Apar Industries Limited · NSE:APARINDS
Apar Industries — Q4 FY2021 Earnings Presentation
30 slides from Apar Industries's earnings presentation, May 31, 2021
Slide 1: Investor Update cover letter to exchanges
f APAR Tomorrow's solutions today sEct3105t2021 31"t May, 2021 National Stock Exchange of lndia Ltd. BSE Ltd. "Exchange Plaza", Corporate Relationship Department, C-1, Block G, 27h Floot, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai - 400 051. Mumbai - 400
Slide 2: APAR Industries Ltd. Q4 FY21 Investor Update
APAR Industries Ltd. Q4 FY21 Investor Update Q4 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: FY21: Adj. PAT up 26.6% YoY despite prolonged COVID-19 Impact
1 FY21: Adj. PAT up 26.6% YoY despite prolonged COVID-19 Impact Revenue EBITDA PAT Adjusted PAT1 RoE Rs 6,405 crore Rs 422 crore Rs 161 crore Rs 171 crore 12.5% Down 13.9% YoY Down 9.7% YoY Up 18.8% YoY Up 26.6% YoY Up 106 bps YoY Margin at 6.6%, (6.3% in FY20) Margin at 2.5%, (1.8% in FY20) Margin
Slide 5: Q4 FY21: Resilient growth on the back of strong Oil's quarter
Q4 FY21: Resilient growth on the back of strong Oil’s quarter Revenue EBITDA PAT Rs 1,907 crore Rs 106 crore Rs 48 crore Up 6.4% YoY Up 2.8% YoY up 104.1% YoY Margin at 5.6%, down 19.6 bps YoY Margin at 2.5%, up 119.6 bps YoY • Domestic revenues up 12% YoY on the back of 42.5% YoY growth in Oils seg
Slide 6: Business Performance
Business Performance Q4 FY21 Investor Update 5
Slide 7: Conductors: FY21 highlights
Conductors: FY21 highlights • Domestic revenues down 37.0% YoY due to COVID-19 Revenue Volume pandemic resulting in national lockdown in initial months, delayed tendering and persistent low demand. Rs 2,908 crore 1,28,460 MT • Exports revenue up 0.4% YoY; share at 52.1% (40.6% in Down 19.2% YoY Down
Slide 8: Conductors: Q4 FY21 highlights
• Conductors: Q4 FY21 highlights • Revenue sustained with 1.7% YoY growth. EBITDA post adj* down 97.5% YoY as: • Steep increase in logistics costs, aluminium premium, Revenue Volume steel prices etc. for fixed orders. Global freight costs up 3-4 x due to scarcity of containers. Inflationary Rs 837 c
Slide 9: Speciality Oils & Lubricants: FY21 highlights
Speciality Oils & Lubricants: FY21 highlights Revenue Volume • Revenue up 2.3% YoY driven by 11.4% YoY growth in exports that was spread across industry sub-verticals. Rs 2,364 crore 3,99,214 KL • Exports contribution at 40.6% compared to 37.3% in FY20. Up 2.3% YoY Down 1.1% YoY • Domestic revenues
Slide 10: Speciality Oils & Lubricants: Q4 FY21 highlights
Speciality Oils & Lubricants: Q4 FY21 highlights Revenue Volume Domestic revenue up 42.5% YoY, Domestic revenue contribution at 65.0% versus 60.7% in Q4 FY20. Rs 719 crore 1,03,488 KL Exports revenue up 18.4% YoY, Exports revenue Up 33.1% YoY Up 6.8% YoY contribution at 35.0% versus 39.3% in Q4
Slide 11: Lubricants: 14.6% YoY growth in FY21 revenues
Lubricants: 14.6% YoY growth in FY21 revenues Revenue Volume • Industrial Oil volumes up 2.8% YoY. FY21 • Automotive volumes up 17.6% YoY driven by both Rs 610 crore 63,352 KL agricultural and retail segment. Versus Rs 532.4 Versus 55,839 KL in crore in FY20 FY20 Consolidated financials Q4 FY21 Reve
Slide 12: Cables: FY21 highlights
Cables: FY21 highlights Revenue EBITDA • Overall a difficult year right from beginning due to impact of COVID-19. Rs 1,270 crore Rs 60 crore • Exports contributed 20.0% to revenue in FY21, up from Down 20.7% YoY Down 66.5% YoY 17.2% in FY20. Margin at 4.8%, • Power cables continue to be highly compe
Slide 13: Cables: Q4 FY21 highlights
Cables: Q4 FY21 highlights Revenue EBITDA • Stable revenues supported by 7.1% YoY growth in domestic revenues. Rs 443 crore Rs 14 crore • Market environment remained competitive from lower Down 0.4% YoY Down 67.9% YoY demand in B2B and B2G segments. Margin at 3.2%, • Export revenues down 17.9% YoY,
Slide 14: Company Overview
Company Overview Q4 FY21 Investor Update 13
Slide 15: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 3 rd #1 Rs 6,405 Cr Largest global aluminum & Largest global Cables manufacturer for FY21 consolidated alloy conductors’ manufacturer manufacturer of renewables in India revenue, Transformer oils 7.3% FY17-FY21 CAGR 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 revenues. • Present in 125 countries with a focus on South East Asia, Middle East, Africa & South America. • Hub and spoke manufacturing & distribution model for specialty oils - allows efficient deliver
Slide 18: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers Strong leadership & competitive edge Strategic focus on higher-value products (32.6% in FY21) 1.8 lakh MT p.a. capacity Adj. EBITDA* per MT at Rs 7,926 in FY21 FY21 revenue of Rs 2,908 crore, 6.6% FY17-FY21 CAGR Rs 344 crore invested in FY15-FY21
Slide 19: Specialty Oils & Lubricants – 3rd largest global manufacturer of transformer oils
Specialty Oils & Lubricants – 3 largest global manufacturer of rd transformer oils Strong leadership & competitive edge Strategic focus on higher-value products Leading domestic player in auto lubes. Rs 208 crore invested in FY15-FY21 FY21 revenue of Rs 2,364 crore, 8.6% FY17-FY21CAGR. Lubricants (A
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 Rs 265 crore invested in FY15-FY21 FY21 revenue of Rs 1,270 crore, 10.1% FY17-FY21 CAGR. • Green-field Khatalwad plant for E-beam Elastomeric
Slide 21: Financial performance
Financial performance Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 41% in FY21 EBITDA & margin 7,971 475 468 Exports Domestic 500 20% 7,438 450 425 412 422 18% 6,405 5,528 400 16% 5,823 4,956 350 14% 4,840 3,736 3,751 300 12% 3,297 250 10% 2,443 2,555 2,6
Slide 22: Strong industry growth drivers
Strong industry growth drivers • Draft guidelines issued for the Rs 3.05 lakh crore reform- • Global shift to renewables: By 2050, 90% of total based result-linked scheme for discoms revival – electricity needs to be supplied by renewables (IRENA). Aggregate Technical & Commercial loss target of 12-
Slide 23: Annexures
Annexures Q4 FY21 Investor Update 22
Slide 24: Q4 FY21: Consolidated Profit & Loss Statement
Q4 FY21: Consolidated Profit & Loss Statement Particulars (Rs crore) Q4FY21 Q4FY20 % Chg YoY Q3FY21 % Chg QoQ FY21 FY20 % Chg YoY Gross sales 1,897.2 1,779.6 7% 1,705.7 11% 6,359.5 7,377.2 -14% Other Operating Income 2.3 12.4 -81% 8.2 -72% 28.5 48.2 -41% Total Operating Income 1,899.5 1,792.0 6% 1,7
Slide 25: Q4 FY21: Financials
Q4 FY21: Financials Key Ratios Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 EBITDA Margin 5.8% 6.0% 9.7% 6.9% 6.5% Net Margin 2.5% 1.3% 4.8% 2.5% 1.8% Total Expenditure/ Total Net Operating Income 94.7% 94.1% 90.6% 93.5% 93.7% Raw Material Cost/ Total Net Operating Income 76.3% 76.2% 72.1% 75.1% 76.9% Staff Co
Slide 26: Q4 FY21: Consolidated Segment Analysis
Q4 FY21: Consolidated Segment Analysis Segment (Rs Cr) Q4FY21 Q4FY20 % Chg YoY Q3FY21 % Chg QoQ FY21 FY20 % Chg YoY Revenue Conductors 2% 14% -19% 836.6 822.8 736.5 2,908.0 3,600.4 Transformer & Specialty Oils 33% 4% 2% 718.7 539.8 693.0 2,363.8 2,311.0 Power & Telecom Cables 0% 38% -21% 442.7 444.5
Slide 27: Consolidated Balance sheet Statement as on March 31, 2021
Consolidated Balance sheet Statement as on March 31, 2021 As at As at As at As at Sr.No Particulars Sr.No Particulars 31.03.2021 31.03.20 31.03.2021 31.03.20 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Plant and Equipment 819.1 830.2 (a) Equity Share capital 38.3 38
Slide 28: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows In Rs crore FY21 FY20 In Rs crore FY21 FY20 Cash flow from operating activities Cash flow from investing activities Acquisition of property, plant and equipment -55.6 -144.9 Profit before tax 208.3 169.4 Acquisition of intangibles -0.2 -0.4 Adjustments for Procee
Slide 29: Shareholding pattern
Shareholding pattern As on March 31, 2021 Outstanding shares – 3,82,68,619 Major Non-Promoter Shareholders Shareholding (%) HDFC Trustee company 9.25 Others, 13.70% L & T Mutual Fund Trustee Ltd 5.28 Corporate Bodies, 1.90% Nippon Life India Trustee Ltd. 3.47 Raiffeisen -Eurasien-Aktien-Kapitalanlag
Slide 30: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Nitesh Kumar Seema Shukla APAR industries Ltd Phone: +91 98915 70250 Phone: +91 124 425 1443 Phone: +91 22 67800400 nitesh.kumar@four-s.com seema@four-s.com Email: sr.kunder@APAR.com Safe Harbor: This presentation may have