Apollo Pipes Q2 Results Review - Outperformance To Continue: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Apollo Pipes Ltd. reported decent volume growth of 6.5% YoY and 7% QoQ to 15,465 tonne (three‐year compound annual growth rate 14%). However, decline in average selling price from Rs 143/Rs 152 in Q2 FY22/Q1 FY23 respectively to Rs 134/kg lead to a revenue decline of 5%QoQ and remained flattish YoY to Rs 2.07 billion. H1 FY23 volumes stood at 29,871 tonne, reporting a 20%YoY growth and revenue increased by 23% YoY to Rs 4.26 billion. During the quarter continuous fall in PVC resin prices resulted into inventory loss of Rs 150‐200 million which impacted the profitability of the company. Hence Ebitda/kg stood at Rs 2 versus Rs 18/Rs 14 in Q2 FY22/Q1 FY23 respectively. H1 FY23 Ebitda/kg came in at Rs 8 as compared to Rs 17 in H1 FY22. Apollo Pipes' channel inventory continued to remain at lower levels as dealers resorted to de‐stocking on account of constant fall in PVC prices. During the quarter building materials constituted 55% of the revenue and value‐added products share stood at 60%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apollo Pipes Q2 Results Review - Outperformance To Continue: Yes Securities

We expect company’s volume and revenue growth to come in at 20% and 22% respectively over FY22‐FY24E.

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