APL Apollo Tubes Ltd

- APL Apollo Tubes is planning a capex of INR 500-600 crores for three new plants as part of its expansion to 5 million ton capacity by FY '27. - New plants include Siliguri (to cater to East market), Gorakhpur (for Eastern UP, Bihar, Odisha), and Ahmedabad (to serve Gujarat). - These plants will mainly involve shifting existing mills rather than adding new mills. - The company has already incurred INR 200-250 crores related to land purchase and initial work for Siliguri and Gorakhpur. - Capex for plant and building will proceed once land possession is complete. - Focus on regional penetration strategy with these smaller plants rather than large new mills. - Renewable power initiatives are underway for the Raipur plant, expected to reduce power costs starting FY '26. - Further capacity additions and high-value product mills (e.g., 500x500 mm) may be installed depending on ramp-up success.

- Targeting sales volume of 3.2 million tons for FY '25 with 20-25% growth next year. - Plan to reach 5 million tons sellable capacity by FY '27 through new plants in Siliguri, Gorakhpur, Ahmedabad, and ramping up existing plants. - Dubai plant capacity of 300,000 tons expected to be fully utilized by FY '27. - Exports currently at ~100,000 tons, with combined India and Dubai volumes expected to grow. - EBITDA per ton target near INR 5,000 by FY '26, supported by higher utilization and value-added products. - Expansion into high-diameter tube export markets using Dubai and India plants. - Continued focus on regional penetration with smaller plants to reduce freight costs and better serve local markets. - Long-term strategy emphasizes market share gain from scrap steel segment and leveraging lower raw material costs.

- EBITDA per ton expected to reach near INR 5,000 by FY '26, driven by better utilization and operating leverage benefits. - Ramp-up of new plants (Raipur and Dubai) and increased share of value-added products (VAP) are key growth drivers enhancing margins. - Sales volume target set at 3.2 million tons for FY '25, with a planned 20-25% growth next year and 5 million tons capacity target by FY '27. - Improved product mix and increased gross margin spreads quarter-on-quarter support margin expansion. - Cost rationalization efforts in power, steel wastage, and consumables continuing to strengthen profitability. - Working capital levels expected to remain low, aiding net debt near zero and improving cash flow from FY '26 onwards. - Market share gains anticipated as pricing gap with scrap steel products narrows, boosting volume growth and profitability.

- On Slide 45 (referenced on Page 14), there is mention of ongoing inquiries requiring 220,000 tons of heavy structural steel tubes for about 42 million square feet of visibility. - The company highlighted strong order inflow for the newly commissioned 300 x 300 mm mill at Dubai, indicating good current demand. - Exports and orders are ramping up from the Dubai plant; full utilization of 300,000-ton capacity expected by FY '27. - Promoting a broad product range (300x300 to 1,000x1,000 mm) internationally, with active booking of orders. - Domestic export tonnage currently around 100,000 tons, with plans to ramp up combined exports from India and Dubai. - Emphasis on market creation and promotional efforts underway to boost orderbooks for high-diameter tubes.

- No explicit mention of any current or planned fundraising through debt or equity in the provided transcript. - Management indicated maintaining a near net-zero debt balance sheet for FY '25. - They expect surplus cash visible on the balance sheet from FY '26 onwards. - Capex of INR 500-600 crores for new plants (Siliguri, Gorakhpur, Ahmedabad) is partly underway, with INR 200-250 crores already spent mainly on land acquisition. - No mention of raising funds through equity or debt to finance this expansion; payments are in progress for land and future capex will follow. - The company aims to keep a conservative and healthy balance sheet without additional net debt.