Appollo Ispat Complex Ltd

Appollo Ispat Complex Ltd maintains a debt-to-equity ratio of 0.51 and a current ratio of 2.07, indicating moderate leverage and sufficient short-term liquidity to cover obligations. Free cash flow of BDT 302.85 million and operating cash flow of BDT 117.13 million suggest the company generates positive cash from operations, though capital expenditures of BDT -148.92 million indicate ongoing investment in infrastructure. Profitability metrics show a return on equity (ROE) of 6.1% and return on assets (ROA) of 3.83%, both below the industry median for Iron & Steel firms, which typically report ROE above 8% and ROA above 5%. Gross profit of BDT 1.11 billion and operating income of BDT 930.75 million reflect a gross margin of 19.4% and operating margin of 16.3%, which are in line with the sector but leave room for improvement in cost control. The company’s revenue is concentrated in Bangladesh, with no disclosed international operations, and its product portfolio is heavily weighted toward corrugated iron sheets for rural and semi-urban construction. This geographic and product concentration increases exposure to local demand cycles and raw material price volatility. Outlook for the current fiscal year shows revenue growth of 4.2% year-over-year, driven by increased demand in residential and agricultural sectors. However, the next fiscal year is projected to see a 1.8% decline in revenue due to expected regulatory changes in construction material standards and potential supply chain disruptions. Risk factors include a medium liquidity risk due to negative net cash after subtracting total debt, and a low dilution risk as shares outstanding remain unchanged between basic and diluted measures. The company has not disclosed any recent equity offerings or convertible instruments that would increase dilution pressure. Recent filings and transcripts highlight the company’s focus on expanding its rural market share and improving production efficiency through automation. No material legal or regulatory issues were disclosed in the latest 10-K equivalent filing.