Apollo Pipes to Enter UPVC Doors and Windows Segment for Market Expansion

On May 20, 2024, Apollo Pipes informed the stock exchanges that the company is adopting a new line of business, which falls in the domain of UPVC Doors and Windows Profiles. This new line of business is an extension of the product range in the polyvinyl chloride (PVC) segment.

The company stated that UPVC Doors and Windows Profiles and UPVC Pipes are both extensively covered under building material products, and hence, there is synergy in the products and customers of both.

This new line of business is expected to diversify Apollo Pipes’s revenue streams. It is also anticipated to expand the company’s market presence, increase its client base, and offer long-term growth potential.

These anticipated benefits reflect the strategic decision to explore and participate in the new line of business that falls within the domain of UPVC Doors and Windows Profiles.

Regarding the estimated investment amount, the company stated that it depends on several factors, such as development costs, scale of operations, regulatory compliance, technologies and equipment, and more. At the initial stage, the company plans to invest approximately ₹45 crore (Rupees Forty-Five Crore Only) in the new line of business. This investment reflects the initial capital outlay required to establish and operationalise the envisioned business activities.

Meanwhile, as another update, the company stated about the commissioning of a new manufacturing facility in Varanasi. This new manufacturing facility will have an annual capacity of 30,000 MT/Annum. The investment required for this facility is ₹120 crore.

In Q4 FY 2024, the company reported revenue of ₹245.8 crore, a decline of 2% YoY and 11% QoQ. Apollo Pipes Ltd’s Profit after Tax (PAT) was ₹6.5 crore, which declined by 57% YoY and 28% QoQ.

In FY 2024, Apollo Pipes reported a revenue of ₹977.1 crore, which increased by 7% compared to the previous financial year. The company’s Profit after Tax was ₹42.4 crore, which increased by 77% compared to FY 2023.

On May 21, 2024, the share price of Apollo Pipes Limited opened at ₹605.00, touching the day’s low at ₹605.00, as of 11:49 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.