APL Apollo Tubes Ltd. expects earnings before interest, depreciation and amortisation to grow better than its volumes, Chief Strategy Officer Anubhav Gupta said.
“Our current endeavour is that Ebitda needs to be superior than volume growth,” Gupta told BloombergQuint in an interview. The company reiterated its guidance of Rs 3,400-3,500 of Ebitda per tonne in financial year 2019-20.
New product launches, robust network and focus on value-added products is what will drive growth for the company, Gupta said, adding that Apollo Structural, Apollo Z and Apollo Tricoat are the three product categories which are expected to bring in higher margins.
The company, over the last three years, has grown better than industry at 20 percent year-on-year, he said. “We want to continue to grow at this rate with the focus being margin expansion and inclusion of more value-added products.”
“If India doubles its steel consumption, and structural tubing as a percentage of market grows to 10 percent from the current levels of 4 percent, we are looking at 4X the market size today,” he said, adding that if this happens, the company would benefit more as it commands a 40 percent market share at present.
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