Muted earnings as volume growth offset by margin contraction

Company

13 Aug 2024 | 5 Min Read

APL Apollo Tubes reported healthy sales volume of 721kmt in 1QFY25.

EBITDA/MT fell ~10% YoY to ~INR4,183 due to high operational expenses.

Company lowered its volume guidance to 3.2mtpa in FY25.

APAT expects to match EBITDA/MT of FY24 and aims for 20-25% volume growth in FY26.

The company targets to reach 5 mmt by FY27 and expects net debt to be near zero by the end of FY25.

The company is confident of gaining market share from secondary steel manufacturers.