Apar Industries Limited · NSE:APARINDS

Apar Industries — Q3 FY20 Earnings Presentation

28 slides from Apar Industries's earnings presentation, Jan 23, 2020

  1. Slide 1: Exchange filing cover letter for Investor Update

    18 T.T.C., MIDC INDUSTRIAL AREA, THANE 8ELAPUR ROAD, OPP. RA8ALE RAJLWAY STATION, RA8ALE - 400 701. APAR INDUSTRIES LTD. NAVl MUMBAJ, INDIA. T : (+91) (22) 6111 0444 F : (+91) (22) 2760 2692 E : apar.rabole@apar.com uri : www.apar.com SEC/2301/2020 23rd January, 2020 National Stock Exchange of India

  2. Slide 2: Powering Ahead! Q3 FY20 Earnings Presentation

    Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q3 FY20 Earnings Presentation Corporate Presentation Apar Industries Limited  Earnings Presentation | Q3 FY20 1

  3. 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

  4. Slide 4: Q3 FY20: PAT up 6% YoY even as revenue headwinds continue

    Q3 FY20: PAT up 6% YoY even as revenue headwinds continue Domestic markets continue to face credit challenges, prudent order-booking & higher-value HEC sales drive profits up Conductors - Revenue at Rs 868 crore, adj. EBITDA* per MT up 50%  Sales volume at 36,410 MT, down 23% YoY.  Higher value pr

  5. Slide 5: Indian Power Sector update: Second generation reforms in works

    Indian Power Sector update: Second generation reforms in works Government proposes grant of Rs 1.1 lakh crore for state discoms: New planned bailout scheme, previously proposed to be named as Atal Distribution System Improvement Yojana (ADITYA), is likely to come up in the upcoming budget as UDAY is

  6. Slide 6: Table of Contents: Financial Performance

    Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited  Earnings Presentation | Q3 FY20 5

  7. Slide 7: Q3 FY20: EBITDA up 3%, PAT up 6% despite challenging market

    Q3 FY20: EBITDA up 3%, PAT up 6% despite challenging market Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q3 FY20 1,837 119 (6.5%) 37 (2.0%) 13% 3% 6% Q3 FY19 2,120 115 (5.4%) 35 (1.6%) Revenue down 13% YoY due to lower domestic demand with contin

  8. Slide 8: 9M FY20: Revenues up 3% YoY, PAT up 21% YoY

    9M FY20: Revenues up 3% YoY, PAT up 21% YoY Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) 9M FY20 5,650 364 (6.4%) 112 (2.0%) 3% 8% 21% 9M FY19 5,504 337 (6.1%) 92 (1.7%) Revenue up 3% YoY, mainly driven by Conductors business. EBITDA up 8% YoY to

  9. Slide 9: Table of Contents: Business Performance

    Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited  Earnings Presentation | Q3 FY20 8

  10. Slide 10: Conductors Q3 FY20: Adj. EBITDA per MT up 50% driven by higher-value HEC

    Conductors Q3 FY20: Adj. EBITDA per MT up 50% driven by higher-value HEC 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) Q3 FY20 868 13,189 45 (5.2%) 12,409 36,410 48 (5.5%) 17% 31% 69% 16% 5

  11. Slide 11: Conductors 9M FY20: Adj. EBITDA per MT up 5% YoY

    Conductors 9M FY20: Adj. EBITDA per MT up 5% 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) 9M FY20 2,786 11,356 130 (4.7%) 10,665 1,21,660 138 (5.0%) 8% 6% 4% 6% 5% 1% 9M FY19 2,586 130

  12. Slide 12: Oils Q3 FY20: Revenue headwinds impact performance

    Oils Q3 FY20: Revenue headwinds 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) Q3 FY20 587 34 (5.7%) 3,293 31 (5.4%) 3,082 1,02,194 19% 24% 14% 33% 24% 12% Q3 FY19 727 45 (6.1%)

  13. Slide 13: Oils 9M FY20: Adj. EBITDA per KL up 15% YoY

    Oils 9M FY20: Adj. EBITDA per KL up 15% 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) 9M FY20 1,778 109 (6.1%) 3,565 101 (5.7%) 3,293 3,06,705 8% 12% 14% 13% 15% 2% 9M FY19 1,934 98 (5.1%) 3,1

  14. Slide 14: Cables Q3 FY20: Sustained EBITDA even with lower revenues

    Cables Q3 FY20: Sustained EBITDA even with lower revenues Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q3 FY20 391 42 (10.9%) 42 (10.6%) 7% 4% 1% Q3 FY19 420 41 (9.7%) 41 (9.8%) * After adjusting open period forex Revenue down 7% YoY impacted by slowdown

  15. Slide 15: Cables 9M FY20: EBITDA (Post adj*) up 12% YoY

    Cables 9M FY20: EBITDA (Post adj*) up 12% YoY Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) 9M FY20 1,154 136 (11.8%) 135 (11.7%) 2% 11% 12% 9M FY19 1,176 123 (10.4%) 120 (10.2%) * After adjusting open period forex Revenue down marginally at Rs 1,154 crore

  16. Slide 16: Table of Contents: Company Overview

    Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited  Earnings Presentation | Q3 FY20 15

  17. Slide 17: Apar Industries at a glance

    Apar Industries at a glance Strong & Sustainable leadership Well-positioned to capture broad-based demand.. Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils #1 domestic Cable manufacturer for renewables A leading player in auto lubricants. One o

  18. Slide 18: 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 • Largest manufacturer in India. • P

  19. Slide 19: 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

  20. Slide 20: 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.

  21. Slide 21: 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 475 7,971 5,528 500 450 425 412 20% 18% 400 367 36

  22. Slide 22: Huge global presence driving exports

    Huge global presence driving exports Presence in 100 countries, Exports contributing 31% to FY19 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

  23. Slide 23: Table of Contents: Annexure

    Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited  Earnings Presentation | Q3 FY20 22

  24. Slide 24: Q3 FY20: Consolidated Profit & Loss Statement

    Q3 FY20: Consolidated Profit & Loss Statement Particulars (Rs crore) Q3 FY20 Q3 FY19 % Chg YoY Q2 FY20 % Chg QoQ 9M FY20 9M FY19 % Chg YoY Total Operating Income 1,836.6 2,119.1 -13% 1,829.1 0% 5,647.3 5,499.3 3% Total Expenditure 1,713.5 2,004.7 -15% 1,719.6 0% 5,277.6 5,166.9 2% Cost of Raw Materi

  25. Slide 25: Q3 FY20 Financials: Key Ratios

    Q3 FY20 Financials Key Ratios Key Ratios (%) Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 EBITDA Margin 6.8% 5.5% 6.1% 6.7% 6.2% Net Margin 2.0% 1.6% 1.9% 2.0% 1.7% Total Expenditure/ Total Net Operating 93.3% 94.6% 94.0% 93.4% 94.0% Income Raw Material Cost/ Total Net Operating 75.9% 80.1% 77.8% 77.3% 7

  26. Slide 26: Q3 FY20: Consolidated Segment Analysis

    Q3 FY20: Consolidated Segment Analysis Segment (Rs Cr) Q3 FY20 Q3 FY19 % Chg YoY Q2 FY20 % Chg QoQ 9M FY20 9M FY19 % Chg YoY Revenue Conductors 868.3 1,052.2 -17% 895.9 -3% 2,786.0 2,585.9 8% Transformer & Specialty Oils 587.4 727.3 -19% 571.2 3% 1,778.0 1,933.6 -8% Power & Telecom Cables 391.3 419.

  27. Slide 27: Shareholding pattern

    Shareholding pattern As on December 31, 2019 Outstanding shares – 3,82,68,619 Others, 10.29% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 9.25 Bodies, 1.28% L & T Mutual Fund Trustee Ltd 6.45 DII, 23.14% Reliance Capital 6.04 Goldman Sachs 2.62 Promoter, 59.38% Rai

  28. Slide 28: 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

Apar Industries — Q3 FY20 Earnings Presentation on 6ix