Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (July 2022)
48 slides from Apar Industries's investor presentation, July 2022
Slide 1: Exchange filing letter for corporate presentation
HAPAR Tomorrow's solutions today SEC/1208/2022 August 12, 2022 National Stock Exchange of India Ltd. BSE Ltd. "Exchange Plaza", Corporate Relationship Department, C-1, Block G, 27th Floor, Phiroze Jeejeebhoy Towers, Bandra- Kuria Complex, Dalal Street, Bandra (E), Fort, Mumbai — 400 051. Mumbai - 40
Slide 2: Corporate Presentation July 2022
CORPORATE PRESENTATION July 2022
Slide 3: Table Of Contents
Table Of Contents 04 COMPANY OVERVIEW 31 FINANCIAL OVERVIEW 37 ANNEXURES 46 SHAREHOLDING PATTERN
Slide 4: 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 se
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: About APAR
About APAR o We are a technology-driven, customer-focused company that delivers – innovative, cost-effective, quality products & services o We believe that with an innovation-first mindset, we can find impactful solutions for our customers o Trusted by major Power Generation, Transmission, Distribut
Slide 7: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 3rd #1 9,346 Cr Largest global aluminium & Largest global manufacturer of Cables manufacturer for FY22 Consolidated Revenue, alloy conductors’ manufacturer Transformer oils renewables in India 5 year CAGR at 14.1% Leveraging global network Leading the i
Slide 8: Our Catalyst for Innovation
Our Catalyst for Innovation To design and manufacture building blocks for energy infrastructure, transportation and telecommunication sectors that contribute MISSION meaningfully to make this world more energy efficient, environmentally sustainable and a safer place To be a global leader in the ener
Slide 9: Our 60 years of legacy (1/2)
Our 60 years of legacy (1/2) Company incorporated Greenfield expansion to meet Diversification into State-of-the-art R&D unit with conductor business growing oils demand auto lubes segment setup at Rabale (setup Rabale oils plant) (license agreement with ENI Italy) (global presence in 100+ countries
Slide 10: Our 60 years of legacy (2/2)
Our 60 years of legacy (2/2) Greenfield expansion Commissioning of Sharjah plant, New APAR logo! Geared up to grow the LDC to meet growing conductors demand Signed agreement with Hindalco (Together we fought through covid-19) business with ambitious plans (conductor plant setup at Athola) for molten
Slide 11: Well-diversified across industries & segments
Well-diversified across industries & segments Conductors Specialty Oils o One of the largest global manufacturers o 540 thousand KL capacity (including lubricants) o Pioneered turnkey solutions for reconductoring with HEC, live line o 3rd largest global manufacturer of T-oils installation with OPGW
Slide 12: APAR Group – House of Brands
APAR Group – House of Brands 11 Corporate Presentation – July 2022
Slide 13: APAR's State-of-the-Art Facilities strategically located
APAR’s State-of-the-Art Facilities strategically located Manufactures: Cables Gujarat Umbergaon Manufactures: Conductors Jharsuguda Odisha Manufactures: Wires & Cables Maharashtra Manufactures: Khatalwada Conductors Lapanga Manufactures: Polymers Manufactures: Umbergaon Conductors Rabale Silvassa Ma
Slide 14: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers ACCC OPGW Copper Railway conductors CTC Turnkey Solutions Strong leadership & competitive edge Strategic focus on higher-value products (49% in FY22 up from 33% in FY21) FY22 revenue of INR 4,200 crore, 5 years CAGR at 13.3% Adj. EBITDA* per MT at
Slide 15: Growth Drivers – Conductors
Growth Drivers – Conductors o Completed 100+ turnkey solution projects o Delivered 1,07,000 MT of Conductors o Delivered 22,000 + km of OPGW Cables o Higher value-added products contribution - 49% o New order inflow - 123% o Green initiatives to reduce carbon intensity in operations o Highest record
Slide 16: Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally
Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally Transformer oil White oils Industrial & process oils Industrial & auto lubricants Petroleum jelly POWEROIL TO NE premium Strong leadership & competitive edge Leading domestic player in auto lubes. INR 229 crore invested in FY16-F
Slide 17: Growth Drivers – Specialty Oils & Lubricants
Growth Drivers – Specialty Oils & Lubricants o 400+ Grade Oils o Exported ~ 2,00,000 KL of speciality oils during the year o Transformer oils volumes up 10% vs. FY21 o White Oil sales up 16% vs. FY21 o Serving 140+ Countries o Launched best-in-class 99% biodegradable natural ester transformer oil 16
Slide 18: Cables - Largest domestic player in renewables
Cables - Largest domestic player in renewables Power cables House wire & cable Elastomeric cables E-beam irradiated cables OFC Speciality hybrid cables Strong leadership & competitive edge Strategic focus on higher-value products 60% share in domestic wind sector INR 309 crore invested in FY16-FY22
Slide 19: Growth Drivers – Cables
Growth Drivers – Cables o 500+ range of cables o 18 UL approvals for US Market o Major presence in Africa, East Africa, Australia & Europe, o Increased demands from Railways, defence and non-conventional energy o Reached 2,000 crore in cables business in FY 2022 o 572 crore of export business o A ma
Slide 20: Sonu Sood as the face of APAR Industries
Sonu Sood as the face of APAR Industries SONU SOOD ENDORSING OUR LIGHT DUTY CABLES RANGE o House wire o CAT 6 LAN cable o House wiring o House wire o Round Multicore o Telephone cable o Round multicore o HFFR o Round Multicore o 3 core flat cable o CCTV o Core flat cable o Round Multicore o EBXL HFF
Slide 21: Focus on Revenue Growth and Increased Efficiency
Focus on Revenue Growth and Increased Efficiency Enhancing Operational Efficiency o Continue to seek to improve efficiencies, streamline capacities and asset utilization and manage capital expenditure for each of the production facilities o Implemented various initiatives to lower costs, such as pur
Slide 22: Unique capabilities
Unique capabilities Diversified business across product portfolio, market segments, Strong financial performance sustained over the years 01 customer base and geographies 04 Well positioned to capture industry trends related growth Robust in-house technology, innovation and R&D capabilities 02 both
Slide 23: Strong financial performance sustained over the years
Strong financial performance sustained over the years Consolidated Revenue Exports contribution at 38% in FY22 EBITDA 9,346 5,774 574 6,00 0 5,528 7,971 4,956 560 7,438 5,00 0 510 475 468 3,736 3,751 3,550 425 412 422 6,405 4,0 00 3,297 460 5,823 2,637 410 4,840 2,443 2,555 2,087 3,000 360 2,00 0 1,
Slide 24: Key Financial Ratios
Key Financial Ratios Debt/ Equity Ratio (x) Net Fixed Asset Turnover Ratio (x) 0.19 0.2 0.17 0.17 12 10.76 10.2 0.18 0.15 9.13 9.17 0.16 0.14 10 8.48 0.14 0.11 8 6.92 0.12 0.1 6 0.08 4 0.06 0.04 2 0.02 0 0 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Interest Coverage Ratio (x) ROE (%
Slide 25: Extensive global presence driving exports
Extensive global presence driving exports Export revenues up 34.7% YoY, contributed 38.1% to FY22 revenues. o Present in 140+ countries with a focus on Southeast Asia, Middle East, o Hub and spoke manufacturing & distribution model for specialty oils, allows Africa & South America efficient delivery
Slide 26: Industries we cater to
Industries we cater to 03 Renewable Railways Energy 04 Transformers 05 Industrial 02 Telecommunication & Data Communication Motors & 01 Generators 06 Power Transmission & 08 Distribution Wires & Cables 07 25 Corporate Presentation – July 2022
Slide 27: Significant change in customer mix with focus on premiumisation
Significant change in customer mix with focus on premiumisation Particulars % of Total* Exports 38.2% Industries/Corporate 21.3% Specific industry groups 11.4% OEM's 6.4% EPC - Transmission companies 6.0% Utilities - Transmission companies 5.7% Renewables 4.1% Utilities - Electricity Distribution Bo
Slide 28: Key growth drivers
Key growth drivers Global Infrastructure Spends 01 Electrification • Rise in Power spending • New transmission and distribution systems globally. China Plus One 02 Risk diversification with increased manufacturing capabilities • New market access Carbon Neutrality 03 Adoption of diverse renewable en
Slide 29: Strategic outlook
Strategic outlook Product diversification with focus on premium offerings 1 Renewable energy power infrastructure – significant increase in products & capacities for solar, wind and power telecom 2 convergence. Exploring new markets with export-led focus B2B, 3 wider distribution network B2C 4 Impro
Slide 30: Making this world a better place - ESG
Making this world a better place - ESG As per CRISIL ESG Rating report: Ranked 3rd among industrial sector o At APAR, we have always believed in working in harmony with our environment and take conscious efforts to reduce the impact of our business on the society and environment. Accordingly, we hav
Slide 31: Doing good for society
Doing good for society Dr. N.D Desai Faculty of Located in Nadiad, Gujarat Medical Science & Research Anamrita Foundation Provides Free midday meals in 21 cities Free Multispeciality hospital with 800+ beds Serving 6,500+ schools, 10 lakhs kids daily 37,000+ patients have received free treatment Ser
Slide 32: Financial Overview
FINANCIAL OVERVIEW
Slide 33: Q1 FY23: Strongest revenue quarter, sequential momentum continues
Q1 FY23: Strongest revenue quarter, sequential momentum continues Revenue EBITDA PAT 71% 73% 97% 3,093 YOY 239 YOY 122 YOY Margin at 7.7% up 15 bps YoY Margin at 4% up 54 bps YoY o Q1 FY23 revenue up 71% YoY with growths coming in from all the three business divisions on the back of Segmental Mix |
Slide 34: Conductors: Q1 FY23 Highlights
Conductors: Q1 FY23 Highlights 128% YOY Revenue 64% YOY Volume 209% YOY EBITDA INR 1,548 crore 35,877 MT INR 85 crore INR 27 crore (Q1FY22) Margin at 5.5%; 4% (Q1FY22) EBITDA per MT EBITDA post adj* EBITDA* per MT 91% YOY 232% YOY 103% YOY INR 23,670 INR 79 crore INR 21,933 INR 12,364 (Q1FY22) INR 2
Slide 35: Speciality Oils & Lubricants: Q1 FY23 Highlights
Speciality Oils & Lubricants : Q1 FY23 Highlights 28% YOY Revenue 0.8% YOY Volume 32% YOY EBITDA INR 1,068 crore 1,15,359 Kl INR 118 crore INR 89 crore (Q1FY22) Margin at 11.1%; 10.8% (Q1FY22) EBITDA per KL EBITDA post adj* EBITDA* per KL 31% YOY 32% YOY 31% YOY INR 10,238 INR 112 crore INR 9,712 IN
Slide 36: Lubricants: Q1 FY23 Highlights
Lubricants : Q1 FY23 Highlights 36% YOY Revenue 26% YOY Volume INR 217 crore 17,618 Kl o Revenue up 36% YoY driven by strong growth of industrial and automotive volumes o Industrial volume up 31% YoY , Automotive volume up 24% YoY across the board due to lower base last year (COVID disruptions), how
Slide 37: Cables: Q1 FY23 Highlights
Cables : Q1 FY23 Highlights Revenue EBITDA EBITDA post adj* 60% YOY 98% YOY 95% YOY INR 638 crore INR 52 crore INR 49 crore INR 26 crore (Q1FY22) INR 25 crore (Q1FY22) Margin at 8.1%; 6.5% (Q1FY22) Margin at 7.6%; 6.2% (Q1FY22) o Revenue up 60% YoY with strong growth across all sub-segments except O
Slide 38: Annexures
ANNEXURES
Slide 39: FY 2022: Consolidated Profit & Loss Statement
FY 2022: Consolidated Profit & Loss Statement Particulars FY22 FY21 % Chg YoY Gross sales 9,290.6 6,359.5 46% Other Operating Income 29.4 28.5 3% Total Operating Income 9,320.1 6,388.0 46% Total Expenditure 8,778.1 5,982.7 47% Cost of Raw Materials 7,207.8 4,800.1 50% Employees Cost 173.9 160.4 8% O
Slide 40: FY 2022: Consolidated Segment Analysis
FY 2022: Consolidated Segment Analysis Segment 2 FY22 FY21 % Chg YoY Revenue Conductors 4,203.9 2,908.0 44.6% Transformer & Specialty Oils 3560.4 2,363.8 50.6% Power & Telecom Cables 1993.7 1,269.5 57.0% Others/Unallocated 56.8 42.9 32.1% Total 9814.7 6584.2 49.1% Less: Inter - Segment Revenue 494.8
Slide 41: FY 2022: Consolidated Segment Analysis
FY 2022: Consolidated Segment Analysis Segment FY22 FY21 % Chg YoY Segment Results before Interest and Tax Conductors 162.8 68.0 139.4% Transformer & Specialty Oils 268.4 266.3 0.1% Power and Telecom Cables 79.8 32.8 143.3% Others/Unallocated 3.7 3.5 5.7% Total 514.6 370.6 38.9% Less : Finance costs
Slide 42: FY22: Financials
FY22: Financials Key Ratios FY22 FY21 EBITDA Margin 6.1% 6.6% Net Margin 2.8% 2.5% Total Expenditure/ Total Net Operating Income 94.1% 93.4% Raw Material Cost/ Total Net Operating Income 77.3% 75.1% Staff Cost/ Total Net Operating Income 1.8% 2.5% Other Expenditure/ Total Net Operating Income 14.9%
Slide 43: Q1 FY23: Consolidated Profit & Loss Statement
Q1 FY23: Consolidated Profit & Loss Statement Particulars Q1FY23 Q1FY22 % Chg YoY Q4FY22 % Chg QoQ Gross sales 3,083.4 1,803.1 71.0% 3,003.9 2.6% Other Operating Income 9.8 6.6 48.5% 8.6 14.0% Total Operating Income 3,093.2 1,809.6 70.9% 3,012.5 2.7% Total Expenditure 2,855.9 1,682.9 69.7% 2,838.9 0
Slide 44: Q1 FY23: Consolidated Segment Analysis
Q1 FY23: Consolidated Segment Analysis Segment 2 Q1FY23 Q1FY22 % Chg YoY Q4FY22 % Chg QoQ Revenue Conductors 1,548.2 679.5 127.8% 1,503.4 3.0% Transformer & Specialty Oils 1,068.0 831.7 28.4% 928.2 15.1% Power & Telecom Cables 637.8 399.8 59.5% 682.7 -6.6% Others/Unallocated 23.5 10.6 121.7% 15.8 48
Slide 45: Q1 FY23: Consolidated Segment Analysis
Q1 FY23: Consolidated Segment Analysis Segment Q1FY23 Q1FY22 % Chg YoY Q4FY22 % Chg QoQ Segment Results before Interest and Tax Conductors 77.4 19.0 307.4% 57.3 35.1% Transformer & Specialty Oils 112.4 85.6 31.3% 64.8 73.5% Power and Telecom Cables 44.4 18.7 137.4% 42.4 4.7% Others/Unallocated 0.7 0
Slide 46: Q1 FY23: Financials
Q1 FY23: Financials Key Ratios Q1FY23 Q1FY22 Q4FY22 EBITDA Margin 7.8% 7.8% 6.1% Net Margin 4.0% 3.4% 2.7% Total Expenditure/ Total Net Operating Income 92.3% 92.9% 94.2% Raw Material Cost/ Total Net Operating Income 75.6% 75.4% 77.8% Staff Cost/ Total Net Operating Income 1.6% 2.4% 1.5% Other Expen
Slide 47: Market performance and shareholding structure
Market performance and shareholding structure 210 APAR has been consistently outperforming market 190 75% 170 150 130 110 14% 90 1% Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 APAR BSE Capital Goods BSE Sensex Chart has been rebased to 100 As on June 30, 2022
Slide 48: Thank You
Mr. Sanjaya Kunder Mr. Nihar Mehta / Mr. Mohit Joshi Contact No : +91 22 67800400 Contact No : +91 99202 52534 / +91 99302 06777 E-mail – sr.kunder@apar.com E-mail – nihar@s-ancial.com/ mohit@s-ancial.com Add: APAR house, Bldg no. 4 & 5, Corporate #215, Shiv Shakti Industrial Estate, 2Nd Floor, Park