Surya Roshni's Q2FY26 performance was below expectations. Revenue grew 21% YoY to Rs18.4bn, driven by a 24% YoY increase in steel pipes segment, while LCD segment grew by 7% YoY to Rs4bn. Consolidated EBITDA margin expanded 142bps YoY to 6.4%, driven by steel pipe segment. EBITDA/t for steel pipes increased by 73% YoY to Rs5,013/t, led by improved product mix (API pipes), pricing discipline and operational efficiencies despite a Rs500/t inventory loss. Management has further lowered its volume guidance for the steel pipe segment to 0.98 mnT due to the shortfall in Q1 and expects a consolidated...

APL's Q2FY26 profitability was ahead of our expectations. Revenue grew 9% YoY to Rs52bn, driven by 13% YoY volume growth, mainly supported by improved utilizations at Raipur and Dubai plant, despite a challenging macro environment APL posted highest ever EBITDA, rising 223% YoY (on a low base) to Rs4.5bn, while EBITDA/t increased by 187% YoY and 12% QoQ to Rs5,228, driven by better realizations, operational leverage, and absence of ESOP expenses. Management expects H2FY26 performance to be stronger than H1FY26. Also, APL aims to set-up a plant in Abu Dhabi to cater the EU region. Management has reiterated the FY26 volume growth guidance of 10%-15% and expects to achieve...

Surya Roshni's Q1FY26 performance was below expectations. Revenue declined by 15% YoY to Rs16bn, primarily due to a 20% YoY drop in the steel pipes segment. LCD segment grew by 3% YoY to Rs4bn. Consolidated EBITDA margin contracted 360bps YoY to 4.3%, dragged by both the segments. EBITDA/t for steel pipes fell by 52% YoY to Rs2,922/t, impacted by ~Rs1,000/t inventory loss and ~Rs2,000/t hit from lower volumes, higher fixed cost due to SAP implementation, and a higher share of low margin products. Management guided for 35%-38% YoY revenue growth in steel pipes for Q2FY26 but lowered FY26 sales volume guidance...

APL's Q1FY26 performance was below our expectations. Revenue grew 4% YoY to Rs51.7bn, driven by 10% YoY volume growth, which was offset by 6% YoY decline in realizations due to a drop in steel prices. EBITDA rose 23% YoY to Rs3.7bn, while EBITDA/t increased by 12% YoY to Rs4,683 but declined by 4% QoQ due to higher employee cost related to ESOP expenses and lower volumes. Management expects performance to improve in H2 with conclusion of monsoon and increased govt. spending boosting money supply. However, management has reduced FY26 volume growth guidance to 10%-15% from 15%20% and expect EBITDA/t to range between Rs4,600-Rs5,000/t. We revise our...

We maintain our HOLD rating on the stock.

We downgrade from BUY to HOLD rating on the stock.

Apollo Tricoat's minority shareholders will receive for each equity share held: o One equity share in APL Apollo o Implied premium of 16% on Friday's i.e., 26th Feb,2021 closing price for Apollo Tricoat's shareholders...

Closure of loss making stores to improve profitability For H1, retail business revenues de-grew ~30% YoY to | 492 crore with Q2 witnessing ~18% YoY decline at | 283 crore. The company, which reported EBIT losses in Q1, returned to the black with EBIT margins of 6% in Q2 (down 200 bps YoY. We highlight that Shankara has rationalised its stores with strong focus on higher revenue share and healthier margin. The process has reduced the store count (to 115 at the end of Q2FY21 vis--vis 129 at the end of Q2FY20) but increased the average ticket size (to | 30,640 in Q2FY21 vis-vis | 28,156 reported in Q2FY20). Post an expected decline of ~18% in...

3. We recommend investors to ADD on dips as the company has a strong balance sheet and leading position in the industry which allows it to positioned well to capitalize on these opportunities. 3. Net Working Capital (NWC) cycle stood at 10 days in Q1FY21 vs. 20 days in FY20....

For FY20, topline was at | 846.2 crore (down 24.5% YoY). The decline in topline was on account of lower sales volume, decline in sales realisation and lower trading sales vs. FY19. The decline in sales volume was due to lower demand from the automotive industry. EBITDA for FY20 was at | 39.7 crore (down 41% YoY). In addition to muted demand from the automotive sector, higher cost of inventory built for the planned plant shutdown in Q2FY20, inventory loss due to decline in raw material and electrode prices and higher fixed cost per unit of steel due to low production levels also...

Retail business revenues de-grew 10.5% YoY to | 359.6 crore (~56% of overall revenues) in Q1FY20. EBIT margins of the business segment expanded 83 bps QoQ to 8.1% in Q1FY20. As of Q1FY20, SBP has 129 stores (111 stores on lease basis), with total area of ~5.56 lakh sq ft. The average rental cost for the stores was at | 20.2/sq ft/month. The company is currently not looking at any immediate expansion/addition to its overall retail store count as its near-term focus is to increase retail business at each store level. With this, the management expects revenue growth to remain flattish in...

Retail revenues de-grow 6.9% YoY in Q4FY19 Retail business revenues de-grew 6.9% YoY to | 351.9 crore and contributed ~57% to overall revenues in Q4FY19. EBIT margins for this business contracted 350 bps YoY to 7.3% in Q4FY19 on account of volatility in steel prices. Shankara currently has 134 retail stores and is looking to close down six stores (~21,300 sq ft) mainly in Gujarat as the management does not see Gujarat as its strategic focus. Overall, the company reported same store sales (SSS) de-growth of

The management of Shankara Building Products Ltd (SBPL) now believes that the company's strong future prospects lies in consolidating its position in the industry rather than aggressive store expansions. It has hence cut its store expansion target to 8-10 stores in FY19 (v/s 15-20 stores guided earlier) and aims for a payback period of 3 years. Also, SBPL shall be putting its core focus on select product categories like plumbing & sanitaryware products to achieve growth ahead. It is also bringing strict financial discipline measures like reducing debtor days,...

Shankara reported a weak set of Q2FY19 numbers The topline grew 12.6% YoY to | 643.9 crore on account of 25.8% YoY growth in retail division revenues to | 343.3 crore in Q2FY19 EBITDA margin contracted 235 bps YoY to 4.8% mainly due to a sharp contraction in EBIT margins of channel & enterprise division (1.7% EBIT margin in Q2FY19 vs. 5.5% in Q2FY18). However, EBIT margin for retail division was at 9.7% in Q2FY19 vs. 10.5% in Q2FY18 The bottomline de-grew 47.2% YoY to | 9.1 crore mainly on account...