Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q1 FY2018 Earnings Presentation
23 slides from Apl Apollo Tubes's earnings presentation, Sep 9, 2017
Slide 1: Exchange filing cover letter for press release and earnings presentation
APLAPOLLO Sudesh Group 9" September 2017 APL/SECT/DLH/SE: 2017-18 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 Daial Street, Fort, Mumbai-4000
Slide 2: APL Apollo Tubes Ltd. Q1 FY18 Earnings Presentation
APL APOLLO TUBES LTD. Q1 FY18 Earnings Presentation September 9, 2017 Infrastructure Construction Automobiles Energy Agriculture
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: Table of Content
Table of Content Operational & Financial 1 Highlights Q1 FY2018 2 Conference Call Details 3 Annexure 3
Slide 5: Operational & Financial Highlights Q1 FY2018
Operational & Financial Highlights Q1 FY2018 Infrastructure Construction Automobiles Energy Agriculture
Slide 6: Q1 FY18 – Performance Highlights
Q1 FY18 – Performance Highlights Sales Volume* (Lakh Ton) Net Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Growth: 11% Growth: 18% Growth: (9%) Growth: (11%) 2.65 1,156 97 2.39 976 44 88 39 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Margins as a % of Income 10.0% 7.6% 4
Slide 7: Key Developments: Direct Forming Technology line at Raipur
Key Developments Started producing India’s largest diameter Hollow Section pipes on the newly commissioned Direct Forming Technology (DFT) line at Raipur facility – sole manufacturer of 300x300mm size in the country • Huge opportunity to almost entirely replace imports as well as substitute current
Slide 8: Key Developments: Joint venture for inline galvanized products
Key Developments APL Apollo Tubes and o2Oh form joint venture to develop and expand market for Inline Galvanized products in India • ‘APL Apollo Tubes’ and ‘One to one holdings’ forms a joint venture (JV) to develop, manufacture and commercialize the Inline Galvanizing technology for the first time
Slide 9: Key Developments: New product launches
Key Developments Strong focus towards building brand visibility through New Product Launches Apollo Coastguard Apollo Fabritech* Apollo Agritech* Apollo Bheem* ‘Apollo Coastguard’ branded ‘Apollo Fabritech’, hollow ‘Apollo Agritech’, hollow ‘Apollo Bheem’ pipes are products to tap growing sections m
Slide 10: Key Developments: Dealer-distributor-retailer network expansion
Key Developments Direct / OEMs / Exports: 20% Notably upscaling reach by increasing dealer-distributor- retailer & warehouse network – a key growth lever for the Company State wise Wholesalers Retailers • Strengthening market presence across cities through dealer- District wise Distributors distribu
Slide 11: Key Developments: Volume growth and capacity expansion
Key Developments Healthy uptick in volumes during the quarter despite GST implementation impacting volumes in latter half of June – the Company anticipates to report robust volume growth in the upcoming quarters • Reported 11% volume growth in Q1 FY18 – expanded dealer-distributor-retail network, pr
Slide 12: Key Developments: Cost savings and CRISIL ratings
Key Developments Embarking on various cost-saving initiatives - enhancing cost efficiency across verticals and platforms • Innovative approach in production and distribution of the products will help the Company to effectively manage manufacturing, selling and distribution cost • In the domestic mar
Slide 13: Abridged P&L Statement
Abridged P&L Statement Particulars (Rs. crore) Q1 FY18 Q1 FY17 Y-o-Y Shift Income from Operations Revenue from Operations 1,155.6 975.8 18% Total Income From Operations (Net) 1,155.6 975.8 18% Total Expenditure Raw Material expenses 974.3 799.6 Employee benefits expense 21.2 19.4 Other expenses 81.4
Slide 14: Key Financial & Operational Parameters
Key Financial & Operational Parameters Y-o-Y Shift Particulars (%) Q1 FY18 Q1 FY17 (bps) EBITDA Margin 7.6% 10.0% -240 Profit Before Tax 5.0% 6.9% -190 Net Margin 3.4% 4.5% -110 Total Expenditure / Total Operating Income 93.2% 90.4% 280 Raw Material Cost / Total Operating Income 84.3% 81.9% 240 Staf
Slide 15: Key Financial & Operational Parameters: Sales volume break-up
Key Financial & Operational Parameters Sales Volume Break-up Sales Volume Break-up – Q1 FY18 Q1 Q1 Y-o-Y Q4 Q-o-Q Galvanized Particulars (Tons) FY18 FY17 Shift FY17 Shift Tubes (GI) 11% Hollow Sections 137,249 119,998 14% 121,710 13% Black Round Pipes 38,938 41,029 -5% 36,317 7% Pre- Galvanized Holl
Slide 16: Key Financial & Operational Parameters: Realizations and revenue
Key Financial & Operational Parameters Realizations (after adjusting inter-company) Q1 Q1 Y-o-Y Q4 Q-o-Q Particulars ( Rs. / Ton) FY18 FY17 Shift FY17 Shift Hollow Sections 39,689 36,700 8% 42,439 -6% Black Round Pipes 38,962 36,200 8% 41,762 -7% Product-wise Revenue Break-up – Q1 FY18 Pre-Galvanize
Slide 17: Financial Overview and Discussion (YoY)
Financial Overview and Discussion (YoY) • Total Net Income stood at Rs. 1,155.6 crore in Q1 FY18, registering an increase of 18% Y-o-Y. o Healthy pick-up in demand had a positive impact on the sales volume growth during the quarter despite GST implementation leading to subdued volumes in the latter
Slide 18: Financial Overview and Discussion (YoY)
Financial Overview and Discussion (YoY) • Interest cost declined by 12% YoY to Rs. 17.7 crore o Interest costs stood lower during the quarter given the Company’s focus on reducing working capital cycle o Improvement in credit rating of Bank Facilities and NCDs along with overall reduction in interes
Slide 19: Management’s Message
Management’s Message Commenting on the Company’s performance for Q1 FY2018, Mr. Sanjay Gupta, Chairman, APL Apollo said, “Fiscal 2018 has begun on an encouraging note for us with notable progress on various operational and strategic parameters. We reported healthy sales volume performance during the
Slide 20: Annexure
Annexure Infrastructure Construction Automobiles Energy Agriculture
Slide 21: Conference Call Details
Conference Call Details APL Apollo Tubes Limited (APL Apollo) Q1 FY18 Earnings Conference Call Time • 4:00 pm IST on Monday, September 11, 2017 Local dial-in numbers • Primary number: +91 22 3938 1071 International Toll Free Number • Hong Kong: 800 964 448 • Singapore: 800 101 2045 • UK: 0 808 101 1
Slide 22: About Us
About Us APL Apollo Tubes Limited (APL Apollo) [BSE: 533758, NSE: APLAPOLLO] is one of India’s leading branded steel products manufacturers. Headquartered at Delhi NCR, the Company operates six manufacturing facilities with a total capacity of 1.3 Million MTPA. It has a PAN-Indian presence with unit
Slide 23: Thank You
Thank You Infrastructure Construction Automobiles Energy Agriculture