APL Apollo Tubes shares gained on Tuesday after the company’s subsidiary received incentives worth Rs 500 crore by the State Investment Promotion Board of Chhattisgarh.
The stock is up 1.7 percent at Rs 1330.40 at 10.17 am on the National Stock Exchange. The stock has gained 17 percent since January 1.
APL Apollo Tubes, wholly-owned subsidiary, APL Apollo Building Products Private Limited will use the grant for building a manufacturing facility at Rigni Village, Balloda Bazar in Chattisgarh, said the company in an exchange filing dated July 10.
The incentive will be used for relaxation from stamp duty, exemption from electricity duty for 15 years and transport subsidy towards exports for 15 years.
In Q1FY24, the company registered a 56 percent growth in sales volume year-on-year to 661,505 ton, said the company in an earnings update dated July 1. The value added segment improved 57 percent year-on-year in the April to June quarter.
“APL Apollo’s strategy of de-commoditization is intact. The sales mix will improve further in coming quarters with rising contribution of innovative products,” said the company in the earnings update.
APL Apollo Tubes is a steel tube manufacturer and is engaged in the business of production of electric resistance welded steel tubes and pipes.
The company’s revenue increased 23 percent year-on-year to Rs 16,213 crore in FY23. Net profit grew 15 percent to Rs 641 crore year-on-year in the same period. EBITDA margins fell 93 basis points year-on-year.
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