Apar Industries Limited · NSE:APARINDS
Apar Industries — Q4 FY20 Earnings Presentation
30 slides from Apar Industries's earnings presentation, 2020
Slide 1: Q4 FY20 Earnings Presentation
Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q4 FY20 Earnings Presentation Corporate Presentation Apar Industries Limited Earnings Presentation | Q4 FY20 1
Slide 2: 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 3: FY20 Highlights: Resilient performance despite unprecedented headwinds
FY20 Highlights: Resilient performance despite unprecedented headwinds Higher-value products sustain profitability amidst domestic market slowdown & loss of year-end demand due to COVID19 Revenue EBITDA* PAT Net Debt/Equity Avg. ROE Rs 7,465 crore Rs 468 crore Rs 135 crore 0.12x 14% Down 6% YoY EBIT
Slide 4: Gearing up to navigate through COVID19 pandemic disruptions
Gearing up to navigate through COVID19 pandemic disruptions Challenging FY21 ahead, recovery possible in H2 Indian economy to contract by 5% in FY21, Q1 FY21 GDP to shrink 25% (CRISIL). Business loss of ~1.5 months due to lockdowns. Delayed tenders, and execution at customers end due to labour issue
Slide 5: Indian power sector update
Indian power sector update Rs. 90,000 crore bailout package for the stressed DISCOMs as a part of the Atmanirbhar Bharat Abhiyan is to tide the COVID19 pandemic. Discom cash losses may almost double to Rs 58,000 crore in FY21. Amendment of Electricity Act 2003 (draft proposed) to bring distribution
Slide 6: Table of Contents: Financial Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY20 6
Slide 7: FY20: Multiple headwinds impact, higher-value products help improve margins
FY20: Multiple headwinds impact, higher-value products help improve margins Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) FY20 7,465 468 (6.3%) 135 (1.8%) 6% 1% 1% FY19 7,971 475 (6.0%) 136 (1.7%) Revenue down 6% YoY, with decline across all segme
Slide 8: Q4 FY20: COVID19 shutdown impacts performance, PAT down 47%
Q4 FY20: COVID19 shutdown impacts performance, PAT down 47% Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q4 FY20 1,814 103 (5.7%) 23 (1.3%) 26% 25% 47% Q4 FY19 2,466 137 (5.6%) 44 (1.8%) Revenue down 26% YoY due to lower execution as COVID19 pand
Slide 9: Table of Contents: Business Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY20 9
Slide 10: Conductors FY20: Lower revenue but higher HEC share drives adj. EBITDA per MT up
Conductors FY20: Lower revenue but higher HEC share drives adj. EBITDA per MT up 20% YoY Consolidated financials, Figures in Rs crore Revenue EBITDA EBITDA per MT EBITDA EBITDA post adj* Volume (MT) (Margin %) (Rs per MT) (post adj*) (Rs per MT) FY20 3,624 11,784 171 (4.7%) 10,790 1,58,104 186 (5.1%
Slide 11: Conductors Q4 FY20: Lockdown impacts revenues
Conductors Q4 FY20: Lockdown impacts revenues Consolidated financials, Figures in Rs crore Revenue EBITDA EBITDA per MT EBITDA EBITDA post adj* Volume (MT) (Margin %) (Rs per MT) (post adj*) (Rs per MT) Q4 FY20 838 13,212 41 (4.9%) 11,206 36,444 48 (5.7%) 37% 16% 101% 3% 68% 42% Q4 FY19 1,329 41 (3.
Slide 12: Oils FY20: Subdued demand & lockdown impact performance
Oils FY20: Subdued demand & lockdown impact performance Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) FY20 2,323 134 (5.8%) 3,317 121 (5.2%) 2,990 4,03,626 12% 0.1% 6% 6% 0.3% 6% FY19 2,630 134 (5
Slide 13: Oils Q4 FY20: Lockdown impacts performance
Oils Q4 FY20: Lockdown impacts performance Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) Q4 FY20 545 25 (4.5%) 2,533 20 (3.6%) 2,030 96,921 22% 32% 19% 50% 40% 16% Q4 FY19 696 36 (5.2%) 3,111 39 (
Slide 14: Cables FY20: EBITDA (Post adj*) sustained over 11%
Cables FY20: EBITDA (Post adj*) sustained over 11% Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) FY20 1,601 180 (11.2%) 178 (11.1%) 5% 6% 7% FY19 1,684 192 (11.4%) 190 (11.3%) Revenue down marginally at Rs 1,601 crore mainly due to lower domestic revenues.
Slide 15: Cables Q4 FY20: Lockdown impacts domestic revenues, exports up 2.8x
Cables Q4 FY20: Lockdown impacts domestic revenues, exports up 2.8x Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q4 FY20 447 44 (9.8%) 43 (9.5%) 12% 37% 39% Q4 FY19 508 69 (13.7%) 70 (13.7%) * After adjusting open period forex Revenue down 12% YoY impacte
Slide 16: Table of Contents: Company Overview
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY20 16
Slide 17: Apar Industries at a glance
Apar Industries at a glance FY21 to be a year of COVID19 led disruption but medium-term demand drivers are strong Strong & Sustainable leadership Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils #1 domestic Cable manufacturer for renewables A le
Slide 18: Conductors: One of the largest global manufacturers
Conductors: One of the largest global manufacturers Strong leadership & competitive edge One of the largest global manufacturers – 1.8 lakh MT p.a. capacity, FY20 revenue of Rs 3,624 crore • Largest manufacturer in India. • Pioneer in aluminium alloy rod & conductors. • Technology tie up with CTC-Gl
Slide 19: Speciality Oils: 4th largest global manufacturer of Transformer Oils
Speciality Oils: 4th largest global manufacturer of Transformer Oils Strong leadership & competitive edge 4th largest global manufacturer of transformer oils, 45% market share. Leading domestic player in auto lubes. FY20 revenue of Rs 2,323 crore, 5.42 lakh KL capacity • Preferred supplier to over 8
Slide 20: Cables: Largest domestic manufacturer in renewables
Cables: Largest domestic manufacturer in renewables Strong leadership & competitive edge Largest domestic manufacturer for renewables – 60% share in wind sector. FY19 revenue of Rs 1,601 crore. • Launched India’s most advanced E-beam facility. • Largest & most innovative Indian supplier to the Nucle
Slide 21: Sustained financial performance over the years
Sustained financial performance over the years Increased share of new higher-value added products sustains profitability in challenging markets Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 34% EBITDA & margin 475 468 7,971 5,528 4,910 500 425 412 20% 7,46
Slide 22: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 34% to FY20 revenues 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 Australia. Presence in
Slide 23: Table of Contents: Annexure
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY20 23
Slide 24: Q4 FY20: Consolidated Profit & Loss Statement
Q4 FY20: Consolidated Profit & Loss Statement Particulars (Rs crore) Q4 FY20 Q4 FY19 % Chg YoY Q3 FY20 % Chg QoQ FY20 FY19 % Chg YoY Total Operating Income 1,814.5 2,464.6 -26% 1,836.6 -1% 7,461.7 7,963.9 -6% Total Expenditure 1,708.3 2,329.2 -27% 1,713.5 0% 6,986.0 7,496.1 -7% Cost of Raw Materials
Slide 25: Q4 FY20 Financials: Key Ratios
Q4 FY20 Financials Key Ratios Key Ratios (%) Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 EBITDA Margin 5.9% 5.7% 6.8% 6.5% 6.1% Net Margin 1.3% 1.8% 2.0% 1.8% 1.7% Total Expenditure/ Total Net Operating Income 94.1% 94.5% 93.3% 93.6% 94.1% Raw Material Cost/ Total Net Operating Income 76.5% 80.6% 75.9% 77.1%
Slide 26: Q4 FY20: Consolidated Segment Analysis
Q4 FY20: Consolidated Segment Analysis Segment (Rs crore) Q4 FY20 Q4 FY19 % Chg YoY Q3 FY20 % Chg QoQ FY20 FY19 % Chg YoY Revenue Conductors 838.1 1,329.3 -37% 868.3 -3% 3,624.0 3,915.2 -7% Transformer & Specialty Oils 544.8 696.3 -22% 587.4 -7% 2,322.8 2,629.9 -12% Power & Telecom Cables 446.7 507.
Slide 27: Consolidated Balance sheet Statement as on March 31, 2020
Consolidated Balance sheet Statement as on March 31, 2020 Figures in Rs crore As at Sr.No Particulars As at 31.03.2020 Sr.No Particulars As at 31.03.2020 As at 31.03.2019 31.03.2019 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Plant and Equipment 830.2 703.7 (a) Equi
Slide 28: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows In Rs crore FY20 FY19 Cash flow from operating activities Profit before tax 169.4 216.2 Adjustments for - Depreciation on non current assets 76.2 63.1 Amortisation of Right of use assets 7.8 - Amortisation of intangible assets 3.1 3.6 (Gain)/loss on sale of prope
Slide 29: Shareholding pattern
Shareholding pattern As on March 31, 2020 Outstanding shares – 3,82,68,619 Others, 11.10% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 9.25 Bodies, 1.38% Reliance Capital 6.30 L & T Mutual Fund Trustee Ltd 6.12 DII, 22.02% Goldman Sachs 2.35 Promoter, 59.69% Raiffe
Slide 30: 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