Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q3 FY2017 Earnings Presentation
28 slides from Apl Apollo Tubes's earnings presentation, Jan 28, 2017
Slide 1: APL Apollo Tubes Ltd. Q3 & 9M FY17 Earnings Presentation
APL APOLLO TUBES LTD. Q3 & 9M FY17 Earnings Presentation January 28, 2017 Infrastructure Construction Automobiles Energy Agriculture
Slide 2: 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 3: Table of Content
Table of Content Operational & Financial 1 Highlights Q3 & 9M FY2017 2 Company Overview 3 Conference Call Details 4 Annexure 3
Slide 4: Operational & Financial Highlights Q3 & 9M FY2017
Operational & Financial Highlights Q3 & 9M FY2017 Infrastructure Construction Automobiles Energy Agriculture
Slide 5: Q3 FY17 – Performance Highlights
Q3 FY17 – Performance Highlights APL Apollo delivers a steady quarter despite macro-economic challenges Sales Volume* (Lac Ton) Net Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Growth: 8% Growth: 21% Growth: 4% Growth: (5%) 76 2.22 1,146 946 31 2.06 73 30 Q3 FY16 Q3 FY17 Q3 FY16 Q3 FY17 Q3
Slide 6: 9M FY17 – Performance Highlights
9M FY17 – Performance Highlights Delivers a healthy 9M performance backed by strategic operational progress & robust financials Sales Volume* (Lac Ton) Net Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Growth: 11% Growth: 6% Growth: 25% Growth: 43% 3,229 105 6.97 252 202 73 6.31 3,033 9M FY1
Slide 7: Key Developments
Key Developments Strong emphasis on developing innovative steel structural products – Received Patents for 6 Product Designs taking the total to 7 in-house design patents • Received patents from the Indian Patent Office for six new product designs, including four designs of Hollow Section pipes. The
Slide 8: Key Developments
Key Developments Upcoming Greenfield facility at Raipur, Chhattisgarh is progressing well – First line to be operational in the coming months • Strategically located facility of 325,000 MTPA capacity will significantly strengthen the Company’s PAN India presence • Facility to include 125,000 MTPA ca
Slide 9: Abridged P&L Statement
Abridged P&L Statement Particulars (Rs. crore) Q3 FY17 Q3 FY16 Y-o-Y Shift 9M FY17 9M FY16 Y-o-Y Shift Income from Operations Net Manufacturing Sales 945.91 748.77 26% 2,811.15 2,552.35 10% Trading Sales 200.21 197.45 1% 417.98 480.72 -13% Total Income From Operations (Net) 1,146.12 946.22 21% 3,229
Slide 10: Key Financial & Operational Parameters
Key Financial & Operational Parameters Particulars Q3 FY17 Q3 FY16 Y-o-Y Shift 9M FY17 9M FY16 Y-o-Y Shift EBITDA Margin 6.65 7.73 -109 7.8 6.66 114 EBITDA Margin Manufacturing 7.93 8.92 -99 8.54 7.28 127 EBITDA Margin Trading 0.59 3.2 -261 2.82 3.18 -37 Profit Before Tax 4.15 4.93 -78 5.01 3.63 138
Slide 11: Key Financial & Operational Parameters: Sales Volume Break-up
Key Financial & Operational Parameters Sales Volume Break-up Sales Volume Break-up – 9M FY17 Q3 Q3 Y-o-Y 9M 9M Y-o-Y Particulars (Tons) Galvanized FY17 FY16 Shift FY17 FY16 Shift Tubes (GI) Hollow Sections 112,708 100,456 12% 353,141 300,334 18% 13% Black Round Pipes 33,945 41,765 -19% 114,443 129,7
Slide 12: Key Financial & Operational Parameters: Realizations
Key Financial & Operational Parameters Realizations (after adjusting inter-company) Q3 Q3 Y-o-Y 9M 9M Y-o-Y Particulars (Rs. / Ton) FY17 FY16 Shift FY17 FY16 Shift Hollow Sections 38,616 33,012 17% 36,698 36,869 0% Black Round Pipes 37,904 32,612 16% 36,015 36,221 -1% Pre-Galvanized Tubes (GP) 46,93
Slide 13: Financial Overview and Discussion
Financial Overview and Discussion • Total Net Income expands by 21% to Rs. 1,146.12 crore in Q3 FY17 despite the Demonetization scheme o Net sales (Manufacturing) stood at Rs. 945.91 crore as compared to Rs. 748.77 crore in Q3 FY16, higher by 26% Y-o-Y • In 9M FY17, Sales Volume (excluding Trading &
Slide 14: Financial Overview and Discussion
Financial Overview and Discussion • Total EBITDA in Q3 FY17 improved by 4% Y-o-Y to Rs. 76.16 crore compared to Rs. 73.17 crore o EBITDA margin stood at 6.65% vs 7.73% in Q3 FY16 o EBITDA per ton during the quarter was steady primarily due to ramp-up of sales in a subdued market environment. The Com
Slide 15: Management’s Message
Management’s Message Commenting on the Company’s performance for Q3 & 9M FY2017, Mr. Sanjay Gupta, Chairman, APL Apollo said, “Our performance during the quarter was steady especially given the challenging external environment owing to the Demonetization drive. We are pleased with the traction we ha
Slide 16: Company Overview
Company Overview Infrastructure Construction Automobiles Energy Agriculture
Slide 17: India’s Leading Branded Steel Tubes Manufacturer
India’s Leading Branded Steel Tubes Manufacturer Technology-focused Company – at the forefront of launching innovative product offerings Catering to an array of sectors – Infrastructure, Construction, Automobile, Energy, Agriculture, etc. Close-to-Demand Pan-India Presence – only player with facilit
Slide 18: One-stop shop for a wide spectrum of steel structural products
‘One-stop shop’ for a wide spectrum of steel structural products Catering to key sectors of the Indian economy Infrastructure Construction Automobiles Energy Agriculture • Metros • Conduit • Truck & Bus body • Power • Agriculture • Buildings • Support Structures • Heavy Vehicle Axles • Water Transpo
Slide 19: Close-to-Demand Pan-India Footprint
Close-to-Demand Pan-India Footprint Local Market Presence aided by 3-tier Distribution and Solid Supply Chain Mechanism Direct, 20% (Unit 1) Sikandarabad Uttar Pradesh (Apollo Metalex) 225,000 Sikandarabad State wise Wholesalers Uttar Pradesh 225,000 Retailers District wise Distributors Raipur (Lloy
Slide 20: Vision 2020
Vision 2020 Well-defined strategy with tangible targets 2.5 million ton Strong Balance- production by FY2020 Sheet Targeting above industry average To become debt-free growth rates / Roadmap for and reduced Working capacity expansion in place Capital cycle Margin Strengthen product accretive and cor
Slide 21: Consistently Delivering Strong Performance
Consistently Delivering Strong Performance Particulars 2007 2010 2012 2015 2016 CAGR Sales (Rs. Crore) 230 666 1, 536 3,482 4,656 40% EBITDA (Rs. Crore) 15 66 115 186 292 39% PAT (Rs. Crore) 7 30 49 64 101 35% Net Worth (Rs. Crore) 16 191 299 495 568 49% EPS (Rs.) 21 15 23 27 43 Ratios ROCE (%) 55 1
Slide 22: The ‘APL Apollo’ Edge
The ‘APL Apollo’ Edge PROFICIENT EXECUTION CYCLE ECONOMIES OF SCALE Best-in-Industry Capacity Utilization Capacity of 1.3 Million MTPA across plants, leading to an order of Steel Pipe – more than book turnaround of ~8 hours double the closest competitor PIONEER IN INTRODUCING NEW COST ADVANTAGES TEC
Slide 23: Conference Call Details
Conference Call Details Infrastructure Construction Automobiles Energy Agriculture
Slide 24: Conference Call Details
Conference Call Details APL Apollo Tubes Limited (APL Apollo) Q3 & 9M FY17 Earnings Conference Call Time • 11:00 am IST on Tuesday, January 31, 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
Slide 25: Annexure
Annexure Infrastructure Construction Automobiles Energy Agriculture
Slide 26: Key Market Statistics
Key Market Statistics As on Top Public Shareholders (more than % Key Market Statistics December 31, 2016 1%) held BSE/NSE Ticker 533758 / APLAPOLLO Kitara 16.3% Building Materials / Industry IDFC 6.5% Infrastructure CMP (Rs.) 915 DSP Blackrock 5.9% Market Cap (Rs. Crore) 2,159 HDFC Trustee Fund 4.9%
Slide 27: 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 28: Thank You
Thank You Infrastructure Construction Automobiles Energy Agriculture