APL Apollo Tubes sees 10-15% volume growth in FY22

Steel Insights Bureau

APL Apollo Tubes Ltd, leading branded structural steel tubes manufacturer, has guided to record 10-15 percent year-on-year volume growth in FY22E, barring third wave impact.

The company, which now controls almost half of the structural pipe market in the country, recorded 10 percent quarteron-quarter decline in volume in the fourth quarter of FY21 at 435 kilo tons as demand took a breather due to continuous rise in prices on account of spike in raw material costs.

Due to second Covid wave led regional lockdowns in India, it further dampens demand in the first quarter of FY22, but the company management told analysts that it is confident if restrictions are gradually relaxed could sustain Q4FY21 run-rate. In normal case, APL can achieve 500 kt quarterly run rate.

“Fiscal FY22 started on a strong note but was immediately hit by pandemic once again and brought our country to halt by mid-April. However, the situation has started to improve slowly which gives good visibility for the rest of FY22.” Sanjay Gupta, Chairman, APL Apollo

“The smaller producers were hit hard in some of the product categories like GP pipes where they were unable to secure ram material. APL has an upper hand in those categories as it has a long term volume agreement with major steel producers like JSW Steel, Tata Steel,” Centrum Research