Is Apollo Pipes a Multibagger in Indian Irrigation Story?

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Company Overview:

Apollo Pipes Ltd is one of the key group companies of Sudesh Group which also owns Apollo Tubes.

The company manufactures a wide variety of PVC pipes and related products used for civil infrastructure, industrial, agriculture, building, and construction purposes.

Apollo Pipes also manufactures a plastic water storage tank. The company is headquartered in Delhi and among the market leader in the piping and related products segment under the brand name of APL Apollo.

Apollo Pipes
Apollo Pipes

With more than three decades of experience in the Indian pipe market, the company witnessed strong fundamentals for growth in the pipe industry in India.

The company started manufacturing of U-PVC pipes in the year 2000, with a capacity of 3,600 MT per annum.

Since then, Apollo Pipes has undergone massive manufacturing and distribution expansion of 2,400 MT per annum of CPVC pipes and a wide range of other high end related products.

Altogether, the company has 19 extrusion lines with a capacity of consuming 60,000 tons of polymers annually. Apollo Pipes has the largest manufacturing unit at a single location under one roof in North India. APL Apollo group proudly owns the largest company-owned/operated network of warehouses-sum-sales offices across the country.

The PAN India presence is the backbone that strengthens the structured growth that we targeted for itself. Apollo Pipes manufactures CPVC, PVC, and HDPE pipes and fittings of the highest quality.

Apollo Pipes has the most versatile products range right from 15 mm to 400 mm in diameter.

APL Apollo pipes are participating in irrigating millions of hectares of cultivable land of India through PVC pipes, casing pipes, column pipes, and sprinkler piping solutions.

The company’s products meet the requirements for infrastructure sectors like transport of oil and gas transmission.

To meet the demand for this sector APL provides solutions through HDPE pipes and fittings, PLB Ducts, PVC pipes. The pipes manufactured by APL Apollo Pipes have Zero leaks and thus are considered highly rated among consumers. Apollo Pipes has 84,000 MTPA manufacturing capacity.

The company is looking forward to achieving the internal production target of 1,00,000 metric Tonnes by 2021. The company is part of the Sudesh group of Industries (APL Apollo Tubes).

APL Apollo tubes produce 1.1MT of black pipes, hollow section, and GI pipes which largest in India.

Apollo Pipes plans to invest Rs 20-25 crore in its business every year. In north India Apollo pipes is the first company to install an extrusion line of 900 kg/hour.

The company has three manufacturing plants. In 2019-20, the company acquired the Bangalore-based manufacturing unit of Kisan moldings Ltd. Sprawled over 7 acres of land, the unit has an installed capacity of rest, of which 10,000 MTPA is for UPVC pipes and 2,000 MTPA id for CPVC pipes.

Apollo Pipes commenced the operation at this unit in January 2020. For 5 years period, the company has sales volume at 14% CAGR, EBITDA at 24% CAGR, and PAT at 29% CAGR.

The company manufactures around 1,000+ products. Its three manufacturing units are located at Dadri in Uttar Pradesh, Ahmedabad in Gujarat, and Bengaluru in Karnataka.

Manufacturing Units of Apollo Pipes

1) Dadri Unit:

This is the largest manufacturing unit at a single location in North India and the flagship unit of Apollo Pipes. Apollo Pipes is implementing 60,000 TPA brownfield expansion.

Production Capacity at Dadri Unit ( MTPA):

Product Category

Capacity

UPVC Pipes

46,000

CPVC Pipes

2,000

HDPE Pipes

7,000

Fittings, Taps & Faucets

5,000

Total

60,000

2)Bengaluru Unit:

The most recent addition to the company’s fold, this unit was acquired from Kishan Mouldings Ltd. Apollo Pipes is setting up a manufacturing line for its Fittings products.

Production Capacity at Bengaluru Unit (MTPA):

Product Category

Capacity

UPVC Pipes

10,000

CPVC Pipes

2,000

Total

12,000

3)Ahmedabad Unit:

Started in 2018, this unit caters to the large and rapidly growing western markets. Apollo Pipes is implementing a brownfield expansion that would be commercialized in the next 12-18 months.

Product Capacity at Ahmedabad Unit (MTPA):

Product Category

Capacity

UPVC Pipes

12,000

Besides these units, the company is bringing a new manufacturing unit at Raipur in Chattisgarh.

Presence of Apollo Pipes Across Different Sectors:

1) Agriculture Segment: casing pipes, drip irrigation & sprinkler system.

2) Oil & Gas Segment: conveying edible oils and chemicals & corrosive fluids.

3) Water Management Segment: Hot & cold potable water distribution & transportation, Residential, commercial installation.

4) Construction Segment: bore well pipes, sanitation & sewage pipes, plumbing pipes.

5) Telecom Ducting Segment

Distribution Network of Apollo Pipes

Apollo Pipes has 150+ distributors and 450+ dealers and retailers. The company’s extensive distribution network significantly reduced its delivery time to 48 hours from 10-12 days.

Apollo Pipes is aiming to increase its product range from 1000+ products to 2000+ products. Apollo Pipes launched plastic faucets, taps, and showers in the domestic market to drive higher brand visibility through new products.

Product Revenue (excluding Others segment) Break-up – FY20:

Product

Revenue (%)

UPVC Pipes

69

CPVC Pipes

5

HDPE Pipes

9

Fittings

16

Product-wise Revenue Breakup (Rs crores) of Apollo Pipes:

Particulars

Q4 FY20

Q4 FY19

Y-o-Y Shift

FY20

FY19

Y-o-Y Shift

UPVC Pipes

56.4

61.9

-9%

277.4

269.1

3%

CPVC Pipes

6.6

4.7

40%

21.4

13.5

59%

HDPE Pipes

12.3

6.1

101%

35.7

23.1

55%

Fittings

17.1

14.2

20%

65.3

48.0

36%

Others

1.8

2.6

-32%

8.1

8.2

-1%

Total

94.1

89.4

5%

408.0

361.8

13%

Demand Segmentation – Domestic Industry:

Segment

Demand (%)

Irrigation

45

Plumbing

38

Sewerage

12

Others

5

Demand Split – Domestic Industry:

Particulars

Demand (%)

New Demand

65

Replacement Demand

35

PVC Pipes by Apollo Pipes

The Indian PVC Pipes and fittings market continues to grow and is anticipated to register a double-digit CAGR of around 14.7% by revenue between FY2018-FY2026.

By FY2026 Indian PVC market is expected to reach Rs 560 billion.

For its chemical properties, durability, low cost, and others, PVC has the advantage of replacing wood, metal, concrete, and clay in different applications.

They are also corrosion-resistant, flame resistant, and easy to install & handle. The plastic pipes and fittings market is segmented into UPVC, CPVC, HDPE LDPE, PPE ns others.

PVC pipes can withstand rigorous shaking and extreme movement in an earthquake-prone zone. Owing to these factors, PVC pipes are constantly replacing other piping materials across the world.

THE global PVC pipes market reached a volume of 23.9 million tonnes in 2019.

At present North India is expected to continue the lead the Indian PVC pipe market, growing at the highest CAGR of 10.1%.

East India is projected to register the highest growth rate in terms of value during FY2018-FY2026.

East India is projected to grow at the highest CAGR of 11.1% followed by West India at 10.7% during FY2018-FY2026 owing to new infrastructure projects and developments in the parts of the region.

HDPE Pipes by Apollo Pipes:

The Indian HDPE Pipe market size was valued at USD 99.9 million in 2018 and is expected to reach USD 233.5 million by 2026 registering a CAGR of 11.2% from 2019 to 2026.

The increase in demand for electricity in India has enforced players operating in the power sector to increase their existing capacity of energy generation.

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The increase in existing capacity refers to the expansion of energy generation infrastructure, which correspondingly surges the demand for HDPE pipes and ducts.

The government of India has aimed to manage the supply-demand gap, as there will be a continuous increase in demand for electricity from the industrial sector of India in the future.

India is also committed to clean energy and reduce carbon emissions, owing to which it is one of the significant players in the renewable energy sector.

India’s increased focus on renewable energy is outlined in the national budget that aims at the increasing share of renewable energy in total energy production.

The target is to increase production to 175 MW by 2022. This includes 100 GW solar, 60 GW wind, 10 GW biomass, 5 GW small hydropower capacity.

All the above-mentioned factors will have a positive impact on the HDPE pipe market as HDPE pipes and ducts are significantly used in power plants especially in renewable energy plants.

The global HDPE pipe market was valued at USD 17,907 million in 2017 and is projected to reach USD 25,518 million by 2025, growing at a CAGR of 5% from 2018 to 2025.

In India agriculture is driving demand for the PVC pipe industry since it contributes the highest share of around 45% due to irrigation activities.

A healthy rabi crop, coupled with payments to farmers from the government has boosted demand for Agri PVC pipes. Over the last week, resin prices increased twice by Rs 2 per kg each, which makes organized players believe that PVC resin prices have bottomed out, and they do not expect any price cuts in the future.

All organized players have increased PVC pipes prices by 4-5% after the resin price increase.

The ongoing consolidation in the PVC pipes industry should intensify as unorganized/regional players are finding it increasingly difficult to sustain business in the current COVID-19 scenario.

This will give benefits to organized players like Apollo Pipes.

Irrigation is the main contributor to PVC pipes.

There are two types of irrigation Drip Irrigation and Sprinkler irrigation. Both require PVC pipes. Without pipes, no irrigation can take place.

Type:

Sprinkler Irrigation

Drip Irrigation

Pumping unit, tubing, couplers, Spray/Sprinkler heads, fittings and accessories and others

Valves, backflow preventers, pressure regulators, filters, emitters, tubing, other drip irrigation

The Indian government approved initial aggregation of USD 702.3 million for setting up a micro-irrigation Fund in 2018, along with the national bank of agriculture and rural development.

The government offered a 35% to 45% subsidy for drip irrigation systems.

Also Watch: Apollo Pipes – Can It Be a Multibagger?

Area Under Micro Irrigation Fund:

Micro Irrigation

Area Covered Under The Scheme

(2019-2020)

Drip Irrigation

5.75 lakh Ha

Sprinkler Irrigation

5.83 lakh Ha

Total

11.58 lakh Ha

The world is facing the problem of water so by using irrigation facilities less water will be used. And in all irrigation facilities, PVC pipes are used.

Response Of Different Crops To Micro Irrigation:

Crops

% Water Saving

Banana

45

Cauliflower

68

Chilly

68

Cucumber

56

Grapes

48

Ground Nut

40

Pomegranate

45

Sugarcane

50

Sweet Lime

61

Tomato

42

Apollo pipes also produces Sprinkler irrigation systems in a very small percentage.

The global sprinkler irrigation market size is anticipated to reach USD 2.91 billion by 2027 from USD 2.57 billion in 2019 growing at a CAGR of 1.67%.

The global micro irrigation system is projected to reach USD 23.4 billion by the end of 2026, growing at a CAGR of 12.2% during 2019-2026.

In India, flood irrigation delivers only 35-40% water use efficiency, as opposed to micro-irrigation which has up to 90% efficiency. India has 21.1 million hectares for drip and 50.22 million hectares of sprinkler irrigation.

Faucets:

Apollo pipes also manufactures Faucets.

The global Faucet market size was valued at USD 37.8 billion in 2019 and is estimated to reach USD 61.4 billion by 2026, registering a CAGR of 7.45% from 2020 to 2026.

The rise in the nuclear family has resulted in fewer extended family living arrangements and a gradual increase in household units has increased the demand for faucets.

In 1850, almost 70% of people aged 65% and above lived with their adult children.

By 2000, about 15% stayed, and by 2029 about 9-10% stayed. These demographic changes reflect more fundamental societal changes such as industrialization, urbanization, rise in living standards, and constricted immigration that has led to an increasing in households across the globe.

Government of various countries across the globe have introduced various schemes to provide concrete homes to people in the middle class and lower income group.

The government of India aims to develop about 11 crores housing units, including developments to counter the current shortage of 6 crore units. Besides, the government plans to provide housing to all Indian citizens by 2022.

The faucets in the bathroom segment will witness the growth of CAGR of 8.2% from 2020-2026.

Plastic segment faucets would witness the growth of CAGR of 9.9% from 2020-2026. Faucets in the commercial segment will witness a growth of CAGR 12.8% from 2020-2026.

Asia – Pacific would witness the fastest faucet growth, registering a CAGR of 8.1% from 2020 to 2026.

Plastic Water Storage Tanks by Apollo Pipes:

Apollo Pipes also manufactures plastic water storage tanks.

The future of global plastic water storage tanks looks promising with opportunities in the sectors of residential, commercial, industrial, and municipal.

The global plastic water storage tank market is expected to reach an estimated USD 1.3 billion by 2024 with a CAGR of 3.4% from 2019-2024.

An emerging trend, which has a direct impact on the dynamics of the plastic water storage tank market, includes increasing demand for four-layered water storage tanks for protection from bacteria and fungus.

Rapid population growth has led to increased demand for drinking water in urban and areas as well as in national enterprises and utilities.

Water scarcity should be the most shocking result of global warming.

The United Nations said, about half of the world’s population could face a water shortage by 2035 when demand is expected to exceed supply by 40%. Increasing concern over the conservative use of water due to lack of drinking water in several regions has led to growth in the global market for water storage tanks.

Forecast For The Global Plastic Water Storage Tank Market (USD billion) (2014-2025)

2014

2019

CAGR (2014-2019) %

2024

CAGR (2019-2024) %

0.8

1.1

5.5

1.3

3.2

Opportunities for plastic water tank by various applications, polymers, size, plastic, type, and end-use:

Application

Polymers

Size

Plastic

Type

End-Use

Potable Water,

Water conservation,

Wastewater,

Plumbing and engineering solution

Polyethylene,

PVC

Less than 1000 liters,

1,001-5,000 liters, Above 5,000 liters

Fresh,

Recycled

Above Ground,

Under Ground

Municipal,

Industrial,

Commercial,

Residential

Growth Factors for PVC Pipe Industry:

Urban Infrastructure

Water Management

Agriculture Focus

• Infrastructure push – plumbing and distribution requirements

• Water Management, Waste Management, Water Drainage & Sewerage System

• ‘Housing for All’ scheme and the ‘Smart Cities’ scheme to drive demand

• GoI targeted construction of 20M and 40M houses in urban and rural areas, by 2022

– One unit in the urban area nearly consumes 200 kg of PVC products

– Rural house consumes ~75kg

• Rehabilitation of aging pipelines and installation of new pipes in the transportation of liquids offers a significant opportunity

• Government focus on providing clean water, clean cities with well-organized plans for sewage removal and efficient transport facilities

• National Rural Drinking Water Mission (NRDWM) to create a safe drinking water program

• Improving irrigation schemes for farmers

• Water Table Depletion – increase in bore well activities leading to higher demand for larger diameter pipes

• Increase in land under irrigation for food production

• Increasing agriculture focus will have better demand for irrigation and thus demand PVC pipes

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Growth Factors for Indian PVC Pipe Industry discussed in detail:

1)Vertical Farming or V-farming:

If one has a 1,000 sq ft plot of land, vertical farming on it yields a harvest which is equivalent to 3,000-4,000 sq ft of the plot.

Moreover, with a crop cycle of 3-4 times a year, the profits are substantial as compared to traditional farming. Vertical farming is a method to produce leafy vegetables and non-tree fruits where there is nearly no available arable land, these are grown in vertically stacked layers made of PVC pipes resembling a multi-storied building plant.

The plants are grown in a controlled environment under artificial lighting using LED bulbs, either in a building and playhouse on rooftops or on open land. V-farm is very high productive farming, with nearly 70-80% more harvest per unit area.

Many startups have also started vertical farming in India. In 7-10 years about 30-40% of vegetables and fruits farming will shift from open farming to vertical farming in India.

At present Singapore is the only country which is practicing vertical farming on a larger scale.

Other countries recently adopted to practice vertical farming on a larger scale. Shift from open farming to vertical farming for fruits and vegetables will take place because vertical farming produces more quantity of fruits and vegetables compared with the same square ft of land used for open farming.

Plus growing population will increase the consumption and will push farmers and start-ups to produce more fruits and vegetables to meet the growing demand so vertical farming is the best option.

Growing urbanization will force to convert the land into buildings so the shortage of land will give a boost to vertical farming in the future.

And vertical farming cannot be done without PVC pipes. So vertical farming will boost the demand for PVC pipes.

Advantages of Vertical farming:

1) Reliable year-round crop production:

The biggest vertical farming benefit is the fact it is not dependent on the weather, meaning we can achieve a consistent year-round crop production without worrying about the impact of adverse weather conditions can have both on quality and profiling of production and yield.

By eliminating the effects of mother nature, there is no such thing as a seasonal crop and growers won’t suffer from losses as they try to push the production windows of seasonal cropping.

We can also successfully reduce harvest times and improve volume without compromising on flavor or quality, which always remains 100% consistent.

Indeed, flavor and shelf life have consistently been able to demonstrate improved attributes when using an indoor vertical growing system.

This allows commercial growers to confidently commit to delivery schedules and offtake agreements demanded by their customers.

2) Unaffected by adverse weather condition:

Growing in a fully enclosed and climate-controlled environment completely eradicates the need to rely on or worry about the weather. Whereas crops in the field can be ruined by excessive rain, wind, and drought. Vertical farming provides 100% harvest certainty.

3) Better use of space:

It goes without saying that traditional farms need fertile arable land. But vertical farms can be designed and built in any climate or location irrespective of weather conditions or temperature extremes.

And because their stacking grows systems allow them to expand upwards, it’s also possible to achieve higher productivity in a small land area.

Depending on which crop is grown, one acre of vertical far could consistently grow the equivalent to between 10 or 20 soil-based acres.

4) Minimize use of water:

One of the main vertical farming benefits is that the growing process only uses about 10% of the amount of water, and as a result, the nutrients and fertilizers, compared to traditional methods.

Because the water is clean after usage, it also allows it to be recycled and reused, reducing costs and minimizing waste.

5) Environmentally friendly:

Vertical farming can be good for the environment because it massively reduces the number of fossil fuels needed for farming equipment which is not required to sow, fertilizers, weed, or harvest crops.

Vertical farming also helps to improve biodiversity because it does not cause a land surface disturbance, which helps the natural animal population which lives in and around farms to thrive.

6) No chemicals or pesticides:

Growing food in a vertical farm, when managed correctly offers the opportunity to completely eliminates the need for pesticides as pests cannot enter the controlled environment to cause drop damage and fungal diseases struggle to gain a foothold as humidity levels are managed.

The end result is the product is better, healthier, safer, and featuring dry leaves that are clean and ready to eat.

7) Reduce transport cost:

When it comes to food production, last-mile delivery is usually the most expensive part of the supply chain.

And it’s not uncommon for crops to be shipped across continents and oceans.

Growing food closer to where the consumer lives is a massive vertical farming benefit as it can massively reduce transport costs, CO2 emissions, and reduce the need for refrigerated storage, making produce fresher and more profitable.

8) Safe for staff:

Traditional farming has gained an unwanted reputation for being a workplace fraught with health and safety risks.

With no heavy machinery or chemicals used for indoor farming, it obviously does not boast the same occupational hazards, significantly reducing the risk of injury.

9) Low labor costs:

Fully automated indoor growing systems do not need huge amounts of manual labor to achieve successful year-round production.

People with low-level skills are still required to sort and pack harvests, but labor overheads will remain low, even if production is scaled upwards.

In vertical farming fruits and vegetables are grown on PVC pipes by cutting PVC pipes into two parts.

So vertical farming cannot be done without PVC pipes. So vertical farming can definitely increase the demand for PVC pipes in the future.

Smart City Mission:

Cities accommodate nearly 31% of the Indian current population and contribute 63% of GDP.

Urban areas are expected to house 40% of India’s population and contributes 75% of India’s GDP by 2030.

This requires the comprehensive development of physical, institutional, social, and economic infrastructure.

All are important in improving the quality of life and attracting people and investments, setting in motion a virtuous cycle of growth and development.

The development of smart cities is a step in that direction. The government is planning to convert 100 small towns into smart cities. The core infrastructure elements for smart cities

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a) Adequate water supply,

b) Assured electricity supply,

c) Sanitation, including solid waste management,

d) Efficient urban mobility and public transport,

e) Affordable housing, especially for the poor,

f) Robust IT connectivity and digitalization,

g) Good governance, especially e-governance and citizen participation.

h) Sustainable environment,

i) Safety and security of citizens,

j) Health and safety.

From the above adequate water supply, sanitation including solid waste management, affordable housing will boost the demand for PVC pipes.

Swacch Bharat Mission:

Swacch Bharat Mission or Clean India mission is a countrywide campaign initiated by the Government of India to eliminate open defecation and improve solid waste management.

Phase one lasted till October 2019. Phase two will be implemented between 2020-2021.

The objectives of the mission are the eradication of manual scavenging, generating awareness, and bringing about a behavior change regarding sanitation and augmentation of capacity at the local level.

Eradication of manual scavenging will help to boost the demand for PVC sewerage pipes.

Jal Jeevan Mission:

The Government of India has decided to set up the implementation of the Jal Jeevan Mission.

The mission targets to supply potable drinking water through piped connections to 15 crore rural households by 2024. The government is expected to spend Rs 3.6 lakh crore, Rs 2.08 lakh crore is the central state to achieve its 2024 target of supplying 55 liters of water per capita per day.

The central government has asked states to use funds from MNREGA to dig trenches for laying pipes and funds from the Jal Jeevan Mission to lay the pipes and carrying out other specialized activities.

The central government has already released the first tranche of the first installment to all states who needed funds. For 2020-2021, a provision of Rs 23,500 crore has been made for the mission.

Nearly 163 million Indians lack access to clean water, the highest number for any country.

In states like Bihar, Odisha, and Jharkhand, fewer than 5% of rural households have piped water.

That compares with 99% of rural households have piped water supply in Sikkim. 

Jal Jeevan Mission will boost the demand for PVC pipes.

Pradhan Mantri Awas Yojana:

Pradhan Mantri Awas Yojana (PMAY) is an initiative by the Government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 31st March 2022.

It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awas Yojana (Gramin) (PMAY-G and PMAY-R) for the rural poor.

The scheme is converged with other schemes to ensure houses have a toilet, gas connection, access to drinking piped water, etc.

A total of 1 Cr homes are approved against the total demand of 1.12 cr as of May 2020.

Since every house under Pradhan Mantri Awas Yojana will be having access to drinking piped water it will boost the demand for PVC pipes.

Pradhan Mantri Krishi Sinchayee Yojana:

The Government of India is committed to accord high priority to water conservation and its management.

To this effect, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated with the version of extending the coverage of irrigation ‘Har Khet Ko Pani’ and improving water use efficiency ‘More Crop Per Drop’ in a focused manner with end to end solution on source creation, distribution, management, field application, and extension activities.

Union Minister for Agriculture and Farmers Welfare has said that the government has set the target of covering 100 lakh hectares of land under micro-irrigation in five years.

Initiatives like Har Khet Ko Pani and covering 100 lakh hectares of land under Micro Irrigation in five years will boost the demand for PVC pipes

All these above growth factors will increase the demand for PVC pipes and will help APL Apollo Pipes to expand and increase its operations.

Financials of Apollo Pipes

Sales Volume (MTPA):

YEAR

Sales Volume

2015-16

26,710

2016-17

28,941

2017-18

33,707

2018-19

39,823

2019-20

44,692

Y-o-Y Growth (%): 12, 5-year CAGR (%): 14

Total Revenue (Rs Crore) of Apollo Pipes:

Year

Revenue

2015-16

209

2016-17

243

2017-18

301

2018-19

374

2019-20

418

Y-o-Y Growth (%): 12, 5-year CAGR (%): 19

EBITDA (Rs crore) of Apollo Pipes:

Year

EBITDA

2015-16

24

2016-17

32

2017-18

41

2018-19

51

2019-20

56

Y-o-Y Growth (%): 10, 5-year CAGR (%): 24

Net Profit (Rs Crore) of Apollo Pipes:

Year

Net Profit

2015-16

10

2016-17

16

2017-18

22

2018-19

24

2019-20

28

Y-o-Y Growth (%): 17, 5 Year CAGR (%): 29

Debt Equity Ratio (Ratio) of Apollo Pipes:

Year

Debt Equity Ratio

2015-16

0.6

2016-17

0.2

2017-18

0.3

2018-19

(0.2)

2019-20

(0.1)

EBITDA Margin of Apollo Pipes (%)

Year

EBITDA Margin

2015-16

12

2016-17

13

2017-18

14

2018-19

14

2019-20

13

ROCE of Apollo Pipes (%):

Year

ROCE

2015-16

24

2016-17

28

2017-18

26

2018-19

24

2019-20

20

5-year Financial Track-record of Apollo Pipes:

Particulars

FY2016

FY2017

FY2018

FY2019

FY2020

Net worth (Rs cr)

55.0

91.4

113.3

229.8

306.5

Capex for the year (Rs cr)

12.2

9.1

17.1

48.2

59.3

Inventory (Rs cr)

13.7

22.7

44.3

52.3

82.4

Inventory Days

24

34

55

53

74

Debtors (Rs. Cr)

29.5

34.2

38.5

35.8

59.4

Debtor days

45

45

42

31

45

Creditor (Rs cr)

8.8

18.9

39.0

36.1

68.0

Creditor Days

15

29

49

36

61

Net Working Capital (Rs cr)

34.4

38.0

43.9

51.9

73.8

Net Working Capital Days

54

50

48

48

58

Dividend Per Share (Rs cr)

1

Dividend Payout ratio

0%

0%

0%

10%

0%

 

As on 31-03-2019

As on 31-03-2020

Change (%)

Reason for Change

Debtors Turnover (Days)

31

45

45.16

Due to the increase in the company’s geographical presence, creating extra new markets

Inventory Turnover (Days)

53

74

39.62

An increase in inventory is due to fittings which made to stocks

Current Ratio

2.88

2.06

-28.19

Temporary impact of revenue collection due to lockdown in year-end

Debt-equity ratio

0.49

0.29

-40.8

Repayment of high-cost debt and increase in shareholders fund.

PBT to Net sales (%)

9.84

9.25

-5.9

Due to an increase in depreciation and some hit due to lockdown.

PBT to net sales

6.61

6.99

5.7

Change in tax from 25% to 22%

The company’s Total Income from operations grew from Rs 7.98 crore in March 2006 to Rs 407.96 crore in March 2020.

Company’s Net Profit grew from Rs 0.09 crore in March 2006 to Rs 28.53 crore in March 2020. Apollo Pipes has Rs 128 crore as Net cash and Rs 50.4 crore as operating cash flow. The company has a debt of Rs 33.17 crore.

Apollo Pipes reported a healthy growth of 12,268 MT in Q2FY21, an increase of 19% as compared to 10,306 MT in Q2FY20. In such bad COVID-19 conditions also company sales increased.

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Pritesh Patel
The founder of Patel Securities, Pritesh loves to talk about Stocks, Businesses, and Sectors.
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