Slide 1: Exchange filing cover letter for earnings presentation
11th May 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 Dear S
Slide 2: Q4FY24 Earnings Presentation
Q4FY24 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 • Q4FY24 at glance • Financial Performance • Business Strategy • New Initiatives • ESG Engagement APL APOLLO TUBES • Team APL Apollo 3
Slide 5: Q4FY24 at a Glance
Q4FY24 at a Glance 679k Ton ₹ 47.7 Bn ₹2.8Bn ₹ 4,132 Sales Volume Revenue EBITDA EBITDA/ton 4% YoY increase 8% YoY increase 13% YoY decline 17% YoY decline 12% QoQ increase 14% QoQ increase Unchanged QoQ 11% QoQ decline 60% ₹311 Mn* ₹1.7Bn ₹ 2.2Bn Value Added Sales mix Interest Cost Net profit Cash
Slide 6: FY24 at a Glance
FY24 at a Glance 2,618k Ton ₹ 181.2 Bn ₹11.9Bn ₹ 4,553 Sales Volume Revenue EBITDA EBITDA/ton 15% YoY increase 12% YoY increase 17% YoY increase 2% YoY increase 58% ₹1.1 Bn* ₹ 7.3Bn ₹ 9.1 Bn Value Added Sales mix Interest Cost Net profit Cash profit 56% in FY23 69% YoY increase 14% YoY increase 16%
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 Q4FY24 Sales Volume (k Ton) 373 427 403 552 423 602 605 650 662 675 604 679 Revenue 25,343 30,839 32,304 42,147 34,386 39,692 43,271 44,311 45,449 46,304 41,77
Slide 8: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES 7
Slide 9: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Sales Sales Sales Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Application 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 FY24 capacity Capacity Product Sales Sales Sales Sales Sales Application Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton (KTon) (KTon) Category Mix Mix Mix Mix Mix (%) (KTon) (Rs) (%) (KTon) (Rs)
Slide 11: Global Peer Benchmarking
Global Peer Benchmarking 181 19% 17% 14% APL Apollo 185 106 6.6% SSAB 68 Maruichi Zekelman SSAB Maruichi Zekelman APL Apollo Revenue (Rs Bn) EBIDTA Margin (%) 3.8 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 12: 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 13: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rs Mn) 675 679 3,229 3,250 662 650 3,072 2,796 2,804 604 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 EBITDA/Ton (Rs) Net Profit (Rs Mn) APL APOLLO TUBES 2,018 1,936 2,029 4,970 4,645 4,817 4,631 1,655 1,704 4,132 Q4FY23 Q1
Slide 14: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 34.6 28.9 24.8 29.2 29.5 23.5 22.2 26.5 21.2 18.4 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 19.7 29 13.9 9.3 9.6 9 7 3.8 5 1 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 N
Slide 15: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) Net Debt/EBITDA (x) 1.7 11.2 9.8 9.7 6.5 5.1 Net cash 0.2 0.2 0.2 -0.0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Net Debt/ Equity (x) Net debt/ (cash) (Rs Bn) APL APOLLO TUBES 0.6 7.9 Net 2.4 Net 0.1 1.6 2.0 0.1 0.1 cash cash -0.0 -0.2
Slide 16: Growing Strength to Strength
Growing Strength to Strength Operating Cashflow to EBITDA (%) Capex to Op. Cash flow (%) 90 87 144 107 59 59 95 94 69 29 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FCF (Rs Bn) Du-Pont ROE (%) APL APOLLO TUBES 6.1 5 30 4 25 3.6 3 20 2 15 1 -0.4 0 10 -0.6 0.4 FY19 FY20 FY21 FY22 FY23 FY24 Net M
Slide 17: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rs Mn) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY23 FY24 Sales Volume (K Ton) 650 662 675 604 679 2,280 2,618 Net Revenue 44,311 45,449 46,304 41,778 47,657 1,61,660 1,81,188 Raw Material Costs 37,823 39,207 39,784 35,854 41,326 1,40,178 1,56,172 Employee Cos
Slide 18: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow (Consol) Balance Sheet - Assets (Rs mn) FY24 FY23 Cashflow Statement (Rs mn) FY24 FY23 Cash & Bank Balance 11,430 6,295 EBITDA 11,922 10,215 Receivables 1,391 1,374 Change in receivables -1 1,990 Inventories 16,379 14,799 Change in inventory -1,595 -6,340 Other current asse
Slide 19: Cash Flow Bridge
Cash Flow Bridge (Rs Mn) 10,000 8,000 6,000 4,000 11,209 (Rs Mn) -44 -1,927 2,000 -6,618 185 0 -2,434 -2,000 APL APOLLO TUBES -4,000 Net debt in FY23 Op Cash flow Capex Investments Dividend & Net cash in FY24 others Business continues to Capex being funded from generate strong Net cash balance sheet
Slide 20: Business Strategy
Capex Plan for Distribution value addition Enhancement BUSINESS STRATEGY APL APOLLO TUBES Market Creation Innovation 19
Slide 21: 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 22: Innovation
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 21
Slide 23: 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 24: 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 23
Slide 25: 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 26: 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 27: Market Creation
MARKET CREATION 26
Slide 28: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix 5% 13% Housing Commercial buildings 19% Infrastructure 63% Others APL APOLLO TUBES *As per FY24 revenue 27
Slide 29: Steel Tube usage in housing/commercial buildings
Steel Tube usage in housing/commercial buildings Housing Commercial/Infrastructure Cost (per sq ft in Homes) Cost (per sq ft in Commercial/Infra) 125 523 50 41 43 35 23 125 23 50 35 43 Steel Tubes PVC pipes Tiles Wires Cement Paints Steel PVC pipes Tiles Wires Cement Paints tubes Steel Tube applicat
Slide 30: Diversified product offering
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 • Offers columns of 300mm x 300mm
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 31
Slide 33: Tubular Construction Process flow
Tubular Construction Process flow Fabrication Civil Foundation Hospital Building Tube Manufacturing Tubes are sand blasted, Civil Foundation & Arrangement Production of 6,000 ton ERW Hospital then connected using of anchor bolts at site to install tubes per day at plants of APL connectors tube colum
Slide 34: Completed Delhi Hospital
Completed Delhi Hospital • GTB Nagar • Shalimar Bagh • Sultanpuri • Geeta Colony • Sarita Vihar • Raghuvir Nagar APL APOLLO TUBES 33
Slide 35: Ongoing Hospitals
Ongoing Hospitals • Mumbai • Imphal • Shillong • New Delhi APL APOLLO TUBES 34
Slide 36: Educational Projects
Educational Projects • National Sports University • IIT Roorkee • IP University • Amity University APL APOLLO TUBES 35
Slide 37: Educational Projects (contd..)
Educational Projects (contd..) • IILM University • Mathura Medical College • GLA University • Thapar University • Modern School APL APOLLO TUBES 36
Slide 38: Residential Projects
Residential Projects Army Housing, Delhi APL APOLLO TUBES 37
Slide 39: Commercial Projects
Commercial Projects • Orissa Tower 1 • Orissa Tower 2 • Triveni Mall, Bangaluru APL APOLLO TUBES 38
Slide 40: Railway Stations
Railway Stations • Andhra Pradesh • Karnataka • Maharashtra 1 • Maharashtra 2 • Telangana • Rajasthan 1 • Uttar Pradesh 1 • Bihar APL APOLLO TUBES 39
Slide 41: Railway Stations (contd..)
Railway Stations (contd..) • Rajasthan 2 • Uttar Pradesh 2 • West Bengal • Madhya Pradesh • Gujarat • Tamil Nadu • Maharashtra 3 • Uttar Pradesh 3 APL APOLLO TUBES 40
Slide 42: Airports Projects
Airports Projects • Rajasthan 1 • Uttar Pradesh 1 • Rajasthan 2 • Jammu Kashmir • Andhra Pradesh 1 • West Bengal APL APOLLO TUBES 41
Slide 43: Airports Projects (contd..)
Airports Projects (contd..) • Bihar • Uttar Pradesh 2 • Karnataka 1 • Karnataka 2 • Gujarat • Uttar Pradesh 3 • Haryana • Orissa • Andhra Pradesh 2 APL APOLLO TUBES 42
Slide 44: Industrial Projects
Industrial Projects • Shakya Warehouse • Star Cement • Joyce Agro • ABPL Shed APL APOLLO TUBES 43
Slide 45: Industrial Projects (contd..)
Industrial Projects (contd..) • Dujana Shed • Birla Cement • Carbon Circle APL APOLLO TUBES 44
Slide 46: Applications
Applications ● High Rise Buildings ○ Hospitals, Housing, Schools, Courts, Hotels/Malls/Offices ● Warehouses/Cold Storage/Food Parks 45 42mn sq. ft. 220,000 ton heavy structural steel projects Visibility ● Factory Buildings/Process Structures tubes ● Aviation Hangers Ongoing enquiries ● Data Centres
Slide 47: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 46
Slide 48: ESG- DJSI Scoring
ESG- DJSI Scoring DJSI percentile 86 80 56 2021 2022 2023 Score percentile (%) APL APOLLO TUBES APL APOLLO SCORED 86TH PERCENTILE IN 2023 We expect better score next year as we are improving on ESG parameters 47
Slide 49: 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 50: 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 51: 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 52: 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 53: 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 54: Our Leadership
Our Leadership Vinay Gupta Rahul Gupta Deepak Goyal Anubhav Gupta Director Director Director-Operations Chief Strategy Officer Sanjay Gupta Chairman & Managing Director APL APOLLO TUBES Ravindra Tiwari Chetan Khandelwal CK Singh Vaibhaav Sharma Chief Sales Officer Chief Financial Chief Operating Off
Slide 55: 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 56: Press release: FY24 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 FY24 FINANCIAL PERFORMANCE • Sales volume of 2.6mn Ton, +15% YoY • EBITDA of Rs11.9bn, +17% YoY • Net Pr
Slide 57: Press release: Q4FY24 financial performance highlights
Q4FY24 Financial performance highlights ➢ Sales volume was increased by 4% YoY/ 12% QoQ to 679k tons ➢ Revenue was increased by 8% YoY/ 14% QoQ to Rs47.7bn ➢ EBITDA was Rs2.8bn (unchanged QoQ/ 13% YoY decline) o EBITDA per ton was Rs4,132 (decreased by 17% YoY/ 11% QoQ) ➢ Net Profit was Rs1.7bn (up