Apollo Pipes Q4 results: For the quarter ending March 31, 2024, the firm recorded operational revenue of ₹255.60 crore, with total income coming in at ₹255.92 crore.
May 20, 2024: Apollo Pipes Ltd., a leading manufacturer of PVC pipes and fittings, announced its financial results for the fourth quarter (Q4) ending March 31, 2024. The company reported a significant decline in net profit, down 56% to ₹6.5 crore compared to the same period last year.
Financial Performance
Apollo Pipes’ net profit for Q4 FY24 stood at ₹6.5 crore. This marks a steep decline from the ₹14.7 crore reported in Q4 FY23. The company attributed this drop to several factors, including increased raw material costs and lower sales volumes.
Revenue from operations for Q4 FY24 was ₹154 crore, down 8% from ₹167.4 crore in the same quarter of the previous year. The decline in revenue is primarily due to reduced demand in key markets and competitive pricing pressures.
Read More: JK Cement Q4 results: Net profit rises 101% to ₹220 crore, declares dividend of ₹20 per share
Cost Pressures and Margins
The company faced significant cost pressures during the quarter. Raw material costs surged, which impacted the overall profitability. The cost of raw materials increased by nearly 15%, driven by higher prices of PVC resin, a key input for manufacturing pipes and fittings.
Apollo Pipes’ EBITDA (earnings before interest, taxes, depreciation, and amortization) for Q4 FY24 was ₹18 crore, a 35% decline from ₹27.6 crore in Q4 FY23. The EBITDA margin also shrank from 16.5% to 11.7%, reflecting the increased costs and reduced revenue.
Dividend Declaration
Despite the challenging quarter, Apollo Pipes declared a final dividend of ₹1.50 per share for the financial year 2023–24. This decision reflects the company’s commitment to returning value to its shareholders. The dividend will be payable on or after June 15, 2024, to shareholders on record as of June 1, 2024.
Management’s Commentary
Mr. Anil Gupta, Managing Director of Apollo Pipes, commented on the Q4 performance. He acknowledged the difficult market conditions and rising raw material costs. “The fourth quarter has been challenging due to multiple headwinds. However, we are focused on improving operational efficiencies and exploring new markets to drive growth,” he said.
Mr. Gupta also highlighted the company’s ongoing efforts to diversify its product portfolio. “We are investing in new product lines and enhancing our distribution network. These initiatives will help us mitigate some of the cost pressures and capture new opportunities in the market,” he added.
Future Outlook
Looking ahead, Apollo Pipes is cautiously optimistic about the upcoming quarters. The company expects some stabilization in raw material prices, which could improve margins. Additionally, Apollo Pipes is planning to expand its production capacity to meet anticipated demand in the coming years.
The company is also focusing on sustainability initiatives. It aims to increase the use of recycled materials in its products and reduce its carbon footprint. These efforts are in line with global trends towards environmentally friendly manufacturing practices.
Read More: Veritaas Advertising IPO to open on May 13; price band set at ₹109-114 apiece.
Stock Market Reaction
Following the announcement, Apollo Pipes’ stock showed mixed reactions. The share price opened lower but recovered slightly as investors digested the results and the dividend declaration. Analysts have a cautious outlook on the stock in the near term, citing cost pressures and competitive market conditions as key concerns.
Conclusion
Apollo Pipes’ Q4 FY24 results reflect the challenging economic environment and the impact of rising costs on its profitability. Despite the decline in net profit and revenue, the company’s management remains committed to its growth strategy and shareholder returns. With planned investments in new products and sustainability initiatives, Apollo Pipes aims to navigate the current headwinds and position itself for long-term success.
