Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q4 FY23 Earnings Presentation
48 slides from Apl Apollo Tubes's earnings presentation, May 12, 2023
Slide 1: Exchange filing cover letter for earnings presentation
12th May 2023 Electronic Filing National Stock Exchange of India Limited Department of Corporate Services/Listing “Exchange Plaza” Bandra-Kurla Complex, BSE Limited Bandra (E), Phiroze Jeejeebhoy Tower, Mumbai-400051 Dalal Street, Fort, Mumbai-400001 NSE Symbol : APLAPOLLO Scrip Code : 533758 Dear S
Slide 2: Q4 & FY23 Results
(aPLaProuo YDILI THINIG WE SUP CELEBRATING NETWORK OF 800 DISTRI Q4 & FY23 Results ll ALM
Slide 3: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Contents
Contents • Q4FY23 at glance • FY23 at glance • Financial Performance • Business Strategy APL APOLLO TUBES • New Initiatives • ESG Engagement • Team APL Apollo
Slide 5: Q4FY23 at a Glance
Q4FY23 at a Glance 650k ton ₹ 44.3 Bn ₹3.2 Bn ₹ 4,970 Sales Volume Revenue EBITDA EBITDA/ton 18% yoy increase 5% yoy increase 21% yoy increase 3% yoy increase ₹249 Mn ₹ 2.0 Bn 54% ₹ 2.5Bn Interest Cost Net profit Value Added Cash profit 147% yoy increase 24% yoy increase Sales mix 30% yoy increase Q
Slide 6: FY23 at a Glance
FY23 at a Glance 2,280k ton ₹161.7 Bn ₹10.2 Bn ₹ 4,481 Sales Volume Revenue EBITDA EBITDA/ton 30% yoy increase 24% yoy increase 8% yoy increase 17% yoy decrease ₹671 Mn ₹6.4 Bn 56% ₹ 9.7 Bn Interest Cost Net profit Value Added Op. Cash Flow 51% yoy increase 15% yoy increase Sales mix FY22 was Rs 6.5
Slide 7: Highest ever Quarterly Sales Volume/EBITDA
Highest ever Quarterly Sales Volume/EBITDA Profit & Loss Q1 FY21 Q2 FY21 Q3 FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 (Rs mn) Volume (k ton) 238 481 486 435 373 427 403 552 423 602 605 650 Net Sales 11,098 22,021 26,009 25,870 25,343 30,839 32,304 42,147 34,386 39,692 43,27
Slide 8: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES
Slide 9: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Sales Volum EBITDA EBITDA Sales Volum EBITDA Sales Volum EBITDA Sales Volum EBITDA Product Category Application Sales Mix Volume Mix e /Ton /Ton Mix e /Ton Mix e /Ton Mix e /Ton (%) (KTon) (Rs) (%) (KTon) (Rs) (%) (KTon) (Rs) (%)
Slide 10: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio FY19 FY20 FY21 FY22 FY23 EBITDA/ Sales EBITDA/ Sales EBITDA/ Sales EBITDA/ Sales Product Category Application Sales Mix Volume Ton Mix Volume Ton Mix Volume Ton Mix Volume Ton Mix Volume EBITDA/Ton Gradually (%) (KTon) improved our value added product contribution
Slide 11: Global Peer Benchmarking
Global Peer Benchmarking 19% 162 85 17% 14% APL Apollo 185 106 6% SSAB 68 Maruichi Zekelman SSAB Maruichi Zekelman APL Apollo Revenue (Rs Bn) EBIDTA Margin (%) 3.6 APL APOLLO TUBES 2.8 60% 60% 80% 1.4 97% 1.1 SSAB Maruichi Zekelman APL Apollo SSAB Maruichi Zekelman APL Apollo Manufacturing Capacity
Slide 12: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rsm) 650 3,229 602 605 552 2,661 2,729 2,319 423 1,939 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 EBITDA/Ton (Rs) Net Profit (Rsm) APL APOLLO TUBES 4,823 4,970 2,018 4,587 4,510 3,850 1,630 1,692 1,502 1,071 Q4FY22 Q1FY23
Slide 13: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) Net Debt/EBITDA (x) 2.1 9.8 9.7 1.7 6.5 5.1 3.6 0.2 0.2 0.2 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Debt/ Equity (x) Net Debt (Rs Bn) APL APOLLO TUBES 0.9 8.1 7.9 0.6 2.4 2.0 1.6 0.1 0.1 0.1 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY2
Slide 14: Growing Strength to Strength
Growing Strength to Strength ROCE (%) ROE (%) 34.6 28.9 29.2 24.8 26.5 23.5 21.2 16.5 18.4 18.4 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 34 19.7 29 13.9 9.3 9 7 3.8 5 3.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 15: Growing Strength to Strength
Growing Strength to Strength 90 Capex to Op. Cash flow (%) 87 Operating Cashflow to EBITDA (%) 144 63 59 107 91 95 69 29 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FCF (Rs Bn) Du-Pont ROE (%) 5 30 APL APOLLO TUBES 6.1 4 25 3 20 2 -0.6 15 0.4 1 -0.1 0 10 -0.4 FY19 FY20 FY21 FY22 FY23 FY19 FY20
Slide 16: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rsm) Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY22 FY23 Sales Volume (k Ton) 552 423 602 605 650 1,755 2,280 Net Revenue 42,147 34,386 39,692 43,271 44,311 1,30,633 1,61,660 Raw Material Costs 36,829 29,915 34,747 37,693 37,823 1,12,231 1,40,178 Employee Costs
Slide 17: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow(Consol) Balance Sheet - Assets (Rs mn) FY23 FY22 Cashflow Statement (Rs mn) FY23 FY22 Cash & Bank Balance 6,295 3,764 EBITDA 10,215 9,452 Receivables 1,374 3,417 Accounts receivables 1,990 -2,108 Inventories 14,799 8,472 Inventory -6340 -887 Other current assets 3,110 2,617
Slide 18: Consol. Cash Flow Bridge
Consol. Cash Flow Bridge (Rs Mn.) 10,000 8,000 6,000 4,000 9,670 -8,424 (Rs mn.) 2,000 0 -2,042 -2,434 APL APOLLO TUBES -2,000 -222 -1,417 -4,000 Net debt in FY22 Op Cash flow Capex Investments Dividend & others Net debt in FY23 Business continues to Capex being funded from Net debt to EBITDA at 0.2
Slide 19: Business Strategy
Capex Plan for Distribution Capex Plan for Distribution value addition Enhancement value addition Enhancement BUSINESS STRATEGY APL APOLLO TUBES Market Market Creation Creation Innovation Innovation
Slide 20: APL Apollo Vision
APL Apollo Vision MARKET CREATION INNOVATION ESG • Solid new product + • Replacement of conventional + • Introducing environmentally construction products friendly products pipeline • Wood • To reduce the emissions by • Complete product • Angles/Channels 25% by 2030 • RCC • Working Towards gender po
Slide 21: Innovation: widest size range of steel tubes
INNOVATION Mission: World’s only company to make steel tubes with size range of 10x10mm to 1000x1000mm and thickness range of APL APOLLO TUBES 0.23 mm to 40mm 20
Slide 22: What we have done so far as the first company: Indian Markets
What we have done so far as the first company Indian Markets Structural steel square and Structural application in rectangular tubes: construction Industry Pre-galvanized structural Corrosive resistant structural steel tubes (Apollo Z): applications DFT (Direct Forming Faster TAT with tailor made AP
Slide 23: What we have done so far as the first company: Global Markets
What we have done so far as the first company Global Markets Chaukhat (Door frame Replacing Conventional shape tubes) wooden door frames Rectangular section of 1:11 Replacing Conventional (Length to Breadth) wooden sections APL APOLLO TUBES 22
Slide 24: Registered Patents
16 Registered Patents Double Door Chaukhat Tube Apollo Signature Four Double Door Chaukhat Tube Single Door Chaukhat Tube Elliptical Tube for electric transformers D Section for Handrail/Fence Handrail Tube Window Frame Tube (L) APL APOLLO TUBES Window Frame Tube (T) Window Frame Tube (Z) Reflector
Slide 25: New Product Pipeline from Raipur plant
New Product Pipeline from Raipur plant World’s 1st thicker color Superior corrosion resistant, high coated products load bearing with aesthetics World’s 1st Color coated Superior corrosion resistant with structural steel tubes aesthetics India’s 1st 500x500mm dia structural steel tubes Replacing RCC
Slide 26: Market Creation
MARKET CREATION APL APOLLO TUBES 25
Slide 27: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix Commercial Buildings 25% Housing 50% APL APOLLO TUBES Infrastructure 20% Others 5% 26
Slide 28: How Have We Created Market..
How Have We Created Market.. Conventional Construction Why Structural Steel Tube replaces How to replace the conventional Applications Products these products? products?? Structural support, Towers Uniform Strength, Steel Angle/Channels infrastructure Lower steel consumption Low Diameter Cost Effect
Slide 29: Revolutionizing Construction Industry
REVOLUTIONIZING CONSTRUCTION INDUSTRY APL APOLLO TUBES 28
Slide 30: Tubular Construction Process flow
Tubular Construction Process flow Tube Manufacturing Fabrication Civil Foundation Hospital Building Production of 6,000 ton ERW Tubes are sand blasted, Civil Foundation & Arrangement Hospital tubes per day at plants of APL then connected using of anchor bolts at site to install Apollo connectors tub
Slide 31: Delhi Hospitals - Proof of Concept
Delhi Hospitals- Proof of Concept Geeta Colony Sultanpuri Shalimar Bagh Fabrication & Erection Fabrication & Erection Fabrication & Erection 1,000 ton 600 ton 3,300 ton APL APOLLO TUBES Revolution in Construction GTB Hospital Sarita Vihar Fabrication & Erection Fabrication & Erection 1,800 ton 900 t
Slide 32: Applications
Applications ● High Rise Buildings ○ Hospitals, Housing, Schools, Courts, Hotels/Malls/Offices 45 42mn sq. ft. 220,000 ton heavy structural steel ● Warehouses/Cold Storage/Food Parks projects Visibility tubes ● Factory Buildings/Process Structures ● Aviation Hangers Ongoing enquiries ● Data Centres
Slide 33: Our Biggest Ever (New Raipur Plant)
OUR BIGGEST EVER APL APOLLO TUBES (NEW RAIPUR PANT) 32
Slide 34: Raipur Plant Update
Raipur Plant Update HIGHLIGHTS • Upcoming 400 Acre Raipur plant progressing on expected lines • Project commenced in phases from H2FY23 • 100% value added products APL APOLLO TUBES • Total capex Rs8-10bn; c90% already incurred 33
Slide 35: Raipur Plant Update
Raipur Plant Update APL APOLLO TUBES Area of 1.5mn square feet being built using 100% Apollo Column Tubes 34
Slide 36: New Initiatives
APL APOLLO TUBES NEW INITIATIVES
Slide 37: B2C Tech App
B2C Tech App APL APOLLO MOBILE - APPLICATION LAUNCHED 30,000+ Fabricators enrolled APL APOLLO TUBES 145,000+ Total Downloads 400+ Designs 16 Patents registered
Slide 38: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 37
Slide 39: DJSI Scoring
DJSI Scoring APL APOLLO SCORED 80TH PERCENTILE IN FY22 We expect better score APL APOLLO TUBES this year as we are improving on ESG parameters 38
Slide 40: Commitment and achievements
Commitment and achievements Commitments Achievements Committed to reducing Scope 1&2 emissions by 25% by 2030 E Introduced new, environmentally friendly products E Committed to set near term and Net Zero targets by 2050 All plants have access to green energy, 2 plants have more E than 85% de
Slide 41: ESG Developments
ESG Developments Assessed Scope 3 emissions (in addition to Scope 1 & Scope 2) 1) Safety Manual formulated for all the production facilities and offices 2) New Human Rights policy incorporated APL APOLLO TUBES Code of Conduct: New Code of conduct is formulated for all employees 40
Slide 42: Front runner for Steel for Green
Front runner for Steel for Green APL Apollo is the 1st Company to innovate readymade Chaukhat, Fence, Plank and Hand rails as Steel for Green Concept which replaced conventional wood application in building construction Our Products are saving 250,000 trees every year, going ahead we will be sav
Slide 43: Steel Buildings = Decarbonization
Steel Buildings = Decarbonization ● Construction sector contributes 30% of direct and indirect Co2 emissions Steel Structure - RCC Structure ● Structural steel is preferred for steel buildings because steel is ○ Infinitely recyclable ○ Easy to pre-fabricate ○ High volume to weight ratio APL Apollo T
Slide 44: Financial Priorities under Strong Governance
Financial Priorities under Strong Governance Growth Earnings Drive sustainable EPS growth Profitable Organic Growth Attain earnings objectives across Commitment to R&D and Talent economic cycles Innovate products to replace conventional construction methods APL APOLLO TUBES Capital Allocation Drive
Slide 45: Team APL Apollo
Team APL Apollo DIRECTORS DIRECTORS (NON (NON EXECUTIVE) EXECUTIVE) Neeru Abrol Abhilash Lal Anil Kumar Bansal Virendra Singh Jain Director at TCNS Clothing Co 3 decades of professional Director of NABARD, Rockland Board member of Dalmia Bharat Limited & others|Awarded best experience in senior role
Slide 46: Thank You
Thank You For further information, please contact: Anubhav Gupta Deepak Goyal APL Apollo new Corporate office (Work in progress) APL Apollo Tubes Ltd APL Apollo Tubes Ltd Tel: +91 120 404 1452 Tel: +91 120 404 1400 Email: anubhav@aplapollo.com Email: deepakgoyal@aplapollo.com APL APOLLO TUBES Kamal
Slide 47: APL Apollo Tubes Limited press release
APL Apollo Tubes Limited Regd. Office: 37, Hargobind Enclave, Vikas Marg, Delhi – 110 092 Corp. Office: 36, Kaushambi, Behind Wave Cinemas, Ghaziabad – 201010 Q4FY23 FINANCIAL PERFORMANCE Sales volume of 649,726 tons, +18% YoY EBITDA of Rs3.2bn, +21% YoY Net Profit of Rs2.0bn, +24% YoY FY23 FINANCIA
Slide 48: FY23 Financial performance highlights
FY23 Financial performance highlights Sales volume up by 30% YoY to 2,280k tons Revenue expanded by 24% YoY to Rs161.7bn EBITDA increased by 8% to Rs10.2bn o EBITDA per ton was Rs4,481 (-17% YoY) Net Profit increased by 4% to Rs6.4bn Note: Sales Volume and Financials are on consolidated basi