Apar Industries Limited · NSE:APARINDS
Apar Industries — Q2 FY22 Earnings Presentation
30 slides from Apar Industries's earnings presentation, Nov 1, 2021
Slide 1: Investor Update cover letter to stock exchanges
ff APAR Tomo rrow 's so lu t ions t o da y SEC/0111/2021 1st November, 2021 National Stock Exchange of India Ltd. BSE Ltd "Exchange Plaza", Corporate Relationship Department, C-1, Block G, 271h Floor, Phiroze Jeejeebhoy Towers , Sandra- Kurla Complex, Dalal Street, Sandra (E), Fort, Mumbai - 400 051
Slide 2: APAR Industries Ltd. Q2 & H1 FY22 Investor Update
APAR Industries Ltd. Q2 & H1 FY22 Investor Update
Slide 3: Safe Harbour
Safe Harbour 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 outlook and growth prospects. The actual results may differ materially from these forward- looking statements due to s
Slide 4: Q2 FY22: Profitable momentum in a challenging environment
Q2 FY22: Profitable momentum in a challenging environment Consolidated Financials | Figures in INR crore Revenue EBITDA PAT 2,272 128 57 Up 53% YoY Up 8% YoY | Up 17% from Q2FY20 # Up 6% YoY | Up 68% from Q2FY20 # Up 24% from Q2FY20# Margin at 5.6% | 7.9% (Q2FY21) | 6.0% (Q2FY20#) Margin at 2.5% | 3
Slide 5: H1 FY22: Strong recovery, PAT up 59% from pre-COVID levels
H1 FY22: Strong recovery, PAT up 59% from pre-COVID levels Consolidated Financials | Figures in INR crore Revenue EBITDA PAT 4,093 266 119 Up 47% YoY Up 73% YoY | Up 8% from H1FY20 # Up 292% YoY | Up 59% from H1FY20 # Up 7% from H1FY20# Margin at 6.5% | 5.5% (H1FY21) | 6.4% (H1FY20#) Margin at 2.9%
Slide 6: Business Performance
Business Performance APAR
Slide 7: Conductors: Q2 FY22 Highlights
Conductors: Q2 FY22 Highlights Revenue up 71% YoY and 20% from pre-COVID level (Q2FY20). Revenue Volume o Volumes impacted due to delay in order execution as the ongoing challenges of increased ocean freight, Aluminium premium & steel INR 1,080 crore 29,191 MT prices further aggravated. o Exports
Slide 8: Conductors: H1 FY22 Highlights
Conductors: H1 FY22 Highlights Revenue Volume Revenue up 32% YoY but down 8% from H1FY20#. Exports down 21% YoY and contributed 37% to revenues versus 55% in H1FY21. INR 1,759 crore 51,092 MT Higher Value products (HEC + Copper Conductor + OPGW + CTC) Up 32% YoY Down 22% YoY contribution up to 5
Slide 9: Speciality Oils & Lubricants: Q2 FY22 Highlights
Speciality Oils & Lubricants: Q2 FY22 Highlights Revenue Volume Revenue up 49% YoY and 57% from pre-COVID level (Q2FY20) with INR 895 crore 1,13,981 KL stable volumes. Exports contributed 46% to revenues versus 41% in Q2FY21. Up 49% YoY 1,13,897 (Q2FY21) Hamriyah plant’s capacity utilisation up
Slide 10: Speciality Oils & Lubricants: H1 FY22 Highlights
Speciality Oils & Lubricants: H1 FY22 Highlights Revenue Volume INR 1,727 crore 2,28,459 KL Up 81% YoY Up 30% YoY Revenue up 81% YoY and 45% from pre-COVID level (Q2FY20). Exports contributed 47% to revenues versus 44% in H1FY21. EBITDA EBITDA per KL Hamriyah plant’s capacity utilisation up at 1
Slide 11: Lubricants: Q2 & H1 FY22 Highlights
Lubricants: Q2 & H1 FY22 Highlights Revenue Volume Revenues up 39% YoY and 59% from pre-COVID Q2 FY22 level (Q2FY20). INR 211 crore 16,822 KL o Industrial Oil volumes up 12% YoY. o Automotive volumes growth remained flat for the Up 39% YoY Up 5% YoY quarter versus Q2FY21. o OEM sales affected from
Slide 12: Cables: Q2 FY22 Highlights
Cables: Q2 FY22 Highlights Revenue EBITDA Revenue up 66% YoY on a lower base and 15% over Q2FY20# but volumes remain similar to pre-COVID levels. INR 425 crore INR 18 crore o Continued focus on international business resulted in Exports Up 66% YoY Up 62% YoY contributing 29% to revenues versus 12%
Slide 13: Cables: H1 FY22 Highlights
Cables: H1 FY22 Highlights Revenue EBITDA Revenue up 63% YoY albeit on a lower base and 8% over H1FY20#, but volumes stood lower than pre-COVID levels. INR 824 crore INR 44 crore o Exports revenues up 100% YoY with conscious effort to tap into Up 63% YoY Up 125% YoY overseas opportunities and cont
Slide 14: Company Overview
Company Overview APAR
Slide 15: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today 6,405 #1 3rd #1 INR Largest global aluminum & alloy Largest global manufacturer of Cables manufacturer for Cr FY21 Consolidate Revenue, conductors’ manufacturer renewables in India 7.3% FY17-FY21 CAGR Transformer oils Leveraging global network Leading the
Slide 16: Well-diversified across industries & segments
Well-diversified across industries & segments APAR today targets: Power Transmission & Distribution (T&D) and Renewable Energy sectors through Conductors, Cables and Transformer oils (T-oils). Railways through Copper Catenary Conductors, XLPE & Elastomeric cables & Harnesses. Defence through E
Slide 17: Extensive global presence driving exports
Extensive global presence driving exports Export revenues up 3.2% YoY, contributed 41.3% to FY21 Present in 125 countries with a focus on revenues. Southeast Asia, Middle East, Africa & South America. Hub and spoke manufacturing & distribution model for specialty oils - allows efficient delivery
Slide 18: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers Strategic focus on higher-value Strong leadership & competitive edge products (32.6% in FY21) 1.8 lakh MT p.a. capacity Adj. EBITDA* per MT at INR 17,197 in Q2 FY22 FY21 revenue of INR 2,908 crore, 6.6% FY17-FY21 INR 344 crore invested in FY15-FY2
Slide 19: Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally
Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally Strong leadership & competitive edge Strategic focus on higher-value products Leading domestic player in auto lubes. INR 208 crore invested in FY15-FY21 FY21 revenue of INR 2,364 crore, 8.6% FY17- Lubricants (Auto lubes & industr
Slide 20: 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 INR 265 crore invested in FY15-FY21 FY21 revenue of INR 1,270 crore, 10.1% FY17-FY21 CAGR. Green-field Khatalwad plant for E-beam Elastomer
Slide 21: Strong financial performance sustained over the years
Strong financial performance sustained over the years Consolidated Revenue Exports contribution at 41% in FY21 EBITDA & margin Exports Domestic 7,971 475 468 7,438 5,528 425 422 20% 460 412 4,956 18% 6,405 16% 5,823 410 3,736 3,751 14% 4,840 3,297 360 12% 4,093 266 10% 310 8% 1,544 260 8.8% 6% 2,443
Slide 22: Strong industry growth drivers
Strong industry growth drivers Economic Recovery Pullback in Automotive Industry Indian Railways accelerating Telecom Industry India’s GDP growth estimated at 9.5% for FY22 (RBI) Tractor sales expected to touch 100% Railways electrification Bharat Net: World’s Moody's upgrades India's rating out
Slide 23: Annexure
Annexure APAR
Slide 24: Q2 FY22: Consolidated Profit & Loss Statement
Q2 FY22: Consolidated Profit & Loss Statement Figures in INR crore Particulars Q2FY22 Q2FY21 % Chg YoY Q1FY22 % Chg QoQ H1FY22 H1FY21 % Chg YoY Gross sales 53% 25% 47% 2,255.3 1,475.7 1,803.1 4,058.4 2,756.6 Other Operating Income -34% 2% 18.0 -26% 6.7 10.1 6.6 13.3 Total Operating Income 52% 25% 47
Slide 25: Q2 FY22: Financials
Q2 FY22: Financials Key Ratios Q2FY22 Q2FY21 Q1FY22 H1FY22 H1FY21 EBITDA Margin 5.8% 8.2% 7.8% 6.7% 5.8% Net Margin 2.5% 3.6% 3.4% 2.9% 1.1% Total Expenditure/ Total Net Operating Income 94.7% 92.1% 92.9% 93.9% 94.5% Raw Material Cost/ Total Net Operating Income 78.3% 72.7% 75.4% 77.0% 76.3% Staff C
Slide 26: Q2 FY22: Consolidated Segment Analysis
Q2 FY22: Consolidated Segment Analysis Figures in INR crore Segment Q2FY22 Q2FY21 % Chg YoY Q1FY22 % Chg QoQ H1FY22 H1FY21 % Chg YoY Revenue Conductors 1,080.6 629.8 72% 679.5 59% 1,760.1 1,334.9 32% Transformer & Specialty Oils 888.1 600.6 48% 831.7 7% 1,719.8 952.2 81% Power & Telecom Cables 425.2
Slide 27: Consolidated Balance Sheet Statement as on Sep 30, 2021
Consolidated Balance Sheet Statement as on Sep 30, 2021 Figures in INR crore Sr.No Particulars As at 30.09.2021 As at 31.03.2021 Sr.No Particulars As at 30.09.2021 As at 31.03.2021 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity a) Property, Plant and Equipment 818.7 819.1 b) Right-o
Slide 28: Consolidated Cash Flow Statement for the half year ended Sep 30, 2021
Consolidated Cash Flow Statement for the half year ended Sep 30, 2021 Figures in INR crore Particulars H1FY22 H1FY21 Particulars H1FY22 H1FY21 Cash flow from operating activities Cash flow from investing activities Acquisition of property, plant and equipment -45.3 -14.7 Profit before tax 156.2 38.7
Slide 29: Shareholding Pattern
Shareholding Pattern As on September 30, 2021 Outstanding shares – 3,82,68,619 Others, 14.50% Shareholding Major Non-Promoter Shareholders (%) HDFC Trustee company 8.69 Corporate Bodies, 1.97% L & T Mutual Fund Trustee Ltd 4.21 Nippon Life India Trustee Ltd. 3.39 DII, 18.00% Promoter, Raiffeisen -Eu
Slide 30: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder APAR Industries Ltd Nitesh Kumar Seema Shukla Phone: +91 22 67800400 Phone: +91 98915 70250 Phone: +91 124 425 1443 Email: sr.kunder@apar.com nitesh.kumar@four-s.com seema@four-s.com Safe Harbor: This presentation may have