Slide 1: Exchange filing cover letter
29th October 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: Q2FY25 Earnings presentation
Q2FY25 Earnings presentation
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 • Q2FY25 at glance • Financial Performance • Business Strategy • New Initiatives • ESG Engagement APL APOLLO TUBES • Team APL Apollo 3
Slide 5: Q2FY25 at a Glance
Q2FY25 at a Glance 758k Ton ₹ 47.7 Bn ₹1.4Bn ₹ 1,821 Sales Volume Revenue EBITDA EBITDA/ton 12% YoY increase 3% YoY increase 58% YoY decline 62% YoY decline 5% QoQ increase 4% QoQ decline 54% QoQ decline 56% QoQ decline 55% ₹364 Mn ₹0.5Bn ₹ 1.0Bn Value Added Sales mix Interest Cost Net profit Cash p
Slide 6: H1FY25 at a Glance
H1FY25 at a Glance 1,479k Ton ₹ 97.5 Bn ₹4.4Bn ₹ 2,972 Sales Volume Revenue EBITDA EBITDA/ton 11% YoY increase 6% YoY increase 30% YoY decline 37% YoY decline 58% ₹642 Mn ₹2.5Bn ₹ 3.4Bn Value Added Sales mix Interest Cost Net profit Cash profit H1FY24 was 56% 19% YoY increase 38% YoY decline 29% YoY
Slide 7: Highest ever Quarterly Sales Volume
Highest ever Quarterly Sales Volume Profit & Loss (Rs Mn) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Sales Volume (k Ton) 403 552 423 602 605 650 662 675 604 679 721 758 Revenue 32,304 42,147 34,386 39,692 43,271 44,311 45,449 46,304 41,778 47,657 49,743 47,7
Slide 8: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES 7
Slide 9: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Application Sales Sales Sales Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton (%) (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 FY21 FY22 FY23 FY24 H1FY25 capacity Capacity Product Application Sales Sales Sales Sales Sales Category Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton Mix Vol. EBITDA/Ton (KTon) (KTon) (%) (KTon) (Rs) (%) (KTon) (R
Slide 11: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rs Mn) 758 3,250 721 3,016 675 679 2,796 2,804 604 1,380 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 EBITDA/Ton (Rs) Net Profit (Rs Mn) 4,817 4,631 2,029 1,932 APL APOLLO TUBES 4,132 4,183 1,655 1,704 1,821 538 Q2FY24 Q3FY
Slide 12: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 34.6 28.9 29.2 29.5 24.8 23.5 26.5 22.2 16.6 13.3 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 9 19.7 7 13.9 5 9.3 9.6 3 2.5 1 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H
Slide 13: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) Net Debt/EBITDA (x) 0.3 11.2 0.2 0.2 9.8 9.7 0.2 6.5 1.5 -0.0 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Net Debt (Rs Bn) APL APOLLO TUBES Net Debt/ Equity (x) 3.0 2.4 2.0 0.1 0.1 0.1 0.1 1.6 Net Net cash cash -0.0 -0.2 FY21 FY22 FY
Slide 14: Growing Strength to Strength
Growing Strength to Strength Operating Cashflow to EBITDA (%) Capex to Op. Cash flow (%) 264 144 95 94 69 90 87 59 18 29 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 FCF (Rs Bn) Du-Pont ROE (%) 5 APL APOLLO TUBES 28 4 6.1 21 3 0.4 3.6 14 2 -0.6 7 1 -3.4 0 0 FY20 FY21 FY22 FY23 FY24 H1FY25 N
Slide 15: EBITDA/Ton Bridge
EBITDA/ Ton Bridge (INR/Ton) EBITDA/Ton Bridge 5040 4,183 - 493 - 1,981 111 1,821 APL APOLLO TUBES EBITDA/Ton in Sales discount Inventory loss Operating EBITDA/Ton in EBITDA/ Ton Q1FY25 leverage Q2FY25 target by FY27 14
Slide 16: Cash Flow Bridge
Cash Flow Bridge (Rs Mn) 2,000 1,000 1,540 -4,067 185 - (Rs Mn) -1,000 -2,975 -2,000 -3,000 -111 -522 APL APOLLO TUBES -4,000 Net cash in FY24 Op Cash flow Capex Investments Dividend & Net debt in others H1FY25 Business continues to Capex being funded from generate strong Net cash balance sheet inte
Slide 17: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rs Mn) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Sales Volume (K Ton) 675 604 679 721 758 1,336 1,479 Net Revenue 46,304 41,778 47,657 49,743 47,739 91,753 97,482 Raw Material Costs 39,784 35,854 41,326 42,697 42,419 78,991 85,116 Employee Costs 6
Slide 18: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow (Consol) Balance Sheet - Assets (Rs mn) FY24 H1FY25 Cashflow Statement (Rs mn) FY24 H1FY25 Cash & Bank Balance 11,430 7,045 EBITDA 11,922 4,397 Receivables 1,391 2,245 Change in receivables -1 -885 Inventories 16,379 16,792 Change in inventory -1595 -421 Other current asset
Slide 19: Demand Drivers
DEMAND DRIVERS 18
Slide 20: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix 4% 13% Housing Commercial buildings 19% Infrastructure 64% Others APL APOLLO TUBES *As per Q1FY25 revenue 19
Slide 21: India Structural Steel Tube market potential
India Structural Steel Tube market potential Structural steel tubes as % of steel market Crude steel production in India (Mn Ton) Structural steel tubes in India (Mn Ton) (FY24) 17.3 11 210 9 9 8 8 7 139 6.5 9.0 Global Europe LAT-AM Japan Middle North India FY24 2030E FY24 2030E East America Structu
Slide 22: New proposed plants for higher market penetration
New proposed plants for higher market penetration Location for Incremental Market Capacity Target Market Greenfield Plants opportunity 1. Gorakhpur 110,000 Ton Eastern UP, Bihar and 1 Eastern UP Nepal 2 West Bengal, 2. Siliguri 1.5 Mn Ton 200,000 Ton Jharkhand, 7 Sister State West Bengal and Bhutan
Slide 23: APL Apollo HRC Tube vs Patra pipe price
APL Apollo HRC Tube vs Patra pipe price Indian HRC prices (INR) India HRC Capacity (Mn Ton) 65,000 78 66 62 53 55 50,000 47 35,000 20,000 2020 2021 2022 2023 2024F 2025F 9MFY24 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q4FY24 Q1FY25 Q2FY25 APL Apollo HRC Tube vs Patra Pipe (INR/Ton) APL APOLLO TUBES 7
Slide 24: Solar structure opportunity for structural tubes
Solar structure opportunity for structural tubes Annual solar Annual APL Apollo Products installation by Segments Products market Solar structure opportunity 2030 size by 2030 Market opportunity 33.3GW for APL Apollo 830,000 Ton Solar power products by 2030 1. Residential 14.5GW Tubes 360,000 Ton Ro
Slide 25: 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 26: Applications for Heavy Structural Steel Tubes
Applications for Heavy Structural Steel Tubes ● High Rise Buildings ○ Hospitals, Housing, Schools, Courts, Hotels/Malls/Offices ● Warehouses/Cold Storage/Food Parks 50 50mn sq. ft. 220,000 ton heavy structural steel projects Visibility ● Factory Buildings/Process Structures tubes ● Aviation Hangers
Slide 27: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 26
Slide 28: 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 27
Slide 29: Scope & emissions by 25% by 2030; Net Zero by 2050
Scope 1 & 2 emissions by 25% by 2030; Net Zero by 2050 Scope of Purchased goods Planned Initiatives: and services expanded to • RE installations in GHG Inventory include raw materials ABPL plant calculated for (Steel Coils) • RE expansions in Scope 1, 2, 3 and New Raipur New Raipur and set as baseli
Slide 30: Scope & emissions by 25% by 2030; Net Zero by 2050
Scope 1 & 2 emissions by 25% by 2030; Net Zero by 2050 Renewable Electricity Consumption (GJ) Trend of GHG Emissions over past 3 years 732,067 Grid Electricity Scope 1 (MTCO2e) Scope 2 (MTCO2e) Scope 3 (MTCO2e) Renewable Electricity FY 2021-22 24,486 66,349a 42,661 FY 2022-23 29,260 59,436 47,535 47
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: Press release: Q2FY25 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 Q2FY25 Financial Performance • Record Sales volume of 7,58,267 Ton • EBITDA of Rs1.4bn • Net Profit of R
Slide 39: Press release continued: About APL Apollo Tubes Limited
experience to further enhance our leadership. We continue to remain prudent with our working capital management, which remains best in the construction material sector” About APL Apollo Tubes Limited APL Apollo Tubes Limited (APL Apollo) BSE: 533758, NSE: APLAPOLLO is India’s leading structural stee