Apar Industries Limited · NSE:APARINDS
Apar Industries — Q1 FY20 Earnings Presentation
24 slides from Apar Industries's earnings presentation, Aug 9, 2019
Slide 1: Investor update cover letter to stock exchanges
REGD. OFFICE & MARKETING OFFICE : 301/306, PANORAMA COMPLEX. R. C. DUTT ROAD, VADODARA • 390007. INDIA APAR INDUSTRIES LTD. / T : (+91) (265) 2322798/6178700 F : (+91) (265) 2330309 E : opar.borodo@opar.com uri : www.opar.com SEC/0908/2019 9th August, 2019 National Stock Exchange of India Ltd. BSE L
Slide 2: Q1 FY20 Earnings Presentation
Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q1 FY20 Earnings Presentation Corporate Presentation Apar Industries Limited Earnings Presentation | Q1 FY20 1
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: Q1FY20: Growth across segments drives revenue and profits
Q1FY20: Growth across segments drives revenue and profits Conductors - Revenue up 61% YoY, EBITDA (post adj.*) up 30% YoY Sales volumes at 41,802 MT, up 29% YoY with higher execution. Higher value products - HEC revenue contribution at 13% and Revenue 1,984 copper conductors for railways at 27%.
Slide 5: Indian Power Sector: Second generation reforms to focus on reliability
Indian Power Sector: Second generation reforms to focus on reliability Re-elected Government working on new reforms for ‘24X7’ Power for All: Proposals include ‘power sector council’ to resolve centre- state issues, separation of the wire and electricity supply business, setting up of a pan-India po
Slide 6: Financial Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q1 FY20 5
Slide 7: Q1 FY20: Profitable growth, revenue up 32% YoY, PAT up 42% YoY
Q1 FY20: Profitable growth, revenue up 32% YoY, PAT up 42% YoY Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q1 FY20 1,984 137 (6.9%) 41 (2.1%) 32% 22% 42% Q1 FY19 1,499 112 (7.5%) 29 (1.9%) Revenue up 32% YoY driven by strong execution in all thr
Slide 8: Business Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q1 FY20 7
Slide 9: Conductors: Deliver strong 61% revenue growth
Conductors: Deliver strong 61% revenue growth 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) Q1 FY20 1,022 11,529 51 (5.0%) 12,137 41,802 48 (4.7%) 61% 29% 4% 20% 30% 1% Q1 FY19 635 46 (7.3%
Slide 10: Oils revenue up 8% YoY, EBITDA per KL (post adj*) up 26% YoY
Oils revenue up 8% YoY, EBITDA per KL (post adj*) up 26% YoY Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) Q1 FY20 619 42 (6.7%) 3,917 42(6.7%) 3,907 1,06,354 8% 17% 4% 42% 26% 13% Q1 FY19 576 36
Slide 11: Cables continue profitable growth, EBITDA margin crosses 13%
Cables continue profitable growth, EBITDA margin crosses 13% Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q1 FY20 394 52 (13.1%) 52 (13.2%) 24% 60% 72% Q1 FY19 318 32 (10.1%) 30 (9.5%) * After adjusting open period forex Revenue up 24% driven by elastomer
Slide 12: Company Overview
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q1 FY20 11
Slide 13: Apar Industries at a glance
Apar Industries at a glance Strong & Sustainable leadership Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils Well-positioned to capture broad-based demand.. #1 domestic Cable manufacturer for renewables A leading player in auto lubricants. One o
Slide 14: Conductors: Focus on higher-value products - HEC, Copper conductors & CTC
Transformative growth ahead in all three businesses: Conductors: Focus on higher-value products - HEC, Copper conductors & CTC Strong leadership & competitive edge One of the largest global manufacturers – 1.8 lakh MT p.a. capacity, FY19 revenue of Rs 3,915 crore • Market share of 23%. • Pioneer in
Slide 15: Speciality Oils: Focus on auto & industrial oils, exports
Transformative growth ahead in all three businesses: Speciality Oils: Focus on auto & industrial oils, exports Strong leadership & competitive edge 4th largest global manufacturer of transformer oils, 45% market share. Leading domestic player in auto lubes. FY19 revenue of Rs 2,630 crore, 5.42 lakh
Slide 16: Cables: Higher-value products across diverse industries
Transformative growth ahead in all three businesses: Cables: Higher-value products across diverse industries Strong leadership & competitive edge Largest domestic manufacturer for renewables – 60% share in wind sector. FY19 revenue of Rs 1,684 crore. • Launched India’s most advanced E-beam facility.
Slide 17: Strong financial performance sustained over the years
Strong financial performance sustained over the years Increased share of new higher-value added products accelerates growth in all segments Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 31% EBITDA margin at 6.0% 475 7,971 5,528 500 450 425 412 20% 18% 400
Slide 18: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 31% to FY19 Revenue 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 o
Slide 19: Annexure
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q1 FY20 18
Slide 20: Q1 FY20: Consolidated Profit & Loss Statement
Q1 FY20: Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1 FY20 Q1 FY19 % Chg YoY Q4 FY19 % Chg QoQ FY19 Total Operating Income 1,981.6 1,495.6 32% 2,464.6 -20% 7,963.9 Total Expenditure 1,844.5 1,386.5 33% 2,329.2 -21% 7,496.1 Cost of Raw Materials 1,546.3 1,147.3 35% 1,986.5 -22% 6,336.0
Slide 21: Q1 FY20 Financials: Key Ratios and Capital Employed
Q1 FY20 Financials Key Ratios In %, Consolidated Q1 FY20 Q1 FY19 Q4 FY19 FY19 EBITDA Margin 7.1% 7.6% 5.7% 6.1% Net Margin 2.1% 1.9% 1.8% 1.7% Total Expenditure/ Total Net Operating Income 93.1% 92.7% 94.5% 94.1% Raw Material Cost/ Total Net Operating Income 78.0% 76.7% 80.6% 79.6% Staff Cost/ Total
Slide 22: Q1 FY20: Consolidated Segment Analysis
Q1 FY20: Consolidated Segment Analysis Segment (Rs Cr) Q1 FY20 Q1 FY19 % Chg YoY Q4 FY19 % Chg QoQ FY19 Revenue Conductors 1,021.7 635.5 61% 1,329.3 -23% 3,915.2 Transformer & Specialty Oils 619.4 576.3 7% 696.3 -11% 2,629.9 Power & Telecom Cables 393.9 318.9 24% 507.9 -22% 1,683.9 Others/Unallocate
Slide 23: Shareholding pattern
Shareholding pattern As on June 30, 2019 Outstanding shares – 3,82,68,619 Others, 10.03% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 8.99 Bodies, 1.72% L & T Mutual Fund Trustee Ltd 6.36 Reliance Capital 6.16 DII, 23.84% Goldman Sachs 2.64 Promoter, 58.55% Raiffei
Slide 24: 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