APL Apollo Tubes Limited, the world's largest branded structural steel tube company, reported a modest increase in its fourth quarter sales volume setting a new record for quarterly sales. The number was also up 12% on a sequential basis.
The company achieved its highest-ever quarterly sales volume of 678,556 tons in Q4FY24, representing a 4% year-on-year (YoY) growth and a 12% quarter-on-quarter (QoQ) increase.
For the full year FY24, APL Apollo reported a sales volume of 2,618,477 tons, marking a significant 15% YoY growth. This growth was largely attributed to the newly commissioned plants in New Raipur and Dubai.
The New Raipur plant operated at nearly 50% capacity utilization in Q4FY24, as some production lines had just been commissioned. The Dubai plant also showed promising initial results, with strong demand from global steel tube distributors for APL Apollo's products.
The company's focus on value-added products continued to yield positive results, with the contribution from this segment increasing to 58% in FY24, up from 56% in the previous year. APL Apollo has been trying to reduce its reliance on commoditized segments.
In the Apollo Structural Heavy segment, Q4FY24 sales volume stood at 64,069 tons, up 63% YoY and 3% QoQ. FY24 sales volume was 222,622 tons, up 39% YoY. The Apollo Structural Super Heavy segment saw Q4FY24 sales volume at 7,539 tons, up 234% YoY and 3% QoQ. FY24 sales volume was 24,049 tons, a significant increase from 2,254 tons in FY23.
The Apollo Structural Light segment's Q4FY24 sales volume was 102,411 tons, down 6% YoY but up 7% QoQ. FY24 sales volume was 421,335 tons, up 3% YoY. In the Apollo Structural General segment, Q4FY24 sales volume was 271,677 tons, down 9% YoY but up 9% QoQ. FY24 sales volume was 1,103,364 tons, up 10% YoY.
Apollo Z Rust-proof segment's Q4FY24 sales volume was 156,119 tons, down 4% YoY but up 26% QoQ. FY24 sales volume was 593,192 tons, up 5% YoY. The Apollo Z Coated segment saw Q4FY24 sales volume at 40,091 tons, up 315% YoY and 11% QoQ. FY24 sales volume was 124,571 tons, up 217% YoY.
Lastly, the Apollo Galv Agri/Industrial segment's Q4FY24 sales volume was 36,650 tons, up 34% YoY and 23% QoQ. FY24 sales volume was 129,345 tons, up 30% YoY.
Sales at APL Apollo -- India's largest metal construction pipes and tubes maker -- sales volume has grown at a CAGR of 22% over the last two years (FY22-24). The company expects the expansion of construction-led demand in India post the general elections to further boost its sales volume in the coming quarters.