APL Apollo Tubes on Wednesday said that it expects to be net debt-free in another two quarters.

“In coming one or two quarters, we will be a net debt-free company," said Deepak Goyal, CFO of APL Apollo Tubes in an interview with CNBC-TV18.

The company's debt reduced by Rs 100 crore in the third quarter, he said.

According to him, APL Apollo Tubes is expecting almost 20 percent volume growth in the next year.

“For this year, we will close positive growth and for next year, we are targeting almost 20 percent growth,” Goyal said.

On earnings performance, he said, “In the last six months we are observing very good demand from rural and semi-urban segments. Demand has improved in these segments. In this quarter, we are mainly focused on the margin expansion and our margins have improved by Rs 1,200 per tonnes.”

“Better product mix - 60 percent was contributed by the value-added products, brand promotion activity, and cost control altogether improved our profitability in this quarter," he said.

On EBITDA per tonne, Goyal said, “Our margins for the long term has improved by Rs 1,000 per tonnes, now our range is Rs 4,000-5,000 per tonnes. In the long term, we can expect to maintain it. Earlier our value-added product contributed almost 40 percent, now it is 60 percent and we are targeting 75 percent in the years to come.”

To know more, watch this video.

(Edited by : Niral Sharma)

First Published:Jan 27, 2021 12:39 PM IST