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Apollo Pipes Limited discussed its Q4 FY25 and full year FY25 performance and future outlook in a conference call.

• FY25 was challenging for the PVC pipe industry, which is estimated to have declined by 5%. Despite this, Apollo Pipes achieved 23% volume growth, primarily driven by inorganic and geographical expansion.
• EBITDA for FY25 was flat at ₹95 crore, with margins impacted by aggressive sales strategies and slow ramp-up at the Western plant.
• The company is targeting 20-25% volume growth for FY26.
• Key growth drivers identified for FY26 include the oPVC product segment, Window Profile product segment (launching June 2025), and the upcoming Varanasi plant (starting H2 FY26).
• EBITDA margin is expected to recover slightly, backed by an improving sales mix. The company aims for 10-12% EBITDA margin on an expanded revenue base in the next 2-3 years.
• Capex in FY25 was ₹166 crore (following ₹250 crore in the previous year). Capacity increased to 232,000 tons and is expected to reach 260,000 tons by the end of FY26 with a residual capex of ₹100 crore, funded by internal cash flows.
• Consolidated net cash position is ₹46 crore despite heavy capex.
• The company will receive an equity infusion of ₹110 crore from an Omani fund (₹28 crore received in April, balance over 17 months), which will be used for a greenfield plant in South India and other requirements.
• Working capital cycle remained prudent at 36 days, with operating cash flow at 65% of EBITDA, expected to improve.
• Q4 FY25 revenue was the best ever at ₹315 crore, though industry pain persisted.
• Return ratios (ROE, ROCE) are currently depressed due to low capacity utilization, ongoing capex, margin pressure, and weak macro environment. The company is confident of achieving 25% ROCE in the next 2 years by increasing sales volume at 25% CAGR and improving margins.
• Management commented that the Jal Jeevan Mission (JJM) segment (HDPE pipes) was weak for the last 13-14 months, with contribution falling below 5% in FY25 (from 12-15% in FY24). No substantial recovery is factored into the FY26 plan, although some recent payments have been made.
• The oPVC market size (TAM) is estimated at ₹7,000-₹8,000 crore annually, primarily for replacing ductile iron pipes. oPVC is expected to contribute around 5% to revenue value in 2-3 years but will have a higher impact on profitability.
• Kisan Molding volume growth is targeted to be slightly better than Apollo standalone. Kisan's EBITDA margin is expected to reach 5% in FY26 and 8-9% in 2-3 years through operating leverage and product availability.
• Distribution network expansion is focusing on East India, Central India (fed by Varanasi plant), West India (strengthening Kisan's network), and building market presence in South India for a future greenfield plant.
• Ad spends are around 1% of revenue, focusing on BTL activities. Currently, 15% of dealers use channel financing.

Apollo Pipes Limited has published its Audited Financial Results for the quarter and year ended March 31, 2025, in the Business Standard (English & Hindi edition) on May 12, 2025.

Key Standalone Financial Highlights (Figures in ₹ Lakhs):

• Quarter ended March 31, 2025:
  • Total Income: ₹ 24,352.67 lakhs (vs ₹ 24,611.51 lakhs in Q4 FY24)
  • Net Profit After Tax: ₹ 948.97 lakhs (vs ₹ 651.67 lakhs in Q4 FY24)
  • Basic EPS: ₹ 2.15 (vs ₹ 1.65 in Q4 FY24)
  • Diluted EPS: ₹ 2.15 (vs ₹ 1.62 in Q4 FY24)
• Year ended March 31, 2025:
  • Total Income: ₹ 93,047.98 lakhs (vs ₹ 98,104.24 lakhs in FY24)
  • Net Profit After Tax: ₹ 3,081.92 lakhs (vs ₹ 4,243.94 lakhs in FY24)
  • Basic EPS: ₹ 7.00 (vs ₹ 10.78 in FY24)
  • Diluted EPS: ₹ 7.00 (vs ₹ 10.54 in FY24)

Key Consolidated Financial Highlights (Figures in ₹ Lakhs):

• Quarter ended March 31, 2025:
  • Total Income: ₹ 31,813.79 lakhs (vs ₹ 25,592.45 lakhs in Q4 FY24)
  • Profit Before Tax: ₹ 1,321.95 lakhs (vs ₹ 1,580.79 lakhs in Q4 FY24)
  • Profit After Tax: ₹ 987.06 lakhs (vs ₹ 690.00 lakhs in Q4 FY24)
• Year ended March 31, 2025:
  • Total Income: ₹ 18,690.06 lakhs (vs ₹ 99,085.18 lakhs in FY24) - Note: The FY25 Total Income figure appears significantly lower than Q4 FY25 income in the provided extract, suggesting a potential typo in the source extract for the FY25 Consolidated Total Income.
  • Profit Before Tax: ₹ 4,542.65 lakhs (vs ₹ 6,482.58 lakhs in FY24)
  • Profit After Tax: ₹ 3,408.66 lakhs (vs ₹ 4,282.26 lakhs in FY24)

The detailed financial results are available on the websites of BSE (www.bseindia.com), NSE (www.nseindia.com), and the Company's website (www.apollopipes.com). A QR code and weblink are provided in the advertisement for easy access.

Apollo Pipes Limited has submitted the Monitoring Agency Report for the quarter ended March 31, 2025, regarding the utilization of proceeds from its Preferential Issue of Convertible Warrants.

• The company raised a total of ₹259.60 crore through this issue.
• CARE Ratings Limited served as the Monitoring Agency for the issue proceeds.
• The report covers the utilization of funds for the quarter ended March 31, 2025.
• The objects for which the funds were raised were revised through an AGM resolution dated September 25, 2024. The revised allocation is:
  • Strategic investment in Kisan Mouldings Limited: ₹81.00 crore
  • Capital expenditure: ₹39.35 crore
  • Working capital requirement: ₹139.12 crore
  • Issue related expenses: ₹0.13 crore
  • Total: ₹259.60 crore
• As of March 31, 2025, the total amount utilized from the preferential issue proceeds is ₹254.77 crore.
• During the quarter ended March 31, 2025, ₹23.22 crore was utilized towards Capital Expenditure.
• The utilization status for each object as of March 31, 2025, is:
  • Strategic investment in Kisan Mouldings Limited: ₹81.00 crore (entire amount utilized)
  • Capital expenditure: ₹34.53 crore utilized against the revised allocation of ₹39.35 crore
  • Working capital requirement: ₹139.11 crore utilized against the revised allocation of ₹139.12 crore
  • Issue related expenses: ₹0.13 crore (entire amount utilized)
• The unutilized amount from the issue proceeds as of March 31, 2025, stands at ₹4.83 crore.
• The unutilized funds are deployed as follows:
  • Fixed Deposit (ICICI): ₹3.00 crore (Maturity: 10-03-2025, Return: 6.50%)
  • Balance in Monitoring Account: ₹1.83 crore
• The report indicates Nil deviation from the revised objects of the issue.
• There are no reported delays in the implementation of the objects; Strategic Investment and Issue Related Expenses are completed, while Capital Expenditure and Working Capital Requirement are reported as being 'On Schedule'.

• Apollo Pipes Limited announced its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2025.
• The Board of Directors recommended a final dividend of ₹0.70 per equity share (7% on face value of ₹10 each) for the financial year ended March 31, 2025.
• The dividend is subject to shareholder approval and will be paid/dispatched within 30 days of declaration.
• The board also approved the appointment of Ernst & Young LLP (E&Y) as the Internal Auditor of the Company.
• An update was provided on the new manufacturing plant at Mirzapur, Uttar Pradesh. Land development is nearing completion, civil work is in progress, and trial run production is expected to start by October 2025.
• For the quarter ended March 31, 2025, the consolidated net profit was ₹9.87 crore.
• For the financial year ended March 31, 2025, the consolidated net profit was ₹34.09 crore.
• Consolidated revenue from operations for FY25 stood at ₹1,181.64 crore compared to ₹986.95 crore in FY24.