The company registered sales volume of growth of 0.43% to 16,40,353 ton in FY21 from 16,33,310 ton recorded in FY20, despite Covid-19 disruptions. “This highlights APL Apollo's strength in maintaining its dominant leadership in structural steel tubes market and increasing its market share to 50% from 40% since March 2020,” the company said in a press release.
On a sequential basis, total sales declined 10.34% from 485,579 ton posted in Q3 FY21. Shares of APL Apollo Tubes were trading 5.33% lower at Rs 1325.90 on BSE.
Earlier in March 2021, the company announced the amalgamation of the Apollo Tricoat and Shri Lakshmi Metal Udyog with itself. APL Apollo and Apollo Tricoat are engaged in the business of production of ERW steel tubes. Shri Lakshmi is engaged in the business of production of ERW steel tubes and GP Coils. The amalgamation would combine the businesses under "APL Apollo" brand with wide product offerings and geographical footprint leading to a stronger market presence. Shri Lakshmi and Apollo Tricoat operate businesses that complement each other and the combination would result in stronger consolidated revenue and profitability, with diversification in product portfolio.
APL Apollo Tubes is one of the largest producer of structural steel tubes in India. It has a distribution network of warehouses and branch offices in 29 cities across the country catering to domestic as well as 20 countries worldwide. On a consolidated basis, the company's net profit jumped 77.8% to Rs 132 crore on a 22.5% rise in net sales to Rs 2500 crore in Q3 FY21 over Q3 FY20.