APL Apollo Tubes Q3 Review - Margin Beat; Strong Volume Growth Ahead: IDBI Capital  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

APL Apollo Tubes Ltd. reported better than expected profitability for Q3 FY21 as its Ebitda was 27% higher than our estimate.

The Ebitda/tonne at Rs 4,780 (up 43% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/ tubes. The company’s Ebitda jumped 45% YoY to Rs 2.3 billion.

Higher operating cash flow for nine-months FY21 at Rs 8.5 billion (Rs 5.1 billion in FY20) and fall in net working capital days to eight days by Q3 FY21 led to net debt falling to Rs 2 billion by Q3 FY21 from Rs 8 billion in FY20.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.