Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Q3 FY2023 Earnings Presentation
44 slides from Apl Apollo Tubes's earnings presentation, February 2023
Slide 1: Q3FY23 Results
(aPLaPouo YDILI THINIE WE SUP? CELEBRATING NETWORK OF 800 DISTR Q3FY23 Results ANIM
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: Contents
Contents • Q3FY23 at glance • Financial Performance • Business Strategy • New Initiatives APL APOLLO TUBES • ESG Engagement • Team APL Apollo
Slide 4: Q3FY23 at a Glance
Q3FY23 at a Glance 605k ton ₹ 43.3 Bn ₹2.7 Bn ₹ 4,510 Sales Volume Revenue EBITDA EBITDA/ton 50% yoy increase 34% yoy increase 35% yoy increase 10% yoy decline ₹186 Mn* ₹ 1.7 Bn 56% ₹ 6.0 Bn Interest Cost Net profit Value Added 9MFY23 OpCF 71% yoy increase 32% yoy increase Sales mix FY22 was Rs 6.5
Slide 5: Highest ever Quarterly Sales Volume/EBITDA
Highest ever Quarterly Sales Volume/EBITDA Profit & Loss (Rs Crs) Q1 FY21 Q2 FY21 Q3 FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Volume (K tons) 238 481 486 435 373 427 403 552 423 602 605 Net Sales 1,110 2,202 2,601 2,587 2,534 3,084 3,230 4,215 3,439 3,969 4,327 EBITDA 71 169 232
Slide 6: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES
Slide 7: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q3FY22 Q1FY23 Q2FY23 Q3FY23 Product Category Application Sales Mix Volume EBITDA/Ton Sales Mix Volume EBITDA/Ton Sales Mix Volume EBITDA/Ton Sales Mix Volume EBITDA/Ton (%) (KTon) (Rs) (%) (KTon) (Rs) (%) (KTon) (Rs) (%) (KTon) (Rs) Big Section 9 35 7,531 8 33 7,02
Slide 8: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Value added products contributed 63% of total sales in FY22 vs 42% in FY18 FY18 FY19 FY20 FY21 FY22 9MFY23 Product Category Application Sales Mix Volume Gradually EBITDA/Ton Sales Mix improved our Volume EBITDA/Ton Sales Mix value added Volume EBITDA/Ton Salesprodu
Slide 9: Global Peer Benchmarking
Global Peer Benchmarking 19% 85 131 17% 14% APL Apollo 185 106 7% SSAB 68 Maruichi Zekelman SSAB Maruichi Zekelman APL Apollo Revenue (Rs Bn) EBIDTA Margin (%) 2.8 2.6 APL APOLLO TUBES 1.4 1.1 60% 60% 80% 97% SSAB Maruichi Zekelman APL Apollo SSAB Maruichi Zekelman APL Apollo Manufacturing Capacity
Slide 10: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rsm) 2,661 2,729 602 605 2,319 552 2,023 1,939 403 423 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 EBITDA/Ton (Rs) Net Profit (Rsm) APL APOLLO TUBES 5,023 1,692 4,823 1,766 4,587 4,510 1,502 3,850 1,279 1,207 Q3FY22 Q4FY22
Slide 11: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) Net Debt/EBITDA (x) 2.1 2.1 1.7 9.8 6.5 6.0 5.1 3.6 0.9 0.2 0.2 0.3 FY18 FY19 FY20 FY21 FY22 9MFY23 FY18 FY19 FY20 FY21 FY22 9MFY23 Net Debt/ Equity (x) Net Debt (Rs Bn) APL APOLLO TUBES 0.9 0.9 8.1 7.9 7.7 0.6 2.6 2.0 1.6 0.1 0.1 0.1 FY18 FY1
Slide 12: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 34.6 28.9 24.8 28.7 23.5 26.5 20.5 21.2 20.8 16.5 18.4 18.4 FY18 FY19 FY20 FY21 FY22 9MFY23 FY18 FY19 FY20 FY21 FY22 9MFY23 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 19.7 48 16.9 34 29 9.3 4.0 3.8 9 7 3.0 6 FY18 FY19 FY20 FY21
Slide 13: Growing Strength to Strength
Growing Strength to Strength 184 Operating Cashflow to EBITDA (%) Capex to Op. Cash flow (%) 144 107 91 90 85 86 69 63 59 29 25 FY18 FY19 FY20 FY21 FY22 9MFY23 FY18 FY19 FY20 FY21 FY22 9MFY23 FCF (Rs Bn) Du-Pont ROE (%) APL APOLLO TUBES 5 30 4 25 3 6.1 20 2 15 1 0.2 0 10 -1.5 -0.1 -0.4 -0.6 FY18 FY1
Slide 14: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rsm) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 FY22 FY21 Sales Volume (k Ton) 403 552 423 602 605 1,755 1,640 Net Revenue 32,304 42,147 34,386 39,692 43,271 1,30,633 84,998 Raw Material Costs 28,097 36,829 29,915 34,747 37,693 1,12,231 71,648 Employee Costs 389
Slide 15: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow(Consol) Balance Sheet - Assets (Rs mn) H1FY23 FY22 Cashflow Statement (Rs mn) H1FY23 FY22 Cash & Bank Balance 6,570 3,764 EBITDA 4,258 9,452 Receivables 1,049 3,417 Accounts receivables 2,385 -2,108 Inventories 10,933 8,472 Inventory -2,468 -887 Other current assets 1,816 2
Slide 16: Consol. Cash Flow Bridge
Consol. Cash Flow Bridge (Rs mn) -1,201 -257 -2,041 -2,616 Net Debt 31-Mar-22 Op. cash flow Capex Investments Dividend & Others Net Debt 31-Dec-22 6,022 -5,138 APL APOLLO TUBES Op. Cashlow at 86% of EBITDA EBITDA – Rs 6,987mn WC Chg – Rs 576mn Tax – Rs 1,541mn Business continues to Capex being funde
Slide 17: 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 18: 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 19: Innovation
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 19
Slide 20: What we have done so far as the first company
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 21: What we have done so far as the first company
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 21
Slide 22: 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 23: 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 24: Market Creation
MARKET CREATION APL APOLLO TUBES 24
Slide 25: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix Commercial Buildings 25% Housing 50% APL APOLLO TUBES Infrastructure 20% Others 5% 25
Slide 26: 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 27: Revolutionizing Construction Industry
REVOLUTIONIZING CONSTRUCTION INDUSTRY APL APOLLO TUBES 27
Slide 28: 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 29: 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 30: 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 31: Our Biggest Ever (New Raipur Plant)
OUR BIGGEST EVER APL APOLLO TUBES (NEW RAIPUR PANT) 31
Slide 32: Raipur Plant Update
Raipur Plant Update HIGHLIGHTS • Upcoming 400 Acre Raipur plant progressing on expected lines • Project to commence in phases starting H2FY23 • 100% value added products APL APOLLO TUBES • Total capex Rs8-10bn; c90% already incurred 32
Slide 33: Raipur Plant Update
Raipur Plant Update APL APOLLO TUBES Area of 1.5mn square feet being built using 100% Apollo Column Tubes 33
Slide 34: New Initiatives
APL APOLLO TUBES NEW INITIATIVES
Slide 35: 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 36: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 36
Slide 37: DJSI Scoring
DJSI Scoring APL APOLLO SCORED 80TH PERCENTILE IN FY22 We expect better score this year as we are improving on ESG parameters 37
Slide 38: 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 39: 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 39
Slide 40: 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 41: 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 42: 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 43: 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 44: Thank You
Thank You For further information, please contact: APL Apollo new Corporate office (Work in progress) Deepak Goyal APL Apollo Tubes Ltd Tel: +91 120 404 1400 APL APOLLO TUBES Email: deepakgoyal@aplapollo.com Anubhav Gupta APL Apollo Tubes Ltd Tel: +91 120 404 1452 Email: anubhav@aplapollo.com APL Ap