India’s leading APL Apollo Tubes’s sales volume fell by 39pc in the first quarter FY2021 (Q1) to 2,38,311mt compared to prior year quarter. The company’s sales volume declined significantly due to shut down of its operations in April owing to COVID-19 and the subsequently lockdown declared by the government.
Outlook
APL Apollo expects a better performance by the structural steel tubes segment compared to other building materials. Construction activity has picked up from July onwards and better sales volume are visible in the rural market compare to urban areas. The company targets to improve its market share with aggressive sales strategy and reduced delivery time. It plans to reduce costs and focus on the supply chain management in the current fiscal.
On a segment-wise basis, Apollo structural sales volume fell by 49pc to 1,12,000mt, Apollo Z fell by 36pc to 57,000mt, Apollo Galv fell by 52pc to 13,000mt, Apollo standard fell by 56pc to 24,000mt in Q1 2020-21 compare to prior year quarter.
The company’s net profit after tax decreased by 68pc to Rs168mn ($2.24mn) in June quarter in the fiscal year 2021 compared to the prior year.
APL Apollo Tubes operates 10 manufacturing facilities with a total capacity of 2.5mn mt. It has a pan India presence with units strategically located in Sikandarabad, Dujana, Bangalore, Hosur, Raipur, Hyderabad and Murbad. The company has resumed operations at all its manufacturing units.
($1=Rs74.9)