Apar Industries Limited · NSE:APARINDS
Apar Industries — Q3 FY2021 Earnings Presentation
27 slides from Apar Industries's earnings presentation, Feb 4, 2021
Slide 1: Investor Update cover letter to stock exchanges
{APAR Tomorrow s solutions today SEC/0402/2021 04th February, 2021 O4th January, 2021 National Stock Exchange of lndia Ltd. BSE Ltd. "Exchange Plaza", Corporate Relationship Department, C-1, Block G, 27th Floor, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai
Slide 2: Apar Industries Ltd. Q3 FY21 Investor Update
Apar Industries Ltd. Q3 FY21 Investor Update Q3 FY21 Investor Update
Slide 3: Safe Harbor
Safe Harbor This presentation may have certain statements that may be “forward looking” including those relating to general business plans and strategy of Apar Industries Ltd., its future outlook and growth prospects. The actual results may differ materially from these forward looking statements due
Slide 4: Q3 FY21: Adj. PAT up 2.5x driven by Oils profitability
Q3 FY21: Adj. PAT* up 2.5x driven by Oils profitability Revenue EBITDA PAT Adjusted PAT* Rs 1,699 crore Rs 163 crore Rs 82 crore Rs 93 crore Down 7% YoY, Up 37% YoY Up 125% YoY Up 154% YoY Up 13% QoQ Margin at 9.6%, up 312 bps Margin at 4.9%, up 286 bps Margin at 5.5%, up 347 bps • Revenue impacted
Slide 5: 9M FY21: Adjusted PAT up 10% YoY despite pandemic
9M FY21: Adjusted PAT* up 10% YoY despite pandemic Revenue EBITDA PAT Adjusted PAT* Segmental-mix Cables Rs 4,491 crore Rs 316 crore Rs 113 crore Rs 123 crore Lubricants (Auto & 18% Conductor Industrial) s Down 21% YoY Down 13% YoY up 1% YoY up 10% YoY 9% 46% Margin at 7.0%, up 59 bps Margin at 2.5%
Slide 6: Business Performance
Business Performance Q3 FY21 Investor Update 5
Slide 7: Conductors: Q3 FY21 highlights
Conductors: Q3 FY21 highlights Revenue Volume • Domestic revenues declined 28% YoY due to subdued demand for conventional conductors and HEC led by: Rs 737 crore 31,671 MT • Delayed tendering • Lower funding of state transmission projects with state funds Down 15% YoY Down 13% YoY channelled towards
Slide 8: Conductors: 9M FY21 highlights
Conductors: 9M FY21 highlights Revenue Volume • Domestic revenues declined 44% YoY due to COVID-19 impact. Rs 2,075 crore 97,329 MT • Exports revenue up 4% YoY; contributed 53% to revenue Down 26% YoY Down 20% YoY compared to 38% in 9M FY20. • HEC revenue contribution at 14% in 9M FY21 compared to 1
Slide 9: Speciality Oils & Lubricants: Q3 FY21 highlights
Speciality Oils & Lubricants: Q3 FY21 highlights Revenue Volume • Revenue growth driven by 30% YoY growth in exports with strong global demand for all products. Rs 692 crore 1,20,205 MT • Highest Q3 sales volume in last 4 years. Up 18% YoY Up 18% YoY • Exports contribution at 41% compared to 37% in
Slide 10: Speciality Oils & Lubricants: 9M FY21 highlights
Speciality Oils & Lubricants: 9M FY21 highlights Revenue Volume Domestic revenue impacted mainly due to COVID 19 pandemic. Rs 1,642 crore 2,95,726 MT Exports revenue up 9% YoY, Exports revenue contribution Down 8% YoY Down 4% YoY at 43% versus 36% in 9M FY20. Hamriyah plant’s capacity utilisat
Slide 11: Lubricants: 29% YoY growth in Q3FY21 revenues
Lubricants: 29% YoY growth in Q3FY21 revenues • Q3 FY21 Revenue Volume Industrial Oil volumes up 19% YoY. • Automotive volumes up 31% YoY driven by both Rs 179 crore 19,164 MT agricultural and retail segment. Up 29% YoY Up 28% YoY 9M FY21 Revenue Volume • Strategic focus on the agri lube segment has
Slide 12: Cables: Q3 FY21 highlights
Cables: Q3 FY21 highlights Revenue EBITDA • Domestic market saw reduced overall market demand with highly un-remunerative prices. Rs 322 crore Rs 27 crore • Exports contributed 16% to revenue in Q3 FY21, up from Down 18% YoY Down 36% YoY 13% in Q3 FY20. Margin at 8.3%, • Power cables continue to be
Slide 13: Cables: 9M FY21 highlights
Cables: 9M FY21 highlights Revenue EBITDA • Revenue declined due to COVID-19 disruption which resulted in subdued demand in domestic market. Rs 826 crore Rs 46 crore • Export revenues up 1% YoY, revenue share at 18% in Down 28% YoY Down 66% YoY 9M FY21, up from 13% in 9M FY20. Margin at 5.6%, • Pres
Slide 14: Company Overview
Company Overview Q3 FY21 Investor Update 13
Slide 15: Apar Industries at a glance
Apar Industries at a glance Strong & Sustainable leadership Powering ahead with new higher- value products • Among the largest global manufacturers of Conductors Vast range launched with in-house R&D. • 3rd largest global manufacturer of Transformer oils • Conductors - Copper Conductors for Railways
Slide 16: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers Strong leadership & competitive edge Strategic focus on higher-value products (38% in FY20) 1.8 lakh MT p.a. capacity Adj. EBITDA per MT up 20% YoY in FY20. FY20 revenue of Rs 3,624 crore, 9% FY16-FY20 CAGR Rs 367 crore invested in FY14-FY20 • Lar
Slide 17: Specialty Oils & Lubricants – largest global manufacturer of transformer oils
Specialty Oils & Lubricants – 3 largest global manufacturer of transformer rd oils Strong leadership & competitive edge Strategic focus on higher-value products Leading domestic player in auto lubes. Rs 208 crore invested in FY14-FY20 FY20 revenue of Rs 2,323 crore, 6% FY16-FY20 CAGR. Lubricants (Au
Slide 18: Cables - Largest domestic player in renewables
Cables - Largest domestic player in renewables Strong leadership & competitive edge Strategic focus on higher-value products 60% share in domestic wind sector Rs 295 crore invested in FY14-FY20 FY20 revenue of Rs 1,601 crore, 24% FY16-FY20 CAGR. • Green-field Khatalwad plant for E-beam Elastomeric C
Slide 19: Financial performance
Financial performance Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 34% in FY20 EBITDA* & margin 7,971 475 468 Exports Domestic 500 20% 7,465 450 425 412 18% 5,528 400 367 16% 5,823 4,910 316 5,082 350 14% 4,840 4,491 3,736 300 12% 3,336 3,297 250 10% 2,44
Slide 20: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributed 43% to 9M FY21 revenues from 32% in 9M FY20. 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 Au
Slide 21: Strong industry growth drivers
Strong industry growth drivers • Union Budget 2021-22: A revamped reforms-based result- • Global shift towards renewables: World invested $501 linked power distribution sector scheme will be launched billion in 2020 (up 9% YoY) in energy transition sectors with an outlay of Rs 3,05,984 crores over 5
Slide 22: Annexures
Annexures Q3 FY21 Investor Update 21
Slide 23: Q3 FY21: Consolidated Profit & Loss Statement
Q3 FY21: Consolidated Profit & Loss Statement Particulars (Rs crore) Q3 FY21 Q3 FY20 % Chg YoY Q2 FY21 % Chg QoQ 9M FY21 9M FY20 % Chg YoY Gross sales 1,703.8 1,822.5 -7% 1,468.2 16% 4,456.1 5,603.1 -20% Other Operating Income 10.3 14.2 -27% 12.5 -18% 31.7 44.2 -28% Total Operating Income 1,714.2 1,
Slide 24: Q3 FY21: Financials
Q3 FY21: Financials Key Ratios Q3 FY21 Q3 FY20 Q2 FY21 9M FY21 9M FY20 EBITDA Margin 9.7% 6.8% 8.2% 7.3% 6.7% Net Margin 4.8% 2.0% 3.6% 2.5% 2.0% Total Expenditure/ Total Net Operating Income 90.5% 93.3% 92.0% 92.9% 93.5% Raw Material Cost/ Total Net Operating Income 72.0% 75.9% 72.9% 74.7% 77.3% St
Slide 25: Q3 FY21: Consolidated Segment Analysis
Q3 FY21: Consolidated Segment Analysis Segment (Rs crore) Q3 FY21 Q3 FY20 % Chg YoY Q2 FY21 % Chg QoQ 9M FY21 9M FY20 % Chg YoY Revenue Conductors 737.4 868.3 -15% 628.4 17% 2,074.9 2,786.0 -26% Transformer & Specialty Oils 691.8 587.4 18% 598.6 16% 1,642.1 1,778.0 -8% Power & Telecom Cables 322.0 3
Slide 26: Shareholding pattern
Shareholding pattern As on December 31, 2020 Outstanding shares – 3,82,68,619 Others, 11.86% Major Non-Promoter Shareholders Shareholding (%) Corporate Bodies, HDFC Trustee company 9.25 1.56% L & T Mutual Fund Trustee Ltd 5.28 Nippon Life India Trustee Ltd. 4.70 DII, 21.21% Goldman Sachs 2.23 Promot
Slide 27: 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: sr.kunder@apar.com Safe Harbor: This presentation may have