APL Apollo conducted their earnings con-call today at 2:00 pm
"Vision of capacity of 4 Million Tone till 2025"
@hiddengemsindia @gvkreddi
Here are the key highlights 😀👇
Business Updates:
• Net Working Capital Remains under 10 days which is best in the building material
• Continue expanding rural region.
• Added 15 new distributors.
• Value added products contributed 50-60% of the topline.
Revenue breakup
• EBIDTA Margin Improvement: This was mainly because of cost structarize and better operational
• Working Capital Cycle as per mgmt should remain sustainable
• Blue Ocean: Company owns 100% subsidiary which contributes nothing but own property where corporate office is there
Improvement in Net Selling Realization:
• With expanding capacities at 2.6Million Tones and utlization of 75%, scalability has been affected.
• While the prices of steel has gone by by around 35%, due to shortage of steel.
• Apl Apollo being the dominant player past connection with steel companies worked well.
• Steel tubes supply from China is shrinking.
• Hence the discounting factor while selling the products has went away.