Q3 2025 Apollo Pipes Ltd Earnings Call Transcript
Key Points
- Apollo Pipes Ltd (BOM:531761) achieved its best-ever quarterly performance in terms of sales volume, reaching 27,000 metric tonnes, marking a 43% YoY and 34% QoQ growth.
- The company remains debt-free despite incurring a CapEx of INR430 crores over the last seven quarters, demonstrating strong financial management.
- Apollo Pipes Ltd (BOM:531761) plans to invest INR400 crores over the next three years to expand capacity, with funding support from Kitara Capital, which is investing at a 30% premium to the current market price.
- The company expects significant contributions from new revenue drivers, including the PVCO pipe segment, Window Profile product segment, and the Varanasi plant, which are anticipated to boost volumes in Q4 and FY26.
- Apollo Pipes Ltd (BOM:531761) is confident of achieving a 25% ROCE in the next two years, driven by increased sales volume and margin improvements.
- Profitability was negatively impacted in Q3 due to a decline in EBITDA margin, primarily due to Kisan consolidation.
- Higher depreciation costs have further pressured net margins, although the company expects margins to improve with increased capacity utilization.
- The macro environment remains weak, affecting demand, particularly in the water infrastructure segment, which has not yet revived.
- There is ongoing pressure on selling prices due to sluggish macro factors, which may affect margin improvements.
- The company faces competitive challenges in the oPVC segment, with new entrants and potential disruptions from Chinese manufacturers.
Ladies and gentlemen, good day, and welcome to Apollo Pipes conference call hosted by Emkay Global Financial Services. (Operator Instructions) Please note this conference call is being recorded. I now hand the conference over to Mr. Harsh Pathak, Emkay Global Financial Services.
Thank you, and over to you.
Thank you, Yashasvi, and good morning, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Sameer Gupta, Chairman and Managing Director; Mr. Arun Agarwal, Joint Managing Director; Mr. Ajay Kumar Jain, Chief Financial Officer; and Mr. Anubhav Gupta, Group Chief Strategy Officer.
I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.
Thank you. Good morning, everyone. This is Sameer Gupta, CMD, Apollo Pipes here. I, along with my colleagues, Arun Agarwal, JMD; A
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