Q4 2024 APL Apollo Tubes Ltd Earnings Call Transcript
Key Points
- APL Apollo Tubes Ltd (BOM:533758) achieved a 15% growth in volume, EBITDA, and PAT for FY24 despite challenging market conditions.
- The company expanded its capacity to 4 million tonnes as of March 2024, with plans to reach 5 million tonnes with an additional INR600 crores investment.
- APL Apollo Tubes Ltd (BOM:533758) closed FY24 with a net cash balance sheet for the first time, indicating strong financial health.
- The company has maintained operating cash flow EBITDA above 90% and achieved significant working capital efficiencies.
- APL Apollo Tubes Ltd (BOM:533758) improved its ESG performance, increasing its Dow Jones Sustainability Index percentile to 86 and its overall environment, social, and governance score to 42.
- The company fell short of its sales volume target for FY24, achieving 2.6 million tonnes instead of the projected 3 million tonnes.
- High interest rates, inflation, and a slowdown in construction activity negatively impacted the company's performance.
- Delays in ramping up the Raipur and Dubai plants contributed to a 100,000-tonne volume loss.
- Steel price deflation led to a marginal impact on channel destocking and required the company to offer discounts, affecting EBITDA per tonne.
- The company faced a significant drop in EBITDA per tonne in Q4 due to aggressive discounting and a higher mix of lower-margin products.
Ladies and gentlemen, good day, and welcome to APL Apollo Tubes Limited Q4 FY24 earnings conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ravi Sodah from Elara Securities Private Limited. Thank you, and over to you, sir.
Yes. Good afternoon. Welcome to the Q4 and FY24 Conference Call for APL Apollo Tubes. From management, we have Mr. Sanjay Gupta, Chairman and Managing Director; Mr. Deepak Goyal, Director, Operations and Group CFO; and Mr. Anubhav Gupta, Chief Strategy Officer.
To start off, I will hand over the call to the management for opening remarks. Post that, we can have a detailed Q&A. Over to you, sir.
Thanks, Ravi, and thanks to Elara Capital for hosting Apollo Tubes for its Q4 FY24 earnings call. I welcome all the participants on this call. So
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