APL Apollo Tubes Limited CC-Nov25.pdf · 2025-10-29
Thanks a lot sir for this opportunity. J ust wanted to have jus t a bit broader question on understanding on the EBITDA per ton trajectory. If I see the company from last 10 years, 15 years history, till pre -COVID, our margins used to be hover around like INR3,000, INR3,500 range. Post -COVID, I think as the capacity increased and our volumes started to pick up significantly from close to 1.2 million to close to 2 million, our margins improved very sharply, EBITDA per ton. Subsequently, I think while our capacity kept on increasing, I think the utilization level didn't kept pace because the capacity addition was much faster. And that's when the improvement sort of the further improvement couldn't kick in, in terms of operating leverage or gross margin improvement. Also, we got impacted by the macro environment in terms of realization, product mix at some quarters, etcetera. How do you see, sir, things changing there? Because in this quarter, see some -- from the commentary which you have highlighted so far, it appears that you believe that worst in terms of your macro would have been behind, the capacity utilization has reached a decent number and the operating leverage should start kicking in much faster than it would have done in maybe last two years or so. Is this a fair understanding, sir? Would be happy to have your thoughts on that, sir?
Thanks a lot for the details. Just quickly, so last three years, the profit growth, which was slightly below what you would have envisaged and despite sharp -- despite a good revenue growth, do you think -- do you assume -- or do you firmly believe that things would not be the same in the coming next three years, probably it should be much, much higher, right?