On Tuesday, APL Apollo Tubes shares zoomed after the business’s subsidiary acknowledged incentives worth Rs 500 crore by the State Investment Promotion Board of Chhattisgarh.

The stock rose 1.7% on the NSE at Rs 1330.40 at 10:17 am. The stock has gained 17% since January 1.
APL Apollo Tubes, a wholly-owned subsidiary of APL Apollo Building Products Private Limited, will use the grant for manufacturing facility construction at Rigni Village, Balloda Bazar, in Chattisgarh.

The incentive will be used for reduction from stamp duty, exclusion from electricity duty for 15 years and transport subsidy towards exports for 15 years.

In Q1FY24, the company recorded a 56% growth in sales volume YoY to 661,505 tons, said the company updated earnings dated July 1. The value-added segment improved 57% YoY in the April to June quarter.

APL Apollo’s strategy of de-commoditisation is complete. The sales mix will recover further in the coming quarters with the rising influence of innovative products.

APL Apollo Tubes is a steel tube producer and is involved in the business of production of electric resistance welded steel tubes and pipes.

The company’s revenue augmented 23% YoY to Rs 16,213 crore in FY23. Net profit grew 15% to Rs 641 crore YoY in the same period. EBITDA margins fell 93bps YoY.