During Wednesday’s trading session, shares of India’s leading structural steel tube manufacturer surged nearly 4 percent on BSE, after reporting Q4 FY25 financial results with a net profit growth of around 35 percent QoQ and 72 percent YoY.
With a market capitalisation of Rs. 46,148 crores, the shares of APL Apollo Tubes Limited closed in the green at Rs. 1,662.85 on BSE, up by nearly 3 percent, as against its previous closing price of Rs. 1,614.55. The stock has delivered positive returns of around 8 percent in one year, and has gained over 15 percent in last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, APL Apollo Tubes Limited announced the financial results for Q4 FY25 on Wednesday during market hours.
For Q4 FY25, APL Apollo Tubes reported a consolidated revenue from operations of Rs. 5,508.6 crores, reflecting a growth of around 1.4 percent QoQ from Rs. 5,432.7 crores in Q3 FY25, and a year-on-year rise of around 16 percent from Rs. 4,765.7 crores in Q4 FY24.
The net profit increased to Rs. 293 crores in Q4 FY25, marking a nearly 35 percent QoQ rise from Rs. 217 crores reported in the previous quarter, and around a 72 percent YoY rise compared to Rs. 170.4 crores in Q4 FY24.
Additionally, EBITDA grew to Rs. 413.7 crores in Q4 FY25, representing a 20 percent rise from Rs. 345.6 crores reported in the previous quarter, as well as a nearly 47 percent rise compared to Rs. 280.4 crores in Q4 FY24. Further, the company’s Board recommended a final dividend of Rs. 5.75 per equity share of face value of Rs. 2 each (287.5 percent) for FY25.
Capex Plans
The Board of APL Apollo Tubes has approved a capital expenditure plan, including maintenance capex, estimated at around Rs. 1,500 crore, to be deployed over the next three years by the company and/or its wholly owned subsidiaries.
The investment aims to support a capacity expansion of 2.3 million tonnes, increasing the overall capacity from 4.5 million tonnes to 6.8 million tonnes, with a target to achieve the expanded capacity by FY28. The company’s existing plants are currently operating at optimal capacity utilisation.
This capex will be used for enhancing the manufacturing capabilities across existing and/or new facilities, aligning with the company’s long-term strategic growth plans and to meet rising market demand.
About the company
APL Apollo Tubes Limited, the largest producer of Structural Steel Tubes in India, is engaged in the business of the production of ERW steel tubes. Its multi-product offerings include varieties of pre-galvanised tubes, structural steel tubes, galvanised tubes, MS black pipes and hollow sections, making APL Apollo one of the leading branded steel products manufacturers in India.
APL Apollo Tubes Limited is widely recognised as a market leader in the steel tube manufacturing sector in India. The company has achieved significant market dominance in the domestic market of steel construction pipes, currently holding around 55 percent of the market share in FY24.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
