APL Apollo Tubes (APL) reported better than expected profitability for Q2FY20. Although EBITDA/tonne fell to Rs1,977 (-30.3% YoY, -38.5% QoQ), it was better than our forecast of Rs1,800. EBITDA fell 42.4% QoQ to Rs720 mn due to inventory loss as steel prices fell sharply (Rs5,000/tonne) during the quarter. There was a tax reversal of Rs341 mn vs. our estimate of Rs3 mn. Hence, net profit at Rs598 mn was significantly above our forecast. Cash flow from operations improved to Rs3 bn in H1FY20 compared...