APL Apollo Tubes Limited (APL Apollo), India’s leading branded structural steel tube company, today announced its sales volume performance for the quarter ending December 31, 2021. The Company registered a sales volume of 402,729 Ton in Q3FY22.
The Q3FY22 sales volume of 402,729 Ton declined QoQ due to: 1) channel de-stocking in anticipation of steel price correction and, 2) extended monsoons which impacted the construction activity. Moreover, the sales volume in general segment (commoditized sales) was impacted due to rise in price gap between primary steel and scrap steel which benefited the unorganized sector.
APL Apollo’s strategy is to constantly de-commoditize its product portfolio in coming years. The value added product portfolio contributed 65% in Q3FY22 vs 62% in Q2FY22 and 60% in Q3FY21. We are encouraged to see strong sales growth in the heavy structural steel tubes segment which should drive company’s margins going forward. With the commissioning and ramp-up of new Raipur plant, the sales mix would eventually move towards 75% for value added products.
Shares of APL Apollo Tubes Limited was last trading in BSE at Rs. 999.75 as compared to the previous close of Rs. 996.20. The total number of shares traded during the day was 8740 in over 744 trades.
The stock hit an intraday high of Rs. 1008.45 and intraday low of 987.80. The net turnover during the day was Rs. 8724521.00.