Slide 1: Exchange filing cover letter for earnings presentation
27th January 2024 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 De
Slide 2: Q3FY24 Earnings Presentation
Q3FY24 Earnings Presentation 1
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 • Q3FY24 at glance • Financial Performance • Business Strategy • New Initiatives • ESG Engagement APL APOLLO TUBES • Team APL Apollo 3
Slide 5: Q3FY24 at a Glance
Q3FY24 at a Glance 604k Ton ₹ 41.8 Bn ₹2.8Bn ₹ 4,631 Sales Volume Revenue EBITDA EBITDA/ton Unchanged YoY 3% YoY decline 2% YoY increase 3% YoY increase 59% ₹285 Mn ₹ 1.7Bn ₹ 2.1Bn Value Added Sales mix Interest Cost Net profit Cash profit FY23 was 56% 53% YoY increase 2% YoY decline 4% YoY increase
Slide 6: 9MFY24 at a Glance
9MFY24 at a Glance 1,940k Ton ₹ 133.5Bn ₹9.1Bn ₹ 4,700 Sales Volume Revenue EBITDA EBITDA/ton 19% YoY increase 14% YoY increase 31% YoY increase 10% YoY increase 57% ₹823 Mn ₹ 5.6Bn ₹ 6.9 Bn Value Added Sales mix Interest Cost Net profit Cash profit Unchanged YoY 95% YoY increase 32% YoY increase 33
Slide 7: Quarterly Sales Volume/EBITDA/Net Profit
Quarterly Sales Volume/EBITDA/ Net Profit Profit & Loss (Rs Mn) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Sales Vol. (k Ton) 373 427 403 552 423 602 605 650 662 675 604 Revenue 25,343 30,839 32,304 42,147 34,386 39,692 43,271 44,311 45,449 46,304 41,778 EBITDA 2,54
Slide 8: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES 7
Slide 9: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Application Sales Sales Sales Sales Sales Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Mix Mix Mix Mix Mix (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) Hea
Slide 10: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Existing Proposed FY20 FY21 FY22 FY23 9MFY24 capacity Capacity Product Application Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton (KTon) (KTon) Category (%) (KTon) (Rs) (%) (KTon) (R
Slide 11: Diversified product offering created through continuous innovation
Diversified product offering created through continuous innovation Product Category Application Product – visual Key USPs Applications Applications – visual overview overview • First company to introduce DFT High-rise, Warehousing, Infrastructure technology in India Heavy • Offers columns of 300mm x
Slide 12: Global Peer Benchmarking
Global Peer Benchmarking 162 19% 17% 14% APL Apollo 185 106 6.8% 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 13: India Structural Steel Tube market potential
India Structural Steel Tube market potential Structural steel tube as % of steel market India Steel production (Mn Ton) India Structural steel tube market (Mn Ton) (2023) 17.3 11 210 9 9 8 8 7 139 5.5 7.7 Global Europe LAT-AM Japan Middle North India 2023 2030E 2023 2030E East America Structural ste
Slide 14: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rsm) 650 662 675 605 604 3,229 3,250 3,072 2,729 2,796 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 EBITDA/Ton (Rs) Net Profit (Rs Mn) APL APOLLO TUBES 4,970 2,018 1,936 2,029 1,692 1,655 4,817 4,645 4,631 4,510 Q3FY23 Q4FY
Slide 15: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 28.9 34.6 24.8 29.2 29.4 23.5 23.2 26.5 21.2 18.4 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 19.7 29 13.9 9.3 10.2 9 9 3.8 7 5 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23
Slide 16: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) 1.7 Net Debt/EBITDA (x) 9.8 9.7 6.5 5.1 4.8 0.2 0.2 0.2 0.2 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Net Debt/ Equity (x) Net Debt (Rs Bn) APL APOLLO TUBES 0.6 7.9 2.0 2.4 2.2 0.1 0.1 0.1 1.6 0.1 FY20 FY21 FY22 FY23 H1FY24 FY20 FY
Slide 17: Growing Strength to Strength
Growing Strength to Strength Operating Cashflow to EBITDA (%) Capex to Op. Cash flow (%) 144 90 87 74 107 95 59 69 76 29 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 FCF (Rs Bn) APL APOLLO TUBES Du-Pont ROE (%) 6.1 5 30 4 25 3 1.4 20 2 1 15 -0.4 0 10 -0.6 0.4 FY19 FY20 FY21 FY22 FY23 H1FY24
Slide 18: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rs Mn) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 FY23 9MFY24 Sales Volume (K Ton) 605 650 662 675 604 2,280 1,940 Net Revenue 43,271 44,311 45,449 46,304 41,778 1,61,660 1,33,531 Raw Material Costs 37,693 37,823 39,207 39,784 35,854 1,40,178 1,14,846 Employee C
Slide 19: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow(Consol) Balance Sheet - Assets (Rs mn) H1FY24 FY23 Cashflow Statement (Rs mn) H1FY24 FY23 Cash & Bank Balance 9,340 6,295 EBITDA 6,322 10,215 Receivables 1,445 1,374 Change in receivables -65 1,990 Inventories 13,633 14,799 Change in inventory 1158 -6340 Other current asset
Slide 20: Consol. Cash Flow Bridge
Consol. Cash Flow Bridge (Rs Mn.) 3,000 2,000 1,000 4,803 -3,564 (Rs Mn) 0 -1,000 600 -2,213 -2,434 -1,618 -2,000 -3,000 APL APOLLO TUBES Net debt in FY23 Op Cash flow Capex Investments Dividend & others Net debt in H1FY24 Business continues to Capex being funded from Net debt to EBITDA at 0.2x gene
Slide 21: Business Strategy
Capex Plan for Distribution value addition Enhancement BUSINESS STRATEGY APL APOLLO TUBES Market Creation Innovation 20
Slide 22: APL Apollo Vision
APL Apollo Vision MARKET CREATION INNOVATION ESG • Solid new product + • Replacement of + • Introducing environmentally conventional construction products friendly products pipeline • Wood • To reduce the emissions by • Complete product • Angles/Channels 25% by 2030 portfolio for steel • RCC • Worki
Slide 23: Innovation: widest size range of steel tubes
INNOVATION World’s only company to make steel tubes with size range of 8x8mm to 1000x1000mm and thickness range of 0.18 mm to 40mm APL APOLLO TUBES 22
Slide 24: 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 si
Slide 25: 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 24
Slide 26: Registered patents and products
AAS, Handrail Window Frame Window Frame Tube (L) Tube (T) REGISTERED PATENTS PRODUCTS Window Frame Reflector Tube Oval Tube Tube (2) n FJ Double Door Apollo Signature Four door > Frame Frame = fe} Plank Tube Octagon Fencing Tube re} < = < Single Door Elliptical Tube D Section Frame Checkered Sheets
Slide 27: New Product Pipeline from Raipur plant
New Product Pipeline from Raipur plant Superior corrosion resistant, World’s 1st thicker high load bearing with color coated products aesthetics World’s 1st Color coated Superior corrosion resistant structural steel tubes with aesthetics India’s 1st 500x500mm dia structural steel tubes Replacing RCC
Slide 28: Market Creation
MARKET CREATION APL APOLLO TUBES 27
Slide 29: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix 5% Housing 16% Commercial buildings Infrastructure 58% 21% Others APL APOLLO TUBES *As per 9MFY24 revenue 28
Slide 30: Application of Structural Steel Tubes
Application of Structural Steel Tubes Housing Commercial Airports/ Railway station Grill APL APOLLO TUBES Façade Columns Structure Fire fighting
Slide 31: 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 32: Revolutionizing Construction Industry
REVOLUTIONIZING CONSTRUCTION INDUSTRY APL APOLLO TUBES 31
Slide 33: 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 34: More live sites
More live sites MES – Delhi Cantonment University Campus- Telangana APL APOLLO TUBES Railway Station – Andhra Pradesh Hospital- Mumbai Water Tank, Uttar Pradesh 33 University, Delhi NCR Housing-Delhi
Slide 35: Delhi Hospitals: Proof of Concept
APL APOLLO TUBES 6 DELHI HOSPITALS: PROOF OF CONCEPT + Total 2mn Sq. ft built-up. + 18k ton Steel Tubes used + Structural work completed in average 90days Sultanpuri Raghuvir Nagar 34
Slide 36: 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 37: Growth Drivers
Growth Drivers Focus on high margin A Capacity expansion B New products C products D Geographic expansion East India Raipur project Products • Capacity: 0.2 MTPA • Project to help deeper • Capacity: 1.2 MTPA Project specifically focused at High- value added products 3 penetration in the Eastern Indi
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 E ▪ All plants have access to green energy, 2 plants have more than 85% de
Slide 41: Front runner for Steel for Green
Front runner for Steel for Green ▪ APL Apollo is the 1st Company to innovate readymade Doorframe, 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 sa
Slide 42: 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 43: 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 44: Board of Directors
Board of Directors Sanjay Gupta Vinay Gupta Rahul Gupta Chairman & Managing Director Director Director More than 20 years of industry A promising entrepreneur with Steel Industry veteran with 3 decades experience in the an experience of around 5 manufacturing and trading years in Steel Tubes of expe
Slide 45: Our Leadership
Our Leadership Vinay Gupta Rahul Gupta Deepak Goyal Anubhav Gupta Sanjay Gupta Director Director Director-Operations Chief Strategy Officer Chairman & Managing Director Chetan Khandelwal CK Singh APL APOLLO TUBES Ravindra Tiwari Vaibhaav Sharma Anurag Mehrotra Chief Sales Officer Chief Financial Chi
Slide 46: Thank You
Thank You For further information, please contact: Anubhav Gupta Deepak Goyal APL Apollo Tubes Ltd APL Apollo Tubes Ltd Tel: +91 120 691 8000 Tel: +91 120 691 8000 Email: anubhav@aplapollo.com Email: deepakgoyal@aplapollo.com APL APOLLO TUBES Shubham Mittal APL Apollo Tubes Ltd Tel: +91 120 691 8000
Slide 47: Press release: 9MFY24 financial performance
APL Apollo Tubes Limited Regd. Office: 37, Hargobind Enclave, Vikas Marg, Delhi – 110 092 Corp. Office: SG Centre, Plot No. 37-C, Block-B, Sector-132, Noida, Distt. Gautam Budh Nagar, U.P.-201304 9MFY24 FINANCIAL PERFORMANCE • Sales volume of 1.94mn Ton, +19% YoY • EBITDA of Rs9.1bn, +31% YoY • Net
Slide 48: Press release: Q3FY24 financial performance highlights
Q3FY24 Financial performance highlights ➢ Sales volume was unchanged YoY to 604k tons ➢ Revenue declined by 3% YoY to Rs41.8bn ➢ EBITDA increased by 2% YoY to Rs2.8bn o EBITDA per ton was Rs4,631 (+3% YoY) ➢ Net Profit declined by 2% YoY to Rs1.7bn Mr. Sanjay Gupta, Chairman, APL Apollo, comments on