Settlement as on 1st jan,2018 , hence will be reflected in March '18 shp.
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Supreme ind has taken price hikes for Pipes and fittings since Dec’17 due to rise in input cost. This would lead to some inventory gains for all the players too in the coming qtr. Also in the clustered market where the pricing is decided by biggies will lead to benefit to other small players like Apollo Pipes.
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Hi Parth,
Apparently the forum doesn’t allow me to PM you. Any other alternative to provide the email id for the report.
Thanks
Rakesh
UPDATE : Company has commenced the commercial production at its new unit located at
Ahmedabad,Gujarat. DTD 04.04.18
HOBER MALLOW TRUST brought 59307 shares at rs 580/- through bulk deal.
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Any negative news on PVC industry as such ? I read some tweets but dint get the full info or update what is it. Appreciate any inputs. Thank you in advance.
There is a lobby trying to ban lead based stabilizer used in PVC . Ministry is planning to phase out use of lead based stabilizers and wants warning printed on pipes that it contains lead (poisonous substances) This info could be accessed from data base on parliamentary questions, Feb 2018.
This throws 2 possibilities:
- Shift to non-Lead based stabilizers - Advantage Vikas Ecotech
- Shift to use of DI pipes. Disadvantage PVC. However, this is not an easy fix. Just a near term tailwind.
More study needed to understand full impact. Too early to get an idea of the impact.
Am attaching a document for more info: - A white paper on Lead - Poisoning India’s
food & water supply chain
http://vikasecotech.com/whitepapers/Vikas_Ecotech_whitepaper_01.pdf
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Thank you much for your swift response. Glancing over the white paper and also some articles on Internet, it appears to be an issue only with the use of stabalizers and not the PVC/CPVC products as such. It also talks about need for replacing LBS ( lead ) with that if Vinyl. If anything, I found this positive for organized players and more of a concern with cheap quality unorganized PVC pipes. Is that a fair assessment ?
On a side note, I am getting my new construction house being made here in the U.S and I see CPVC Pipes are being used for plumbing by the builder.
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Apollo Pipes "Only addresses PVC solutions, not metal products. Does not have CPVC, which is
regulated for health safety reasons in these two verticals (higher lead content)."
Excerpt from Phillip Capital report on Apollo Pipes.
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PVC pipes are mostly used for irrigation & drainage purpose .for plumbing in house cpvc pipes are used in India Apollo Pipes manufacturers both UPVC & CPVC pipes.
Apollo Pipes Ltd Q4 net profit jumps to Rs. 12 crores
Apollo Pipes Ltd. has reported financial results for the period ended March 31, 2018.
The company has reported net sales of Rs.80.57 crores during the period ended March 31, 2018 as compared to Rs.71.58 crores during the period ended March 31, 2017.
The company has posted net profit of Rs.12 crores for the period ended March 31, 2018 as against Rs.5.43 crores for the period ended March 31, 2017.
The company has reported EPS of Rs.10.88 for the period ended March 31, 2018 as compared to Rs.4.92 for the period ended March 31, 2017.
The company has reported net sales of Rs.301.28 crores during the 12 months period ended March 31, 2018 as compared to Rs.270.84 crores during the 12 months period ended March 31, 2017.
The company has posted net profit of Rs.22.05 crores for the 12 months period ended March 31, 2018 as against Rs.15.68 crores for the 12 months period ended March 31, 2017.
The company has reported EPS of Rs.19.99 for the 12 months period ended March 31, 2018 as compared to Rs.14.22 for the 12 months period ended March 31, 2017.
Source Equity bulls website
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Investor presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/fe8a0615-8c25-454e-839b-15b9f8222dbd.pdf
While the profit growth as good, Sales and revenue growth of low double digit is concerning. Any particular reason provided for such subdued growth ? I am not sure how competition and other industry players fared , but with such low base from Apollo, they sure should grow at 20+% revenue growth .
The new capacity in Gujarat for western part of the Indian market has started production a couple month back. sales growth, I believe should be around 25% from next quarter onwards. Next year co. is planning to start production in southern part of the country also.
If their capacity utilization is very low then why there is need of capacity expansion. From where they will get sales for their product still growing only with 15%.
How come Bank balance hv increased from Rs.1.22cr to Rs.204 cr??
Moreover borrowings have significantly increased from Rs 11.54cr to Rs.151cr , but finance cost is still the same.
what might be the possible reason behind this,know that the company is expanding its facilities but the capex required is around 75cr upto FY2020.
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If the borrowing has increased, ideally the bank balance should go up… Right? Probably they have taken loan recently which has not been deployed yet and also haven’t paid interest
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Thanks for clarification.
So, going forward will they be paying interest for whole 151cr or only the part which they will be utilising?
Seems like cash credit.
Current plant is in UP…and new plant is in Gujarat to cater to Western market…probably the logistics cost makes their products noncompetitive in West India. Similarly the new plant is planned for South India (Bangalore)