Q4 2025 APL Apollo Tubes Ltd Earnings Call Transcript
Key Points
- APL Apollo Tubes Ltd (BOM:533758) achieved a sales volume of 3.1 million tons for FY25, making it the world's largest downstream player outside China.
- The company closed its balance sheet with net cash exceeding €300 million as of March 31, 2025.
- Operating cash flow to EBITDA exceeded 100%, showcasing strong cash flow management.
- APL Apollo Tubes Ltd maintained almost zero working capital days for the fifth consecutive year, enhancing cash flow generation.
- The company plans to expand its capacity to 7 million tons over the next three years, funded by internal cash flow, indicating strong growth prospects.
- The return on capital (ROC) for FY25 was 25%, slightly lower than the previous year.
- The company faced depressed EBITDA spreads, closing the year with INR 3900 per ton, below the target of INR 4000.
- The steel price decline led to inventory losses, impacting financial performance.
- Capacity utilization in the heavy structural segment was only 60%, indicating underutilization.
- The company faces challenges from weak macroeconomic conditions, low government infrastructure spending, and global trade uncertainties.
Ladies and gentlemen, good day and welcome to the APL Apollo Tubes Limited Q4 FY25 post-results earnings con call hosted by Batlivala & Karani Securities India Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sailesh Raja from Batlivala & Karani Securities India Private Limited. Thank you and over to you, sir.
Good evening, all. On behalf of B&K, I would like to thank everyone for joining APL's Q4 FY25 earnings conference call. We are pleased to have with us today Mr. Sanjay Gupta, Chairman and Managing Director; Mr. Deepak Goyal, Director of Operations; Mr. Anubhav Gupta, Chief Strategy Officer; and Mr. Chetan, Group CFO of the company.
I will now hand over the call to Mr. Anubhav Gupta for his opening remarks, following which we'll open the floor for the Q&A. Over to you, sir.
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