APL Apollo Q3 Results | Net profit surges 31% to ₹217 crore, revenue jumps 30% to ₹5,432 crore

Steel products maker, APL Apollo Tubes Ltd on Monday (January 20) reported a 30.7% year-on-year (YoY) surge in net profit at ₹217 crore for the third quarter that ended December 31, 2024.

In the corresponding quarter of the previous fiscal, APL Apollo Tubes posted a net profit of ₹166 crore, the company said in a regulatory filing. The company's revenue from operations jumped 30% to ₹5,432 crore as against ₹4,177 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA was up 23% to ₹346 crore in the third quarter of this fiscal over ₹281 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 6.4% in the reporting quarter as compared to 6.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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APL Apollo recorded a sales volume of 828,000 tonne in Q3FY25, marking a 37% year-on-year and 9% quarter-on-quarter increase. The value-added sales mix improved to 56% during the quarter, compared to 55% in Q2FY25.  The company reported an EBITDA per tonne of ₹4,173, which reflected a 10% year-on-year decline but a significant 129% quarter-on-quarter growth. Cash profit stood at ₹2.7 billion, representing a 26% year-on-year and 166% quarter-on-quarter increase.

Interest costs for the quarter amounted to ₹368 million, rising 29% year-on-year and 1% quarter-on-quarter. APL Apollo's net working capital days for the nine months ended FY25 stood at 2 days, up from 1 day in FY24. Return on capital employed (ROCE) and return on equity (ROE) for 9MFY25 were 20.7% and 16.4%, respectively, compared to 29.5% and 22.2% in FY24.

For the nine months that ended FY25, APL Apollo achieved a cumulative sales volume of 2,308,000 tonne, reflecting a 19% year-on-year growth. The company reported revenues of ₹15,180 crore, a 14% year-on-year increase. However, EBITDA for the period stood at ₹790 crore, showing a 14% year-on-year decline. Net debt at the end of 9MFY25 was ₹100 crore, a reversal from a net cash position of ₹18 crore in FY24.

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Sanjay Gupta, Chairman of APL Apollo, said, "The company has reported its best-ever quarter, achieving record-high quarterly sales volume, EBITDA, and PAT. This strong performance came despite a challenging macroeconomic environment, weak retail demand and ongoing slowdown in government infrastructure spending. For 9MFY25, the company's volume increased 19% YoY, which is far ahead of overall industry growth."

The results came after the close of the market hours. Shares of APL Apollo Tubes Ltd ended at ₹1,595.00, up by ₹26.80 or 1.71% on the BSE.