APL Apollo tubes Q2FY22 sales volume data rallies the share price by 3.2 per cent in one day

The 5-day down streak has come to an end with a green candle today for APL Apollo tubes, meeting the expected quarterly sales volume

APL Apollo Tubes, India’s leading branded structural steel tube company, announced its sales volume performance for the quarter ending September 30, 2021. The Company registered a sales volume of 427,387 Ton in Q2FY22 (+15 per cent QoQ/-11 per cent YoY), recovered sequentially as the construction activity started to pick up after the Covid second wave which had hit the country in Q1.

However, the extended monsoon in Q2 impacted the construction activity to some extent. The company focused on maintaining its dominant leadership and increasing the sale of its value-added products in a challenging environment. The value-added product portfolio contributed 62 per cent in Q2FY22 as compared to 57 per cent in FY21.

APL’s market share has grown exponentially from 27 per cent to 50 per cent in the last five years from FY16 to FY21 making them dominate the structural steel tube industry. Their profitable organic growth leads them to achieve a consistent average 5-Yr ROCE of 22.5 per cent, which is the highest among their peers.

Higher expenditure on infrastructure – highways, bridges, flyovers, public utilities, warehouse and residential construction demand are the primary growth drivers for this company.

APL Apollo’s multi-product offerings include over 1,500 varieties for multiple building material structural steel applications. They serve as a ‘one-stop shop’ for a wide spectrum of products, catering to an array of industrial applications such as urban infrastructure and real estate, rural housing, commercial construction, greenhouse structures and engineering applications. The company’s vast 3-tier distribution network of over 800 Distributors is spread across India, with a presence in over 300 towns and cities.

At the closing bell on Friday, the share price was trading 3.51 per cent up at Rs 851.15 on the BSE exchange.