Apollo Pipes conducted conference call for Q4 FY22.
"Mgmt is looking for 30% CAGR sales from FY23 to FY25, driving major growth in building segment"
Mgmt expect 15-20% volume growth & 10% value growth.
Here are the concall highlights
👇🧵
"Mgmt is looking for 30% CAGR sales from FY23 to FY25, driving major growth in building segment"
Mgmt expect 15-20% volume growth & 10% value growth.
Here are the concall highlights
👇🧵
Business Updates:
• Sales volume increase by 26% reaching to 16,409MT.
• CPVC pipes and value added products were the major growth driver, due to expanding product portfolio, increasing geographies reaching and increasing capacity.
• Tiger Shroff is now the Brand Ambassador.
• Sales volume increase by 26% reaching to 16,409MT.
• CPVC pipes and value added products were the major growth driver, due to expanding product portfolio, increasing geographies reaching and increasing capacity.
• Tiger Shroff is now the Brand Ambassador.
Business segment:
• Agri : Building Mix: 50:50 which was 60:40 last year.
• With strong growth in CPVC, bathroom fitting the mix is expected to be 65% from Building Mix.
• Mgmt expects the sales to grow much more if the agri segment grows well.
• Agri : Building Mix: 50:50 which was 60:40 last year.
• With strong growth in CPVC, bathroom fitting the mix is expected to be 65% from Building Mix.
• Mgmt expects the sales to grow much more if the agri segment grows well.
Capacity:
• In agri segment the capacity is 125K tones and co. only did 53K Tones. Co. would increase the utilization, but it won't be in cost of margins and increasing working capital cycle.
• Capacity Utilization: 45%
Region wise growth:
- North: 30-35%
- East & West: 50%+
• In agri segment the capacity is 125K tones and co. only did 53K Tones. Co. would increase the utilization, but it won't be in cost of margins and increasing working capital cycle.
• Capacity Utilization: 45%
Region wise growth:
- North: 30-35%
- East & West: 50%+
Margins:
• Over next year, mgmt expect EBIDTA margins to remain at this level.
• Mgmt targets on EBIDTA per tone level.
• Mgmt guides for 13-14% EBIDTA level and 20,000 EBIDTA per ton level.
• Over next year, mgmt expect EBIDTA margins to remain at this level.
• Mgmt targets on EBIDTA per tone level.
• Mgmt guides for 13-14% EBIDTA level and 20,000 EBIDTA per ton level.
Product Mix:
• CPVC & Fitting shares around 15% of revenue each.
• Channel distribution between bath fitting business and pipes business is almost same.
• Tank Business is 4.5% of revenue.
• Building products revenue share is value added.
• CPVC & Fitting shares around 15% of revenue each.
• Channel distribution between bath fitting business and pipes business is almost same.
• Tank Business is 4.5% of revenue.
• Building products revenue share is value added.
CAPEX:
• Mgmt focus on next phase of capex from internal accruals.
• Mgmt is also adding capacity in the existing facilities to improve the volume growth.
• Capacity utilization, leverage from Apollo brand & improving product bring the targets of revenue.
• Mgmt focus on next phase of capex from internal accruals.
• Mgmt is also adding capacity in the existing facilities to improve the volume growth.
• Capacity utilization, leverage from Apollo brand & improving product bring the targets of revenue.
Other:
• Inventory impacted WC due to war scenario and raw material volatility. Mgmt targets to bring the WC below 50 days in FY22 and 45 days in FY23. Mgmt expect Trade Payable days to be in ~30 days.
• Co. is adding employees in sales team to reach 200 employees.
• Inventory impacted WC due to war scenario and raw material volatility. Mgmt targets to bring the WC below 50 days in FY22 and 45 days in FY23. Mgmt expect Trade Payable days to be in ~30 days.
• Co. is adding employees in sales team to reach 200 employees.
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