As PVC prices continue to rise, APL Apollo Pipes gains market share
Apollo Pipes posted good Q2FY22 earnings. Revenue is up almost 70 percent and sales volume has grown 18 percent, but margin has contracted to around 15 percent for the company. In an interview with CNBC-TV18, Anubhav Gupta, Chief Strategy Officer at APL Apollo Pipes, shed light on the company's performance.
APL Apollo Pipes posted good Q2FY22 earnings. Revenue is up almost 70 percent and sales volume has grown 18 percent, but margin has contracted to around 15 percent for the company. In an interview with CNBC-TV18, Anubhav Gupta, Chief Strategy Officer at APL Apollo Pipes, shed light on the company's performance.
On pricing, he said, “PVC prices rose sharply in the second quarter and the trend continued in the month of October as well. Simultaneously, we have also taken price hikes in line with our industry peers. Overall in last 3-4 months, we have done at least 4-5 times price revisions. So, we are able to pass on the PVC price increase to our channel partners.”
He added, “Overall price hike would have been in the range of 15 to 20 percent in the last three to four months.”
On margins, Gupta said, “Price hike is going to impact our margins a lot because historically the industry has been working on a pass-through model and today, Apollo Pipes’ brand pool is also becoming very strong. So, we don't see much of a challenge in passing it to our channel partners.”
On growth and market share, he said, “In terms of our revenue growth in the last three to four years, we have outperformed the industry in a significant manner. The growth in the last three or four years has been the highest in the industry. We have taken market share from the unorganized sectors and weak organized peers as well.”
Gupta added, “On our annualised turnover of Rs 800 crore and given that the PVC industry is around Rs 32,000 crore, so the current market share stands at around 2.50 percent and it was 1.50-2 percent two to three years ago. So, we have increased our market share significantly.”
For full management commentary, watch the video.
(Edited by : Dipikka Ghosh)
First Published: Oct 26, 2021 11:39 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM
Celebrity Kangana vs 'royal' Vikramaditya on Himachal's Mandi seat: Clash of richest titans
May 18, 2024 11:11 AM
2024 Lok Sabha Elections | Will Amethi and Rae Bareli see the rise of Priyanka Gandhi as a dominant political figure
May 18, 2024 8:59 AM
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM