Any current/future new fundraising through debt or equity?

No new debt fundraising is planned; the company remains debt-free despite ongoing capex commitments. Future capex (INR100-150 crores annually for next 2-3 years) will be mainly funded through internal cash flows and balance equity infusion. Balance equity infusion is expected from promoters and employees via preferential allotment. Capex includes projects like Varanasi plant expansion, O-PVC lines, window profiles, and potential South India capacity expansion. No mention of fresh debt; focus is on funding growth via equity and internal accruals.

Any current/future capex/capital investment/strategic investment?

Current capex includes INR250 crores total: INR150 crores for Varanasi plant expansion, INR50 crores for O-PVC lines, and INR50 crores for window profiling. Varanasi plant expansion adds 40,000 tons capacity, expected operational in Q4 FY '25 with ~70-80% utilization in Q4. O-PVC lines: 1 line operational in Q1 FY25, 2 more to be operational by end of FY25; majority capex mostly done, balance paid as machines arrive. Window profiling project underway; ~90% capex yet to be spent, expected ready by end FY '25. Future capex: INR150 crores projected for FY '26 (residual Varanasi capex, O-P

Future growth expectations in sales/revenue/volumes?

Apollo Pipes targets a consolidated revenue of INR1,650-1,750 crores for FY25, including Kisan and new products. Standalone Apollo Pipes aims for INR1,250 crores revenue in FY25 with 25% volume growth; Kisan targets INR450-500 crores. By FY27, consolidated revenue is targeted at around INR2,600 crores, implying a CAGR of approximately 25-27% over 3 years. Channel inventory is at minimal levels currently; volume growth of over 30% is expected in the coming quarters once prices stabilize. Varanasi plant expansion will add 40,000 tons capacity, partially operational by Q4 FY25, aiding gro

Future growth expectations in earnings/operating earnings/profits/EPS?

Apollo Pipes targets a consolidated revenue growth CAGR of 25%-30% over the next 3-4 years, aiming to reach INR 2,600+ crores by FY '27 from around INR 1,000 crores in FY '24. Standalone revenue expected at INR 1,250 crores in FY '25 and INR 1,600 crores by FY '27, implying ~27% growth year-on-year post FY '25. EBITDA margins for Apollo Pipes expected to move towards 12%-13%, currently around 10%, affected initially by capex and operating leverage. Kisan Mouldings, now profitable, targets growing revenues from INR 65 crores in Q1 to INR 450-500 crores in FY '25 and about INR 750-800 cror

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly disclose the current or expected order book or pending orders in specific numerical terms. Karan Bhatelia’s question on channel inventory suggests minimal current inventory due to price disturbances, indicating potential for order replenishment as prices rise. Management highlighted a recovery in sales and strong volume growth expected ahead, with Airbus targeting 25%-30% CAGR over the next 4 years. Apollo Pipes is focusing on quality sales rather than padding order books artificially, as inferred from their cautious stance on HDPE orders and cautious revenue

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Apollo Pipes LtdQ2 FY24Industrial Products

Apollo Pipes Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹482P/E: 307.4Market Cap: ₹2.3K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Apollo Pipes targets a consolidated revenue of INR1,650-1,750 crores for FY25, including Kisan and new products.
→Standalone Apollo Pipes aims for INR1,250 crores revenue in FY25 with 25% volume growth; Kisan targets INR450-500 crores.
→By FY27, consolidated revenue is targeted at around INR2,600 crores, implying a CAGR of approximately 25-27% over 3 years.
→Channel inventory is at minimal levels currently; volume growth of over 30% is expected in the coming quarters once prices stabilize.
→Varanasi plant expansion will add 40,000 tons capacity, partially operational by Q4 FY25, aiding growth.
→O-PVC pipe lines are ramping up, contributing ~5% revenue in FY25 and expected 8-10% by FY26.
→Kisan sales expected to grow from INR65 crores in Q1 FY25 to INR450-500 crores in FY25, reaching INR750-800 crores by FY27 with 10% EBITDA margin.
→Company confident of achieving 25-30% CAGR in revenues and volumes over next 3-4 years.

Margin guidance

Category 2

→Apollo Pipes targets a consolidated revenue growth CAGR of 25%-30% over the next 3-4 years, aiming to reach INR 2,600+ crores by FY '27 from around INR 1,000 crores in FY '24.
→Standalone revenue expected at INR 1,250 crores in FY '25 and INR 1,600 crores by FY '27, implying ~27% growth year-on-year post FY '25.
→EBITDA margins for Apollo Pipes expected to move towards 12%-13%, currently around 10%, affected initially by capex and operating leverage.
→Kisan Mouldings, now profitable, targets growing revenues from INR 65 crores in Q1 to INR 450-500 crores in FY '25 and about INR 750-800 crores by FY '27, with EBITDA margins improving to 10%-12%.
→O-PVC pipes expected to contribute 5% of revenue in FY '25 and 8%-10% by FY '26, with higher EBITDA margins than blended company margins.
→Profitability improvements are expected through value-added products, capacity expansions (Varanasi plant, O-PVC lines), and increased operational efficiencies.

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Fundraise plans

Yes

→No new debt fundraising is planned; the company remains debt-free despite ongoing capex commitments.
→Future capex (INR100-150 crores annually for next 2-3 years) will be mainly funded through internal cash flows and balance equity infusion.
→Balance equity infusion is expected from promoters and employees via preferential allotment.
→Capex includes projects like Varanasi plant expansion, O-PVC lines, window profiles, and potential South India capacity expansion.
→No mention of fresh debt; focus is on funding growth via equity and internal accruals.

Order book

→The transcript does not explicitly disclose the current or expected order book or pending orders in specific numerical terms.
→Karan Bhatelia’s question on channel inventory suggests minimal current inventory due to price disturbances, indicating potential for order replenishment as prices rise.
→Management highlighted a recovery in sales and strong volume growth expected ahead, with Airbus targeting 25%-30% CAGR over the next 4 years.
→Apollo Pipes is focusing on quality sales rather than padding order books artificially, as inferred from their cautious stance on HDPE orders and cautious revenue growth targets.
→Kisan business is being integrated and ramped up with a focus on high-quality sales.
→Varanasi plant expansion and new product lines (O-PVC, window profiles) are expected to contribute significant new business from FY '25 onwards.
→Management expects solid recovery in North and South markets backed by brownfield capacity additions, implying improving order inflows.

Capex plans

Yes

→Current capex includes INR250 crores total: INR150 crores for Varanasi plant expansion, INR50 crores for O-PVC lines, and INR50 crores for window profiling.
→Varanasi plant expansion adds 40,000 tons capacity, expected operational in Q4 FY '25 with ~70-80% utilization in Q4.
→O-PVC lines: 1 line operational in Q1 FY25, 2 more to be operational by end of FY25; majority capex mostly done, balance paid as machines arrive.
→Window profiling project underway; ~90% capex yet to be spent, expected ready by end FY '25.
→Future capex: INR150 crores projected for FY '26 (residual Varanasi capex, O-PVC, window profiling, and new Southern India expansion).
→Southern India plant expected investment around INR200 crores; not part of INR2,600 crore FY '27 revenue target — will be additional.
→Annual capex guidance post current projects around INR100-150 crores funded through internal accruals and preferential allotment equity.

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