APL Apollo Tubes reports highest quarterly sales; shares near 52-week peak!

Indian headline indices were skyrocketing higher and frequently setting new records for all-time highs. The BSE Oil & Gas and BSE Energy sectors outperformed all others with gains of more than 2% each, while the auto, healthcare and IT sectors lagged. 

APL Apollo Tubes Ltd drew investors due to its remarkable upswing. On an intraday basis on Monday, shares of APL Apollo Tubes Ltd climbed more than 5% during the earlier trades of the session, reaching near a 52-week high of Rs 1,398.55 per share on the BSE. 

The company’s announcement regarding its sales volume performance for Q1FY24 may have sparked optimism, which in turn led to heavy buying. For Q1FY24, the company reported the highest quarterly sales volume of 6,61,501 tons compared to 4,22,788 tons in Q1FY23 and 6,49,726 tons in Q4FY23. According to the company, the sales volume was boosted by a greater proportion of value-added products. 

Considering the company’s quarterly performance, on a consolidated basis, it reported a modest growth of 5.13% from Rs 4,214.73 crore registered in Q4FY22, recording total revenue of Rs 4,431.09 crore in Q4FY23. It has reported strong operating profit growth of 23%. When compared to the same quarter last year, the net profit for the fourth quarter of FY23 climbed 14.27%, from Rs 176.61 crore to Rs 201.82 crore. 

The company has signed MoUs with its top distributors for the sale of 2.4 million tons of structural steel tubes in FY24. Deepak Goyal, Director (Operations) and Chief Financial Officer of APL Apollo Tubes stated in an interview that the business is on course toward accomplishing significant achievements, including a 100% organic capacity expansion and turning debt-free by the end of FY24. 

With its headquarters in Delhi NCR, APL Apollo Tubes Ltd is the largest producer of structural steel tubes in India. 

Keep a close eye on this stock in the upcoming sessions!