Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (February 2016)
36 slides from Apar Industries's investor presentation, February 2016
Slide 1: Corporate Presentation February 2016
Tomorrow’s Progress Today February 2016 Corporate Presentation Apar Industries Ltd. 1 Apar Industries Limited Corporate Presentation
Slide 2: Company Overview
Company Overview Company Overview Segmental Performance Power Sector Overview Financial Performance Annexure 2 Apar Industries Limited Corporate Presentation
Slide 3: Global leader in Conductors & Transformer Oils
Global leader in Conductors & Transformer Oils Significant global presence in power transmission & distribution • Among top 5 Conductors manufacturers and 4th largest Transformer Oils manufacturer in the world. Diverse Portfolio • Over 400 types of Specialty and Automotive oils; largest range of con
Slide 4: With established presence across diverse businesses
With established presence across diverse businesses Conductors Specialty Oils Cables Auto Lubes Since 1958 Since 1969 Since Since1969 2008 Since 2007 Acquired Uniflex in 2008 Renewed focus in auto 23% market share 45% market share Grew sales from Rs 128 Cr lubes with licensing in FY09 to Rs 556 Cr i
Slide 5: And multiple growth drivers in place
And multiple growth drivers in place Revival in domestic market and expansion in new products, markets & businesses Recent launch of UDAY (Ujwal DISCOM Assurance Yojana) Policy Push viz to ensure “24X7 Power To All” aims at permanent Government resolution of DISCOMs issues, which will have multiplie
Slide 6: Capacity in place to fuel future growth
Capacity in place to fuel future growth. . . Strategic investments of over Rs 300 Cr which can manufacture the newly developed products • Setup green field Athola plant of 46,000MT capacity to address growing domestic & export market; emerged as leader in domestic market. • Increased fungible capaci
Slide 7: Improved product mix to drive profits
Improved product mix to drive profits • Increasing demand for higher grade 400KV and 765KV transmission oils. • High efficiency Conductors (HeC) revenue is expected to grow to 7.5% of Conductor’s revenue in FY16. Conductors & Oils • Growing high margin products like Optical Fibre Cables and Elastome
Slide 8: Segmental Performance
Company Overview Company Overview Segmental Performance Segmental Performance Power Sector Overview Financial Performance Annexure 8 Apar Industries Limited Corporate Presentation
Slide 9: Conductors: Largest manufacturer and exporter from India
Conductors: Largest manufacturer and exporter from India • Pioneer in high efficiency Conductors and aluminum alloy rods in India. • Exports to over 78 Countries, registered export house by ministry of commerce. • Supplier to top 25 global turnkey operators. • Vertically integrated producer, full pr
Slide 10: Conductors: Driving growth through key strategic initiatives
Conductors: Driving growth through key strategic initiatives Key growth drivers Improving Domestic High value products Expanded Export market capacities Launch of UDAY Strategically located market Indian market is Will fuel growth in T&D Developing Favorable tax Strong focus on exports; improving wi
Slide 11: Specialty Oils: Continued leadership with a global footprint
Specialty Oils: Continued leadership with a global footprint Revenue (In Rs Cr) 2,395 • Pioneer in manufacturing Transformer Oils in India 2,224 since 1969. 15% CAGR 1,958 2,037 • Largest Indian player in the Power Transformer 1,544 1,404 segment, especially in EHV Segment (220KV to 765KV). 1,107 •
Slide 12: 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 Riding the High road with ENI manufacture ENI branded lubricants, positioned at upper end of the market. • 450 distributors and 15,000 stockists spread across India. • Laun
Slide 13: Cables: Sustained growth in Uniflex
Cables: Sustained growth in Uniflex • Extensive range of Medium & Low Voltage Cables, Revenue (In Rs Cr) Elastomeric Cables, Fiber Optic Cables & Specialty 569 556 Cables. 480 28% CAGR • Growing at CAGR > 25%. 355 404 • Focus on improving profitability through product mix 315 with increased volume i
Slide 14: E-Beam: Game changing technology
E-Beam: Game changing technology • Only site in India with 2 Electron Beams: 1.5 MeV and 3.0 MeV. • Plant commissioned in Q1FY14. • Growing demand from various industries. • Full benefits to be realized in 2-3 years. Wide Application – Other Application – Specialised Wiring Cables Irradiation servic
Slide 15: Power Sector Overview
Company Overview Company Overview Segmental Performance Segmental Performance Power Sector Overview Power Sector Overview Financial Performance Annexure 15 Apar Industries Limited Corporate Presentation
Slide 16: Power sector expected to turnaround post recent govt initiatives
Power sector expected to turnaround post recent govt initiatives Power sector expected to receive investment of about $250 bn in next 5 years • With Increasing Generation capacity and healthy pipeline of projects in the construction phase, SEB’s weak financial health remains the main concern. • Laun
Slide 17: UDAY- biggest policy initiative towards Ujwal Bharat
UDAY- biggest policy initiative towards Ujwal Bharat. . . UDAY- An Integrated approach Expected outcomes State take over of debt/Reduction in Reduction of AT&C loss to 15% in 2018-19 Interest Cost from 32% in 2013-14 Reduction in gap between Average Operational Lower cost Efficiency of Power Rev
Slide 18: Govt's focus on transmission and distribution to drive growth
Govt’s focus on transmission and distribution to drive growth • $50 bn investment is expected in transmission segment in next 5 years. • Strong focus on transmission in 12th 5yr plan and private players participation to drive growth. • Govt has initiated steps to end PGCIL’s privileged position to e
Slide 19: High voltage conductors & transformers to boost demand
High voltage conductors & transformers to boost demand Planned improvements in transmission sector Expected transmission lines addition by Govt 1,74,819 • High capacity 400kV multi-circuit/bundle conductor 1,44,819 lines. 1,06,819 • High Surge Impedance Loading (HSIL) Line. • Increase in current Hig
Slide 20: Financial Performance
Company Overview Company Overview Segmental Performance Segmental Performance Power Sector Overview Power Sector Overview Financial Performance Financial Performance Annexure 20 Apar Industries Limited Corporate Presentation
Slide 21: Maintained strong revenue growth over the years
Maintained strong revenue growth over the years Figures in Rs Cr Sustained 18% CAGR revenue growth driven by growth in all segments. . . . Consolidated Revenue Revenue Geographic Break-up Exports grew at 22% CAGR 5,122 3251 3,449 18% CAGR 4,651 4,633 3078 2569 3,595 2289 3,033 Export, 1555 1,673 33%
Slide 22: And Strong Balance Sheet
And Strong Balance Sheet Stringent credit control systems in place. . . FY11 FY12 FY13 FY14 FY15 Debtor Days 83 88 64 87 90 Inventory Days 59 69 59 80 67 Payables Days 85 85 116 108 112 Low debt /equity ratio. . . FY11 FY12 FY13 FY14 FY15 Current Ratio 1.1 1.2 1.1 1.2 1.2 D/E 0.0 0.1 0.1 0.1 0.1 Int
Slide 23: Annexure
Company Overview Company Overview Segmental Performance Segmental Performance Power Sector Overview Power Sector Overview Financial Performance Annexure 23 Apar Industries Limited Corporate Presentation
Slide 24: Key Milestones
Key Milestones Greenfield Expansion to meet growing export & domestic demand 2013 Conductors plant set up at Athola New Generation Technology to build the largest E-Beam facility in India 2012 Installed 2 E-Beam Accelerators State of the art Research & Development unit set up at Rabale 2010 Global P
Slide 25: Wide and deep product mix
Wide and deep product mix Conductors Specialty Oils Cables Auto Lubes Most Common Transformer Oils For Power Auto Lubes AAC insulation & cooling Power Cables Diesel Engine Oils ACSR Rubber Processing E-Beam Cables for 3-wheelers Oils AAAC Oil: For Tyre & Railways, Wind, Solar Motorcycle Oils High Ef
Slide 26: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries resulting in 31% 3yr CAGR in exports 3 1 2 Warehouse Apar’s presence 1 Australia 2 South Africa 3 Turkey Oil Conductor Cable Adopted a hub and spoke manufacturing and distribution model for specialty oils - allows efficient delivery cy
Slide 27: Strategically located manufacturing units a big strength
Strategically located manufacturing units a big strength Proximity to major ports gives strategic advantage for exports Tax benefits for plants in Union Territory Gujarat Maharashtra Manufacturing Units. Rabale (Maharashtra), Silvassa & Athola (Union Territory of Dadra and Nagar Haveli), Umbergaon &
Slide 28: Strong clientele with long lasting relationships
Strong clientele with long lasting relationships 28 Apar Industries Limited Corporate Presentation
Slide 29: Annexure- Financials
Company Overview Segmental Performance Power Sector Overview Financial Performance Annexure- Financials 29 Apar Industries Limited Corporate Presentation
Slide 30: Balance Sheet Statement – Consolidated: FY15
Balance Sheet Statement – Consolidated : FY15 (In Rs Cr) FY11 FY12 FY13 FY14 FY15 Liabilities Total Shareholder's Funds 351 523 627 696 730 Minority Interest 1 1 2 2 1 Non-current Liabilities: - (a) Long-term borrowings 15 35 33 70 95 (b) Deferred tax liabilities (net) 9 13 10 23 27 (c) Other-long t
Slide 31: Profit & Loss Statement – Consolidated: FY15
Profit & Loss Statement – Consolidated : FY15 (In Rs Cr) FY11 FY12 FY13 FY14 FY15 Revenue from operations (net) 3,033 3,595 4,651 4,632 5,122 Other income 0 0 2 4 2 TOTAL REVENUE (i) 3,033 3,595 4,653 4,636 5,124 EXPENSES: Cost of raw materials and components consumed 2,370 2,945 3,645 3,606 4,112 P
Slide 32: Q3FY16: Profit & Loss Statement – Standalone
Q3FY16 : Profit & Loss Statement – Standalone Particulars (Rs Cr) Q3 FY16 Q3 FY15 % Chg YoY Q2 FY16 % Chg QoQ 9MFY16 9MFY15 % Chg YoY FY15 Net sales 1,179.7 1,290.4 -8.6% 1,241.2 (5.0%) 3,661.5 3,644.9 0.5% 4,968.7 Other Operating Income 6.5 8.4 (22.6%) 9.6 (32.2%) 23.4 28.1 (16.7%) 42.3 Total Opera
Slide 33: Q3FY16: Key Ratios – Standalone
Q3FY16 : Key Ratios – Standalone Key Ratios (%) Q3 FY16 Q3 FY15 Q2 FY16 9MFY16 9MFY15 EBITDA Margin 7.1% 4.3% 7.2% 7.3% 5.6% Net Margin 5.7% 0.2% 2.0% 3.3% 1.1% Total Expenditure/ Total Operating Income 93.1% 95.7% 92.8% 92.8% 94.6% Raw Material Cost/ Total Operating Income 74.0% 80.5% 77.0% 76.0% 7
Slide 34: Q3FY16: Standalone Segment Analysis
Q3FY16 : Standalone Segment Analysis Segment (Rs Cr) Q3 FY16 Q3 FY15 %YoY Q2 FY16 % QoQ 9MFY16 9MFY15 % Chg YoY FY15 Revenue Conductors 542.0 655.6 -17.3% 653.8 (17.1%) 1,835.5 1,645.6 -11.5% 2,320.1 Transformer & Specialty Oils 434.8 501.0 (13.2%) 457.1 (4.9%) 1,355.3 1,627.9 (16.7%) 2,115.2 Power
Slide 35: Shareholding pattern
Shareholding pattern As on Dec 31, 2015 Outstanding shares – 3,84,96,769 Others, 7.4% Major Non-Promoter Shareholders Shareholding (%) Templeton Strategic Emerging Markets Funds 9.45 Bodies Corporate, HDFC Trustee company 6.77 14.7% Reliance Capital 3.52 DII, 11.2% Promoter, Goldman Sachs 2.94 58.2%
Slide 36: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Nisha Kakran Seema Shukla Apar Industries Ltd Phone: +91 22 4215 3659 Phone: +91 124 425 1443 Phone: +91 22 67800400 Mumbai Gurgaon Email: kunder@apar.com Nisha.kakran@four-s.com seema@four-s.com This presentation may have
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