APL Apollo Tubes Limited - Q3 FY24 Sales Volume Update

APL Apollo Tubes Limited (APL Apollo), the World's largest branded structural steel tube company, today announced its sales volume performance for Q3FY24. The Company registered a sales volume of 6,03,659 Ton in Q3FY24 compared to 6,05,049 Ton in Q3FY23 and 6,74,761 Ton in Q2FY24.

For 9MFY24, the company reported sales volume of 19,39,921 Ton, an increase of 19% YoY. The Q3FY24 sales volume declined QoQ due to channel de-stocking in anticipation of steel price correction. In the first two months of Q3FY24, the global steel prices had fallen 12% from the peak levels.

A few highlights for Q3FY24:

1) The contribution from value-added segment has increased to 59% in Q3FY24. APL Apollo's strategy of de-commoditization is intact.

2) The new Raipur plant ramp-up is on expected lines with utilization levels reaching 41% for Q3FY24 and 53% for December 2023.

3) We are encouraged to see strong sales growth in the heavy structural steel tubes as tubular construction is gaining momentum.

4) The Dubai plant also started production in December 2023. The initial results are encouraging with solid response from global steel tube distributors for APL Apollo's products.

The overall sales volume shall improve in the subsequent quarters as the signs for re-stocking are already visible post recent reduction in domestic steel prices.

Shares of APL Apollo Tubes Limited was last trading in BSE at Rs. 1525.55 as compared to the previous close of Rs. 1536.65. The total number of shares traded during the day was 11615 in over 1128 trades.

The stock hit an intraday high of Rs. 1560.00 and intraday low of 1510.90. The net turnover during the day was Rs. 17896432.00.

Source : Equity Bulls

Keywords

APLApolloTubes INE702C01027 Q3FY24 SalesVolume