Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (February 2019)
39 slides from Apar Industries's investor presentation, Feb 12, 2019
Slide 1: Exchange filing cover letter
REGO. OFFICE • MARt<ET1NG OFFICE : 301 /306, PANORAMA COMPLEX, R. C . DUTI ROAD, VADODARA - 390007. INDIA APAR INDUSTRIES LTD. T : (+ 91)(265)2323175 / 2323176 (+ 91) (265) 2322798 F : (+91) (265) 2330309 E : opor.barodo@opor.com uri : www.opor.com SEC/11 02/2019 11 th February, 2019 National Stock
Slide 2: Corporate Presentation February 2019
Corporate Presentation February 2019 Conductors Cables Corporate Presentation Speciality oils & auto lubricants 1 AparApar Industries Limited Corporate Presentation Industries Limited Corporate Presentation
Slide 3: Apar Industries: Tomorrow's progress today
Apar Industries: Tomorrow’s progress today Strong & Sustainable leadership in power sector 3rd largest global manufacturer of Conductors Well-positioned to tap sector opportunity… 4th largest global manufacturer of Transformer oils #1 domestic Cable manufacturer for renewables A leading player in au
Slide 4: Established leadership across segments, well-diversified model
Established leadership across segments, well-diversified model Strategic investments of Rs 675 cr+ since FY13 driving growth in all segments Conductors Specialty Oils Cables Since 1969 Since 2008 Since 1958 Auto lubes since 2007 4th largest global manufacturer of Largest domestic manufacturer 3rd la
Slide 5: Extensive global presence driving exports
Extensive global presence driving exports Presence in 100 countries, Exports revenues up 10% YoY in 9MFY19 at Rs 1,686 crore Adopted a hub and spoke manufacturing and distribution model for specialty oils - allows efficient delivery cycles to global transformer OEM’s across Asia, Africa and Austra
Slide 6: Revenues reach an all-time high in Q3FY19, up 41% YoY
Revenues reach an all-time high in Q3FY19, up 41% YoY 9MFY19 revenues up 36% with increased traction in new products Revenue 2,120 1,886 1,769 1,500 1,499 1,287 1,308 1,306 1,249 1,098 1,148 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Margins impacted by crude volati
Slide 7: Vision 2020 - Transformative growth in all businesses
Vision 2020 - Transformative growth in all businesses Accelerated growth with improving profitability with focus on higher value products Transforming Conductor business by 2020 – 45% higher value products • HEC Conductor to reach 20% of conductor business • Higher Margin with service component • So
Slide 8: Segmental Overview
Segmental Overview Company Overview 7 Apar Industries Limited Corporate Presentation
Slide 9: Conductors: Largest manufacturer and exporter from India
Conductors: Largest manufacturer and exporter from India Rapid growth with improved demand scenario & new higher-value products Volume (In ‘000 MT) • 9MFY19 revenue surpasses FY18’s at Rs 2,586 crore, up 55% YoY. 12% CAGR (FY14-18), up 9% YoY in 9M’FY19 • Order book in Dec’18 at an all-time high of
Slide 10: Driving growth through key strategic initiatives
Driving growth through key strategic initiatives Strategic investments of Rs 267 crore since FY13 • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16, Further shifted 50,000 MT to Jharsuguda Plant (Total - 80,000 MT) in FY18. • Proximity to smelters, for logistical benefits; •
Slide 11: Specialty Oils: Continued leadership with a global footprint
Specialty Oils: Continued leadership with a global footprint Volumes at record highs, automotive sector key growth driver. • Revenue increased 27% YoY to reach Rs 2,162 crore in FY18 Volume (In ‘000 KL) driven by record sales in transformer oil, white oil, industrial oil and automotive oils 4% CAGR
Slide 12: Driving growth by capacity expansion and value added products
Driving growth by capacity expansion and value added products Developments for FY19 • Only Indian company to win new business to supply all the major HVDC projects with transformer oil in FY19 & FY20. • Order of 10,000+ KL won from ABB and GE • Margins to improve in Q4FY19 & FY20 with stable base oi
Slide 13: Auto Lubes: Strategic partnership & aggressive marketing driving growth
Auto Lubes: Strategic partnership & aggressive marketing driving growth • Manufacturing and license agreement with ENI S.P.A to manufacture Riding the high road with ENI ENI branded lubricants, positioned at upper end of the market. • Best in Class lubricants delivering great “Performance and Protec
Slide 14: Cables: Continues strong growth with improving margins
Cables: Continues strong growth with improving margins All sub-segments growing robustly, improving order mix driving profitable growth • Revenue increased 29% YoY to reach Rs 1,116 crore in FY18 Revenue (In Rs Crore) and 51% YoY in 9MFY19 at Rs 1,176 crore. • All sub-segments delivered robust growt
Slide 15: New opportunities in the cables business
New opportunities in the cables business Developments for FY19 • Exploring new opportunities in MVCC, Auto Cables & Railway harnesses. • Started getting approval for E-beam Auto cables • Execution started for Railway harness business • Higher execution with added capacity at both HT & LT XLPE segmen
Slide 16: Well-positioned to capture industry growth
Well-positioned to capture industry growth • Apar targets T&D & renewables through conductors, cables and T-oils; Railways by copper conductors and elastomeric cables, defense by elastomeric cables, automotive by auto lubes, & telecom by OFC cables products. • First mover advantage in key products.
Slide 17: Power Sector Overview
Power Sector Overview Company Overview 16 Apar Industries Limited Corporate Presentation
Slide 18: Power sector on a turnaround post recent govt initiatives
Power sector on a turnaround post recent govt initiatives Power sector expected to receive investment of Rs 11.56 trillion in 2017-22 • India’s power demand is expected to grow at 6.5-6.8% CAGR in FY19-23 Per capita electricity consumption (India) versus 3.8% CAGR in FY14-18, driven by high latent d
Slide 19: UDAY- biggest policy initiative towards Ujwal Bharat
UDAY- biggest policy initiative towards Ujwal Bharat • Debt take over by the state resulting in reduction in interest cost Highlights • Lower cost of power • Operational efficiency • Enabling quarterly Tariff Increase • Reduction in gap between Average Revenue Realized (ARR) & Average Cost of Supply
Slide 20: Govt's focus on transmission and distribution to drive growth
Govt’s focus on transmission and distribution to drive growth End of 10th End of 11th End of 12th As on End of 13th System Type plan plan plan Dec'18 plan (Targeted) AC transmission Lines(In C Kms) 1,90,251 2,48,049 3,52,295 3,90,388 4,50,700 HVDC (In C Kms) 5,872 9,432 15,556 15,556 19,815 Total (I
Slide 21: 13th plan to add further transmission and substation capacities
13th plan to add further transmission and substation capacities Growth in transmission lines (In ckm) 2,03,644 Planned improvements in transmission sector 1,77,201 1,90,325 1,73,715 1,57,787 1,63,268 • High capacity 400kV multi-circuit/bundle conductor lines. • High Surge Impedance Loading (HSIL) Li
Slide 22: Financial Performance
Financial Performance Company Overview 21 Apar Industries Limited Corporate Presentation
Slide 23: FY18, 9MFY19 deliver strong revenue growth in all segments
FY18, 9MFY19 deliver strong revenue growth in all segments Cables & Conductors’ 9MFY19 revenues surpass FY18’s Consolidated Revenue Revenue Geographic Break-up Exports grew at 7% CAGR (FY18) 3,297 3,336 3,297 3,736 3,062 5,823 5,504 5,122 5,082 4,840 2,087 4,632 1,825 Export, 1,570 1,744 1,544 36% D
Slide 24: Margins transiently impacted due to macro headwinds in Oils division
Margins transiently impacted due to macro headwinds in Oils division, expected to improve in FY20. Figures in Rs crore, consolidated financials EBITDA / Margin PAT / Margin 550 6.5% 4.9% 7.2% 8.8% 7.1% 6.1% 240 2.4% 1.9% 2.4% 3.6% 2.5% 5.0% 10.0% 1.0% 1.7% 450 425 412 0.0% 176 190 0.0% 367 337 145 3
Slide 25: Strong Balance Sheet
Strong Balance Sheet Stringent credit control systems in place. . . FY14 FY15 FY16 FY17 FY18 H1FY19 Debtor Days 87 90 78 95 108 101 Inventory Days 80 67 55 75 76 83 Payables Days 108 112 100 134 160 151 Low debt /equity ratio. . . FY14 FY15 FY16 FY17 FY18 H1FY19 Current Ratio 1.2 1.2 1.2 1.2 1.2 1.2
Slide 26: Annexure
Annexure Company Overview 25 Apar Industries Limited Corporate Presentation
Slide 27: Key Milestones
Key Milestones Commissioning of Sharjah Plant; Signed agreement with Set up Hindalco for Conductors Conductors Plant in Conductor Jharsuguda s plant set up at Acquired Installed 2 E- Athola Entered into Uniflex Cables Global Beam Auto Lubes to diversify Presence in Accelerators segment via into Cabl
Slide 28: Wide and deep product mix
Wide and deep product mix Conductors Specialty Oils Cables Auto Lubes High Efficiency Transformer Oils For Power TACSR Auto Lubes insulation & cooling Power Cables Diesel Engine Oils for STACIR Rubber Processing Oil: Elastomeric and Flexible Commercial and GZTACSR For Tyre & Polymer Ind Cables Agric
Slide 29: Strategically located manufacturing units a big strength
Strategically located manufacturing units a big strength Proximity to major ports gives strategic advantage for exports Orissa Gujarat Maharashtra Manufacturing Units. Rabale (Maharashtra), Silvassa & Athola (Union Territory of Dadra and Nagar Haveli), Umbergaon & Khatalwad (Gujarat) Jharsuguda (Ori
Slide 30: Strong clientele with long lasting relationships
Strong clientele with long lasting relationships 29 Apar Industries Limited Corporate Presentation Apar Industries Limited Corporate Presentation
Slide 31: Annexure: Financials
Annexure: Financials Company Overview 30 Apar Industries Limited Corporate Presentation
Slide 32: Consolidated Profit & Loss Statement (Historical)
Consolidated Profit & Loss Statement (Historical) FY14 FY15 FY16 FY17 FY18 Revenue from operations (net) 4,632 5,122 5,551 5,289 5,939 Other income 4 2 10 16 11 TOTAL REVENUE (i) 4,636 5,124 5,562 5,305 5,950 EXPENSES: Cost of Raw Materials 3,675 4,085 3,905 3,573 4,495 Employee benefits expense 67
Slide 33: Consolidated Balance Sheet Statement (Historical)
Consolidated Balance Sheet Statement (Historical) (In Rs Cr) FY14 FY15 FY16 FY17 FY18 Liabilities Total Shareholder's Funds 696 730 854 1,036 1,108 Minority Interest 2 1 Non-current Liabilities: (a) Long-term borrowings 70 95 84 91 162 (b) Deferred tax liabilities (net) 23 27 31 46 35 (c) Other-long
Slide 34: Consolidated Balance sheet Statement as on 30th Sep, 2018
Consolidated Balance sheet Statement as on 30th Sep, 2018 Figures in Rs crore Consolidated Consolidated Sr.No Particulars As at 30 Sep, As at 31 Sr.No Particulars As at 30 Sep, As at 31 2018 March, 2018 2018 March, 2018 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Pl
Slide 35: Q3 FY19: Consolidated Profit & Loss Statement
Q3 FY19: Consolidated Profit & Loss Statement Particulars (Rs Cr) Q3 FY19 Q3 FY18 % Chg YoY Q2 FY19 % Chg QoQ 9MFY19 9MFY18 % Chg YoY Total Operating Income 2,119.1 1,498.9 41.4% 1,884.7 12.4% 5,499.3 4,171.2 31.8% Total Expenditure 2,004.7 1,401.3 43.1% 1,775.8 12.9% 5,166.9 3,889.5 32.8% Cost of R
Slide 36: Q3 FY19 Financials
Q3 FY19 Financials Key Ratios In %, Consolidated Q3 FY19 Q3 FY18 Q2 FY19 9MFY19 9MFY18 EBITDA Margin 5.5% 6.7% 6.0% 6.2% 7.2% Net Margin 1.6% 2.6% 1.5% 1.7% 2.6% Total Expenditure/ Total Net Operating 94.6% 93.5% 94.2% 94.0% 93.0% Income Raw Material Cost/ Total Net Operating 80.1% 79.2% 79.9% 79.1%
Slide 37: Q3 FY19: Consolidated Segment Analysis
Q3 FY19: Consolidated Segment Analysis Segment (Rs Cr) Q3 FY19 Q3 FY18 %YoY Q2 FY19 % QoQ 9MFY19 9MFY18 % Chg YoY Revenue Conductors 1,052.2 638.6 64.8% 898.2 17.1% 2,585.9 1,721.3 50.2% Transformer & Specialty Oils 727.3 568.4 28.0% 630.1 15.4% 1,933.6 1,629.9 18.6% Power & Telecom Cables 419.8 285
Slide 38: Shareholding pattern
Shareholding pattern As on December 31, 2018 Outstanding shares – 3,82,68,619 Others, 9.93% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 8.99 Bodies, 1.77% Reliance Capital 6.50 L & T Mutual Fund Trustee Ltd 6.05 DII, 23.85% Goldman Sachs 2.64 Promoter, Raiffeisen
Slide 39: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Rupam Prasad Seema Shukla Apar industries Ltd Phone: +91 83750 48395 Phone: +91 124 425 1443 Phone: +91 22 67800400 rupam.prasad@four-s.com seema@four-s.com Email: kunder@apar.com Safe Harbor: This presentation may have ce
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