APL Apollo hits new high

APL Apollo Tubes was full of news yesterday – earnings and a stock split and the stock, which had closed yesterday at Rs.3135, went on to hit a new high today at Rs.3199.It has come off the high and is now just about in the green.  

First the earnings. For Q2FY21, on a 34% (YoY) rise in revenue from operations at Rs.2202 crore, the company posted a 71% rise in net profit at Rs.103. This was mainly on account of the reduction in expenses – it was at 94% of total income v/s 98.5% (YoY).

This boosted the operating profit to Rs.144 crore, up 200%.

The company also announced a stock split from the present Rs.10 FV to Rs.2 - 1 equity share to be split into 5 equity shares and hopes to complete the process in the next 2-3 months.