Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q4 FY2017 Earnings Presentation
28 slides from Apl Apollo Tubes's earnings presentation, May 20, 2017
Slide 1: Q4 & FY17 Earnings Presentation
APL APOLLO TUBES LTD. Q4 & FY17 Earnings Presentation May 20, 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 Q4 & FY2017 2 Company Overview 3 Conference Call Details 4 Annexure 3
Slide 4: Operational & Financial Highlights Q4 & FY2017
Operational & Financial Highlights Q4 & FY2017 Infrastructure Construction Automobiles Energy Agriculture
Slide 5: FY17 – Performance Highlights
FY17 – Performance Highlights Delivers stable performance in a challenging external environment Sales Volume* (Lakh Ton) Net Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Growth: 4% Growth: 8% Growth: 12% Growth: 45% 9.31 4,545 328 8.93 292 146 101 4,214 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY
Slide 6: Q4 FY17 – Performance Highlights
Q4 FY17 – Performance Highlights Sales Volume* (Lakh Ton) Net Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Growth: (11%) Growth: 11% Growth: (15%) Growth: 50% 2.62 90 2.34 1,316 1,181 77 41 28 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Margins as a % of Income 7.6% 5.8%
Slide 7: Key Developments
Key Developments Undertook enhanced Branding activities to build solid visibility for ‘APL Apollo’ brand – launched new brand ‘Apollo Coastguard’ Pipes for the coastal regions • ‘Apollo Coastguard’ branded products to tap growing consumption of galvanized steel tubes in the Coastal Regions. Product
Slide 8: Key Developments
Key Developments Successfully established India’s 1st–ever Direct Forming Mill Technology (DFT) line at the Company’s Hosur plant • High quality customized shapes and sizes of products, achieved through DFT, to significantly expand addressable market and translate into huge cost-savings and better p
Slide 9: Abridged P&L Statement
Abridged P&L Statement Particulars (Rs. crore) Q4 FY17 Q4 FY16 Y-o-Y Shift FY17 FY16 Y-o-Y Shift Income from Operations Net Manufacturing Sales 1,088.6 860.0 27% 3,899.7 3,411.3 14% Trading Sales 227.3 320.6 -29% 645.3 802.3 -20% Total Income From Operations (Net) 1,315.9 1,180.5 11% 4,545.0 4,213.6
Slide 10: Key Financial & Operational Parameters
Key Financial & Operational Parameters Y-o-Y Shift Y-o-Y Shift Particulars (%) Q4 FY17 Q4 FY16 FY17 FY16 (bps) (bps) EBITDA Margin 5.79 7.61 -181 7.22 6.93 29 EBITDA Margin Manufacturing 6.82 9.88 -306 8.06 7.93 13 EBITDA Margin Trading 0.87 1.49 -62 2.13 2.63 -50 Profit Before Tax 3.55 4.47 -92 4.5
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES CONSOLIDATED CONSOLIDATED ASSETS CONSOLIDATED CONSOLIDATED As at 31st March As at 31st March As at 31st March As at 31st March 2017 2016 2017 2016 Particulars (Rs. Crore) Particulars (Rs. Crore) Audited Audited Audited Audited EQUITY AND LIABILITIES
Slide 12: Key Financial & Operational Parameters: Sales Volume Break-up
Key Financial & Operational Parameters Sales Volume Break-up Q-o-Q Y-o-Y Sales Volume Break-up – FY17 Particulars (Tons) Q4 FY17 Q3 FY17 FY17 FY16 Shift Shift Galvanized Tubes (GI) Hollow Sections 121,710 112,708 8% 474,851 425,513 12% 13% Black Round Pipes 36,317 33,945 7% 150,760 194,031 -22% Pre-
Slide 13: Key Financial & Operational Parameters: Realizations
Key Financial & Operational Parameters Realizations (after adjusting inter-company) Q4 Q3 Q-o-Q Y-o-Y Particulars (Rs. / Ton) FY17 FY16 FY17 FY17 Shift Shift Hollow Sections 42,439 38,641 10% 38,175 34,651 10% Black Round Pipes 41,762 37,929 10% 37,406 33,776 11% Pre-Galvanized Tubes (GP) 51,094 46,
Slide 14: Financial Overview and Discussion (YoY)
Financial Overview and Discussion (YoY) • Total Net Income increases by 8% to Rs. 4,545.0 crore in FY17 • Net sales (manufacturing) stood at Rs. 3,899.7 crore in FY17, higher by 14% Y-o-Y. In Q4 FY17, net sales (manufacturing) increased by 27% to Rs. 1,088.6 crore o Sales volume growth during the se
Slide 15: Financial Overview and Discussion (YoY)
Financial Overview and Discussion (YoY) • Interest cost declined by 2% YoY to Rs. 68.3 crore in FY17; lower by 10% to Rs. 16.4 crore during the quarter o Interest costs stood lower in Q4 & FY17 given the Company’s focus on reducing working capital cycle – inventory days lower by 11 days to 34 days a
Slide 16: Management’s Message
Management’s Message Commenting on the Company’s performance for Q4 & FY2017, Mr. Sanjay Gupta, Chairman, APL Apollo said, “FY17 has been a difficult year for us with the Company facing external market challenges including demonetization and volatile steel prices, which significantly impacted our vo
Slide 17: Company Overview
Company Overview Infrastructure Construction Automobiles Energy Agriculture
Slide 18: 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 19: 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 20: 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 21: 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 22: Consistently Delivering Strong Performance
Consistently Delivering Strong Performance Particulars 2007 2010 2012 2015 2016 2017 CAGR Sales (Rs. Crore) 230 666 1, 536 3,482 4,656 4,997 36% EBITDA (Rs. Crore) 15 66 115 186 292 328 36% PAT (Rs. Crore) 7 30 49 64 101 146 35% Net Worth (Rs. 16 191 299 495 568 720 46% Crore) EPS (Rs.) 21 15 23 27
Slide 23: 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 24: Annexure
Annexure Infrastructure Construction Automobiles Energy Agriculture
Slide 25: Key Market Statistics
Key Market Statistics As on Top Public Shareholders (more than % Key Market Statistics May 20, 2017 1%) held BSE/NSE Ticker 533758 / APLAPOLLO Kitara 16.3% Building Materials / Industry IDFC 5.7% Infrastructure CMP (Rs.) 1,367 DSP Blackrock 4.5% Market Cap (Rs. Crore) 3,224 HDFC Trustee Fund 4.9% Nu
Slide 26: Conference Call Details
Conference Call Details APL Apollo Tubes Limited (APL Apollo) Q4 & FY17 Earnings Conference Call Time • 11:00 am IST on Tuesday, May 23, 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: 0 808 101 157
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