Apl Apollo Tubes demonstrates profitable growth
16-05-2015 • About Apl Apollo Tubes (
$APLAPOLLO) • By InTwits
Apl Apollo Tubes is an attractive growth stock in Iron & Steel Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Apl Apollo Tubes showed fast growth in the last financial year. Apl Apollo Tubes's revenue surged on 25.7% in FY2015. The growth also happened in EBITDA of 12.2% for the same period.
If we look for the longer period Apl Apollo Tubes showed fast revenue growth of 31.1% from FY2012 to FY2015 annually. EBITDA surged on 17.1% from FY2012 to FY2015 annually.
Apl Apollo Tubes ($APLAPOLLO) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 9,010 | 13,923 | 20,083 | 24,970 | 31,383 |
|---|
| Revenue growth, % | | 54.5% | 44.2% | 24.3% | 25.7% |
|---|
| SG&A, % | | 6.72% | 6.58% | | |
|---|
| EBITDA | 957 | 1,151 | 1,595 | 1,646 | 1,847 |
|---|
| EBITDA growth, % | | 20.3% | 38.6% | 3.1% | 12.2% |
|---|
| EBITDA margin, % | 10.6% | 8.27% | 7.94% | 6.59% | 5.88% |
|---|
| Net Income | 431 | 491 | 686 | 590 | 638 |
|---|
| Net Income margin, % | 4.78% | 3.52% | 3.42% | 2.36% | 2.03% |
|---|
| |
| CAPEX | 791 | 779 | 849 | 1,278 | 1,839 |
|---|
| CAPEX/Revenue, % | 8.77% | 5.60% | 4.23% | 5.12% | 5.86% |
|---|
| Debt | 2,473 | 3,106 | 4,449 | 5,048 | 4,342 |
|---|
| Cash | 43 | 20 | 23 | 19 | 18 |
|---|
| Net Debt/EBITDA | 2.5x | 2.7x | 2.8x | 3.1x | 2.3x |
|---|
| |
| ROIC, % | 20.5% | 18.2% | 19.5% | 16.0% | 16.6% |
|---|
| ROE, % | 20.2% | 18.3% | 20.6% | 14.9% | 14.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period the company showed big decline in EBITDA margin of 2.40 pp from 8.30% in FY2012 to 5.90% in FY2015.
Apl Apollo Tubes shows attractive ROIC at 16.6% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 18.2%. It's average ROIC for the last three years was 17.4%.
Net Income margin dropped on 0.400 pp from 2.40% to 2% in FY2015. In the last 3 years Net Income margin dropped on 1.50 pp from 3.50% in FY2012 to 2% in FY2015.
Apl Apollo Tubes operates at ROE of 14.2%. It's average ROE for the last three years was 16.6%.
Capital expenditures (CAPEX)
To this fast growth Apl Apollo Tubes had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 5.86%. CAPEX/Revenue increased slightly on 0.265 pp from 5.60% in FY2012 to 5.86% in FY2015. It's average CAPEX/Revenue for the last three years was 5.07%.
Leverage (Debt)
The company has medium debt level at 2.3x Net Debt/EBITDA to maintain high growth. If we look for the longer period Apl Apollo Tubes's leverage dropped on 0.34x from 2.68x in FY2012 to 2.34x in FY2015.
Management team
Apl Apollo Tubes is run by Romi Sehgal as a CEO and by Deepak Goyal as a CFO.
Peers in Iron & Steel Products
Below you can find Apl Apollo Tubes benchmarking vs. other companies in Iron & Steel Products industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Msp Steel & Power ($MSPL) | -61.2% | 19.7% | 60.6% | 29.4% | |
| Metal Coatings (India) ($METALCO) | -21.7% | 20.4% | -15.8% | 13.0% | |
| Usha Martin ($USHAMART) | -47.1% | 10.4% | 7.8% | 12.5% | |
| Lakshmi Precision Screws ($LAKPRE) | -29.7% | 9.9% | -6.2% | 7.5% | |
| Nile ($NILE) | -33.5% | 7.5% | -19.1% | 6.9% | |
| |
|---|
| Median (10 companies) | -31.6% | 15.2% | -8.6% | 4.8% | |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | | 54.5% | 44.2% | 24.3% | 25.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Usha Martin ($USHAMART) | 18.7% | 13.2% | 18.1% | 18.7% | |
| Msp Steel & Power ($MSPL) | 15.8% | -1.1% | 17.7% | 13.8% | |
| Lakshmi Precision Screws ($LAKPRE) | 14.5% | 15.9% | 16.2% | 7.0% | |
| Nile ($NILE) | 6.4% | 5.5% | 5.6% | 6.0% | |
| Metal Coatings (India) ($METALCO) | 4.2% | 4.7% | 4.5% | 4.1% | |
| |
|---|
| Median (6 companies) | 6.7% | 5.2% | 5.6% | 6.5% | |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 10.6% | 8.3% | 7.9% | 6.6% | 5.9% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Usha Martin ($USHAMART) | 26.0% | 21.6% | 23.5% | 29.0% | |
| Msp Steel & Power ($MSPL) | 71.2% | 38.3% | 14.8% | 15.4% | |
| |
|---|
| Median (2 companies) | 9.3% | 6.0% | 1.6% | 22.2% | |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 8.8% | 5.6% | 4.2% | 5.1% | 5.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Gandhi Special Tubes ($GANDHITUBE) | 31.2% | 28.3% | 18.9% | 13.2% | |
| Usha Martin ($USHAMART) | 9.5% | 4.3% | 6.5% | 7.6% | |
| Msp Steel & Power ($MSPL) | 6.4% | -2.8% | 7.2% | 5.9% | |
| Lakshmi Precision Screws ($LAKPRE) | 13.7% | 14.4% | 11.9% | 3.1% | |
| Electrotherm (India) ($ELECTHERM) | 7.1% | 0.0% | -5.3% | 0.0% | |
| |
|---|
| Median (23 companies) | 9.4% | 8.5% | 7.2% | 5.9% | |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 20.5% | 18.2% | 19.5% | 16.0% | 16.6% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lakshmi Precision Screws ($LAKPRE) | 2.4x | 2.7x | 3.4x | 8.1x | |
| Msp Steel & Power ($MSPL) | 9.2x | | 6.4x | 6.6x | |
| Usha Martin ($USHAMART) | 2.6x | 10.0x | 4.8x | 4.8x | |
| National Fittings ($NATFIT) | 0.6x | 0.8x | 0.1x | 0.0x | |
| Gujarat Containers ($GUJCONT) | 0.0x | 2.6x | 2.6x | 0.0x | |
| |
|---|
| Median (13 companies) | 2.6x | 2.6x | 3.9x | 0.0x | |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 2.5x | 2.7x | 2.8x | 3.1x | 2.3x |
