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Apollo Pipes soars 29% in one week on hopes of better demand

In Q2FY21, the company's net profit after tax grew 64 per cent YoY at Rs 9.5 crore, on the back of 28 per cent growth in operational revenues at Rs 123.3 crore over the previous year quarter.

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Buzzing stocks | Markets | Q2 results

SI Reporter  |  Mumbai 

stocks, BSE Bankex
The company said the volumes were driven by a healthy contribution from the cPVC, HDPE pipe, and value-added product segment of fittings.

Shares of Apollo Pipes were trading higher for the fifth straight day, up 14 per cent to Rs 593.70 on the BSE in intra-day trade on Friday on expectation of better demand outlook. The stock of the plastic products firm hit a 52-week high today, thus surging 29 per cent in the past week post-September quarter (Q2FY21) results. In comparison, the S&P BSE Sensex was up 5 per cent during the week.

Looking ahead, the management believes the upcoming festivities and various pro-growth measures undertaken by the Government, especially in the rural, infrastructure, and agricultural space should lead to better demand and consumption of the company’s products in the domestic market over the medium-to-longer term. They are confident that once the macro-situation normalises, the company should be able to deliver strong and sustainable growth, going forward.

Meanwhile, Apollo Pipes' sales volumes in Q2FY21 were higher by 19 per cent to 12, 268 tons from 10,306 tons in the previous year quarter. The company’s net profit after tax grew 64 per cent year-on-year (YoY) at Rs 9.5 crore in Q2FY21, on the back of 28 per cent growth in operational revenues at Rs 123.3 crore over the previous year quarter. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins improved 155 basis points to 14.19 per cent.

The company said the volumes were driven by a healthy contribution from the cPVC, HDPE pipe, and value-added product segment of fittings. Cost-optimisation measures and improved contribution from the high-margin fittings segment further resulted in a better gross margin performance during the quarter, it said.

At 10:38 am, the stock of Apollo Pipes was up 10 per cent at Rs 571 on the BSE, against a 0.63 per cent rise in the S&P BSE Sensex. A combined around 200,000 equity shares changed hands on the counter on the NSE and BSE so far.

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First Published: Fri, November 06 2020. 10:40 IST
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