APL Apollo Tubes Limited — Earnings Release 2019

May 18, 2019

APL/SECT/DLH/SE: 2019—20 18'" May 2019

Electronic Filing

NationalStockofLimitedIndiaExchange	ofDepartmentCorporateServices/Listing
Plaza"Bandra-Kurla"ExchangeComplex,	BSELimited
Bandra(E),	PhirozeTower,Jeejeebhoy
Mumbai-400051	DalalStreet,Fort,

Mumbai-4000O1

NSE Symbol : APLAPOLLO Scrip Code : 533758

Dear Sir/Madam,

Re: Press Release

Enclosed herewith please find copy of Press Release being made by the Company today titled "FY 2019".

We request you to kindly take the above information on your record.

Thanking you

Yours faithfully For APL Apollo Tubes Limited

Adhish Swaroop I Company Secretary

Encl: a/a

APL Apollo Tubes Limited (ClN-L74B99 DL 1986PLC023443)

Corp. Office : 36, Kaushambi, Near Anand Vlhar Terminal, Delhi-NCR—QOIOIO, India Tel : +9I-l 20-4041400 Fax : +9l-120-404l444 Corp. Office : Tapasya Corp. Heighls 4th Floor, Seder-126, Noida, Ullar Pradesh-20l303 India Regd. Office : 37, Hargovind Enclave, Vikas Marg, Delhi-110092, India Tel : +9I-ll-22373437 Fax: +9I-l 1-22373537 Unil-l :A-l9, Industrial Area, Sikandrabad, Disfl. Bulandshahar, U.R-203205, India Unil - II : 332-338, Alur Village, Perandapolli, Hosur, Tamilnadu-635109, India Unil-III : PIoI No. M-I, Addilianal M.I.D.C. Area, Kudavali, Murbad, Maharashlra, Thane-421401, India Unil-IV : Village Bendri, Near UrIa IndI. Area Raipur, Chhallisgarh-493661, India E-mail : inlo@ap|apollo.com Website : www.cplapoIIo.com

APL Apollo Tubes Limited

37, Hargobind Enclave, Vikas Marg, New Delhi — 110 092

FY2019

Highest ever sales volume at 13.4 lakh ton, higher by 19% Net Revenues increases by 34% to Rs. 7,152 crore EBITDA at Rs. 405 crore, higher by 7%

New Delhi, May 18, 2019: APL Apollo Tubes Limited (APL Apollo), India's leading branded steel tubes manufacturer, announced its financial results for the quarter and Fiscal Year ended March 31, 2019.

Financial Performance Highlights

Performance Review for Q4 FY19 vs. Q4 FY18

• Sales Volume* improves by 39% to 4.18 lakh tons from 3.00 lakh tons
• Net Revenues increases by 38% to Rs. 2,094 crore compared to Rs. 1,519 crore
• EBITDA at Rs. 141.6 crore compared to Rs. 104.5 crore, higher by 35%
  • o EBITDA per ton stood at Rs. 3,384/ ton
• PBT at Rs. 95.4 crore as compared to Rs. 67.0 crore, higher by 42%
• Net Profit after Tax at Rs. 61.7 crore compared to Rs. 42.7 crore, higher by 45%

Performance Review for FY19 vs. FY18

• Sales Volume* improves by 19% to 13.4 lakh tons from 11.3 lakh tons
• Net Revenues increases by 34% to Rs. 7,152.3 crore compared to Rs. 5,334.8 crore
• EBITDA at Rs. 404.6 crore compared to Rs. 379.1 crore

Note:

Net Revenues includes other operating income, which is a part of regular business income *Excluding Trading & Scrap *EBITDA with other income

• o The profitability during the year was mainly impacted due to an inventory loss of Rs. 41.7 crore in Q3 FY19, caused by a steep fall in steel prices. This, impacted EBITDA and margins performance in FY19
• 0 PET at Rs. 226.9 crore as compared to Rs. 244.3 crore
• 0 Net Profit after Tax at Rs. 148.3 crore compared to Rs. 158.1 crore
• o In FY19, the Board of Directors has recommended a final dividend of Rs. 14 per share (Face Value of Rs. 10 per share)

Puriiculurs (Tons)	Q4 FY19	Q4 FY18	2"sz	FY19	FY13	2;:
Hollow Sections	238,281	164,089	45%	766,214	613,667	25%
Block Round Pipes	63,623	47,420	34%	198,044	164,100	21%
Pre-Golvonized 10865 (GP)	86,273	62,594	38%	282,856	241,188	17%
Galvanized Tubes ((31)	30,178	26,727	13%	92,060	1 11,350	.17%
Finished producis	418,355	300,030	39%	1,339,174	1,130,305	19%

Sales Volume Break-up

Commenting on the Company's performance for Q4 & FY2019, Mr. Sanjay Gupta, Chairman, APL Apollo, said,

"We have ended the fiscal on a solid footing despite a subdued operating environment. In FY2019, our sales volume saw a strong growth of 19% to 13.4 lac MTPA, while in Q4 FY19, we registered the highestever quarterly sales volume of 4.2 lac MTPA. The growth was primarily driven by strong demand recovery and increasing contribution from hollow section pipes, Direct Forming Technology (DFT) pipes and Galvanized Tubes (GI) among others.

Over the past few years, APL Apollo has enhanced its product portfolio making it attuned with the products in demand as well as creating demand in certain product categories. In sync with this, we are focusing towards launching new innovative products like Door and Window Frames, Tricoat pipes and further increasing portfolio of our value-added branded products. We are also working towards bringing

in backward integration of thinner materiais, which, we beiieve, wiii significantiy heip improve overaii cost savings & operationai efi'iciencies. The backward integration in conjunction with improving contribution from our vaiue-added products, wiii not oniy position APL Apoiio as a technoiogy-ied giobai steei tubes company, but wiii aiso heip improve the profitabiiity, going forward.

I am also happy to share that the Board of Directors have approved the acquisition of a 200,000 MTPA tube manufacturing unit iocated at Hyderabad, one of the unit of Taurus Vaiue Steei & Pipes, a subsidiary of Shankara Buiiding Products. The piant compiements our existing operations in Bengaiuru and Hosur and wiii boister our manufacturing capacity to 2.3 miiiion MTPA, thereby strengthening APL Apoiio's ieadership position in the domestic and giobai markets. Overaii, the Company is witnessing a steady revivai in voiumes across product categories and has sufi'icient capacities to grow at a 20% CAGR over the next two years. So our focus will be more towards improving our cash flows and Drufitubilitl' in the years ahead."

Key Developments

• o The Board of Directors have approved the acquisition of production unit located at Hyderabad, one of the unit of Taurus Value Steel & Pipes, a subsidiary of Shankara Building Products for a consideration of "' Rs. 70 crore
  • o The manufacturing unit has a production capacity of ~2,00,000 tons per annum the facility includes manufacturing lines for GI pipes and GP pipes that are APL Apollo's high margin and value-added product segments
    • Improving portfolio of these products will enable increased revenue and volume contribution ofvalue-added segments while also leading to steady improvementin operati1g margins
  • o The acquisition will enable APL Apollo to add further capacities at attractive valuations, given the strong demand outlook overthe next few years
  • 0 Furthermore, Shankara has agreed to purchase 2.5 lal<h tonne pipe from the Company in FV2020, which will assist APLApollo's volumes

• o The acquisition has an attractive paybaci< of iess than 3 years and the Cornpany anticipates a quici<turnaround ofthe acquired faciiity in South India
• Entity belonging to promoter category concludes infusion of Rs. 97 crore in APL Apollo through preferential allotment of equity and convertible warrants
  • o The infusion of Rs. 97 crore by an entity beionging to prornoter category in APL Apoiio has been conciuded through preferentiai aiiotrnent of equity and convertibie warrants. The detaiis ofthe aiiotrnent are as foiiows
    • Aiiotrnent of 400,000 Equity shares on preferentiai basis at Rs. 1,800 per equity share to entity beionging to prornoter category
    • Aiiotrnent of 500,000 fuiiy convertibie warrants ofthe Cornpany at Rs. 2,000 per warrant to entity beionging to prornoter category
  • Post the aiiotrnent of Equity s1ares, the paid up capitai of the Cornpany stands Increased from Rs. 23,85,03,810/- (2,38,50,381 Equity Shares of Rs.10/- each) to Rs. 24,25,03,810/- (2,42,50,381 Shares of Rs.10/- each)

About APL Apollo Tubes Limited

APL Apollo Tubes Limited (APL Apollo) *BSE: 533758, NSE: APLAPOLLO+ is one of India's leading branded steel products manufacturers. Headquartered at Delhi NCR, the Company operates 8 manufacturing facilities with a total capacity of 2.1 Million MTPA. It has a PAN-Indian presence with units strategically located in Sikandarabad (4 units), Bangalore, Hosur, Raipur and Murbad. APL Apollo's multi-product offerings include over 1,100 varieties of MS Black pipes, Galvanized Tubes, Pre-Galvanized Tubes, Structural ERW Steel tubes and Hollow Sections.

With state-of—the-art-manufacturing facilities, APL Apollo serves as a 'one-stop shop' for a wide spectrum of steel products, catering to an array of industry applications such as urban infrastructures, housing, irrigation, solar plants, greenhouses and engineering. The Company's vast 3-tier distribution network of over 790 dealers is spread all across India, with warehouses cum- branch offices in over 29 cities

Deepak Goyal	Poojari /Shikha KshirsagarAnoop
Tube LtdAPL Apollo	CDR India
Tel: +91 120 404 1400	Tel: +91 22 6645 1211 /1243
Email: deepakgoya @aplapollo.com	Email: anoop@cdr-india.com
	shikha@cdr-india.com

For more information about us, please visit WWW.aplapolla.cam or contact:

DISCLAIMER:

Certain statements in this document that are not historical facts are forward looking statements. Such forwardlooking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to difi'er materially from those contemplated by the relevantforward-looking statements. APL Apollo Tubes Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.