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APL Apollo confident of delivering Rs 4-4.5k/ tonne kind of margin on sustainable basis

Updated : June 04, 2021 09:52:59 IST

APL Apollo expects to achieve double-digit volume growth in the non-pandemic period, Anubhav Gupta, chief strategy officer, told CNBC-TV18.

APL Apollo reported earnings for the March-ended quarter. The operating profit surged over 70 percent and the contribution from value-added products rose to 57 percent from the earlier 45 percent.

“For next 3-4 years, we can create a new market in the new segments, which will be linked to construction, and even with 50-56 percent kind of market share, we can maintain double-digit volume growth in the non-pandemic period,” Gupta said.

According to him, better product mix, cost control and brand premium is aiding the margin. “These three drivers are very much sustainable, which gives us a margin of above Rs 4,000 per tonne. We believe that our system is capable of delivering Rs 4000-4500 per tonne kind of margin on a sustainable basis,” said Gupta.

For the entire management interview, watch the video.
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