 77.65 crore as of 31 March 2020 to Rs 52.31
crore as of 31 March 2021. Inventories
declined from Rs 82.44 crore as of 31 March 2020 to Rs 78.22 crore as of 31
March 2021. Sundry debtors were higher
at Rs 62.69 crore as of 31 March 2021 compared to Rs 59.40 crore as of 31 March
2020. Cash and bank balance declined
from Rs 127.99 crore as of 31 March 2020 to Rs 72.28 crore as of 31 March
2021. Investments rose to Rs 0.47 crore
as of 31 March 2021 from Rs 0.37 crore as of 31 March 2020.
Provision for
depreciation rose 38.74% to Rs 17.62 crore.
Fixed assets increased to Rs 207.36 crore as of 31 March 2021 from Rs
162.91 crore as of 31 March 2020.
Intangible assets declined from Rs 21.69 crore to Rs 21.33 crore.
Profit before tax
grew 60.84% to Rs 60.67 crore. Provision
for tax was expense of Rs 16.2 crore, compared to Rs 9.19 crore. Effective tax rate was 26.70% compared to
24.36%.
Profit after tax rose
55.87% to Rs 44.47 crore.
Promoters’ stake was
52.03% as of 31 March 2021 compared to 47.11% as of 31 March 2020.
Cash flow from
operating activities increased to Rs 31.44 crore for year ended March 2021 from
Rs 12.43 crore for year ended March 2020.
Cash flow used in acquiring fixed assets during the year ended March
2021 stood at Rs 84.59 crore, compared to Rs 40.63 crore during the year ended
March 2020.
Key Developments
§ The company is
on-track to achieve a production capacity of 125,000 MTPA. All Greenfield and
Brownfield manufacturing expansions of the company are on track.
§ The company is
working on Greenfield expansion at Raipur, Chattisgarh with initial production
capacity of 7,200 MTPA
§ Expansion of
production unit located at Dadri, Uttar Pradesh, which will enhance the
existing production capacity.
§ 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
Currently the shares
are quoting at around Rs 1197 at BSE.
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Apollo Pipes : Standalone Results
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Particulars
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2106 (03)
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2006 (03)
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Var.(%)
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2103 (12)
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2003 (12)
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Var.(%)
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Net Sales
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137.61
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92.51
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49
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518.07
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407.96
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27
|
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OPM (%)
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12.7
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6.7
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14.3
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11.4
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OP
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17.43
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6.19
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182
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74.24
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46.36
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60
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Other Inc.
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1.43
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2.14
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-33
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8.41
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10.13
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-17
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PBIDT
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18.86
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8.33
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126
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82.65
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56.49
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46
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Interest
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1.06
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2.11
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-50
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4.36
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6.07
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-28
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PBDT
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17.8
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6.22
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186
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78.29
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50.42
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55
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Depreciation
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5.72
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3.35
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71
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17.62
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12.7
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39
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PBT
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12.08
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2.87
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321
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60.67
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37.72
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61
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EO Income
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0
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0
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-
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0
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0
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-
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PBT after EO
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12.08
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2.87
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321
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60.67
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37.72
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61
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Taxation
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3.33
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0.87
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283
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16.2
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9.19
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76
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PAT
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8.75
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2
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338
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44.47
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28.53
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56
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EPS (Rs)*
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#
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#
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33.9
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21.8
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Notes
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* EPS is on current equity of Rs 13.11 crore, Face value of Rs
10, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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