Thought leadership: Q4 results: Here’s what the Managing Director of Apollo Pipes, Sameer Gupta commented on their performance

Apollo Pipes is engaged in the manufacturing and trading of PVC Pipes and Fittings.

Apollo Pipes reported the following numbers for Q4FY22. Sales Volume higher by 26% to 16,409, Revenue higher by 42% to Rs 247.5 crore, EBITDA higher by 5% to Rs 28.4 crore but a decline in Net Profit by 6% to Rs 15.6 crore.

Regarding, their steady growth and future vision, their MD, Sameer Gupta stated the following points in his opening remarks:

Sameer Gupta said that their sales volume growth was mainly driven by a healthy contribution from the cPVC, HDPE pipe, and value-added product segment of fittings. He added that the company did an annual capex of Rs 41 crore towards the improvement of capacities, debottlenecking, and adding balancing equipment majorly into cPVC, HDPE pipes, and fittings.

On the operational front, Gupta said that the management will continue to keep focusing on value-added products on the building products side, which will gain traction. He said that the impact of improved capacity in the earlier quarter has a visible growth in sales of products. He has confidence that all their products will expand their reach and boost sales, going forward. In addition to this, they are aiming toward optimally utilizing their capacities over the next coming years, which will also help them improve sales volumes, going ahead. Moreover, they are also pursuing the various pro-growth measures undertaken by the Government, especially in the rural, infrastructure, and agricultural space that would lead to better demand and consumption of their products in the domestic market over the medium-to-longer term.

Sameer Gupta concluded by stating that they are intensively working in the direction of strengthening their presence across existing and new high-potential geographies. As their operation/capacity utilization of the Raipur plant improves, he is confident they will open up the untapped and high potential markets of Central and Eastern India supported by the expected positive trend in industrial growth not only for 2022-23 but also for years ahead. Overall, the management is targeting a better outreach for their existing products along with constant development.