APAR Industries Limited · NSE:APARINDS
APAR Industries — Investor Presentation (November 2018)
40 slides from APAR Industries's investor presentation, Nov 17, 2018
Slide 1: Exchange filing cover letter
REGO. OFFICi l MARKETlNG OFFICE : 301/306, PANORAMA COMPLEX, R. C. DUTT ROAD, VADODARA • 390007. INDIA T : (+91) (265) 2323175/2323176 APAR INDUSTRIES LTD. (+91) (265) 2322798 F : (+91) (265) 2330309 E : apor.baroda@opar.com uri : www.apor.com SEC/1711/2018 17'h November, 2018 National Stock Exchang
Slide 2: Apar Industries Ltd. Corporate Presentation November 2018
Corporate Presentation Apar Industries Ltd. Corporate Presentation November 2018 1 AparApar Industries Limited Corporate IndustriesLimited CorporatePresentation Presentation
Slide 3: Company Overview
Company Overview Company Overview 2 Apar Industries Limited Corporate Presentation
Slide 4: Global leader in Conductors, Transformer Oils & domestic leader in Cables
Global leader in Conductors, Transformer Oils & domestic leader in Cables for renewables sector 3rd largest manufacturer of Conductors, 4th largest manufacturer of transformer oil in Market Leadership the world, the largest domestic cable manufacturer for the renewables sector and a leading player i
Slide 5: Strong presence across diverse businesses
Strong presence across diverse businesses Conductors Specialty Oils Cables Auto Lubes Since 1958 Since 1969 Since 2008 Since 2007 23% market share 45% market share Acquired Uniflex in Renewed focus in auto Total Capacity: Total Capacity: 2008. Grew sales from lubes with licensing 180,000MT. Shifted
Slide 6: And multiple growth drivers in place
And multiple growth drivers in place Power Sector High Focus on Transmission & Distribution (T&D) Govt thrust on Renewable Energy • Regulatory initiatives undertaken via schemes such as Saubhagya • India has a 175 GW clean energy (rural electrification), Ujwal Discom Assurance Yojana (reducing targe
Slide 7: Strategic investments to drive future growth
Strategic investments to drive future growth Strategic investments of Rs 660+ crore since FY13 for innovative/higher value added products. Conductors - Rs 267 crore • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16, Further shifted 50,000 MT to Jharsuguda Plant (Total - 80,0
Slide 8: Macro headwinds impact margins, to recover in H2FY19
Macro headwinds impact margins, to recover in H2FY19 Margins expected to improve in H2FY19 with stable base oil prices, catch up in formula based pricing in oils division, stable rupee and better product-mix overall. EBITDA* / Margin EBITDA PAT / Margin 9.8% 8.1% 8.9% 7.8% 7.4% 4.3% 3.6% 3.8% 3.0% 3
Slide 9: Segmental Performance
Segmental Performance Company Overview 8 Apar Industries Limited Corporate Presentation
Slide 10: Conductors: Largest manufacturer and exporter from India
Conductors: Largest manufacturer and exporter from India Rapid growth with improved demand scenario and investment in new products • Order book in Sep’18 at all-time high of Rs 2,696 crore, up 92% YoY. Volume (In ‘000 MT) • New order inflow of Rs 2,817 crore in H1FY19 versus Rs 893 crore in H1FY18.
Slide 11: Driving growth through key strategic initiatives
Driving growth through key strategic initiatives Developments for FY19 • Order book at Rs 2,696 crore as on Sep’18 • New business of Copper conductors for Railways received orders worth Rs 420 crore in H1FY19. • New orders for HEC business received in India and from Bangladesh. • Strong execution in
Slide 12: Specialty Oils: Continued leadership with a global footprint
Specialty Oils: Continued leadership with a global footprint • Revenue increased 27% YoY to reach Rs 2,162 crore from Rs Volume (In ‘000 KL) 1,699 crore in FY17 driven by record sales in transformer oil, white oil, industrial oil and automotive oils 4% CAGR 389 • FY18 volume at 3,88,513 KL, historic
Slide 13: Driving growth through capacity expansion and value added products
Driving growth through capacity expansion and value added products Developments for FY19 • Only Indian company to win new business to supply all the major HVDC projects with transformer oil in FY19 & FY20. • Order of 10,000+ KL won from ABB and GE • Margins to improve in H2FY19 with stable base oil
Slide 14: Auto Lubes: Strategic partnership & aggressive marketing driving growth
Auto Lubes: Strategic partnership & aggressive marketing driving growth • Manufacturing and license agreement with ENI S.P.A to Riding the high road with ENI manufacture ENI branded lubricants, positioned at upper end of the market. • Best in Class lubricants delivering great “Performance and Protec
Slide 15: Cables: continues ahead on a profitable growth path
Cables: continues ahead on a profitable growth path Revenue (In Rs Crore) • Revenue increased 29% YoY to reach Rs 1,116 crore in FY18 and 53% YoY in H1FY19 at Rs 756 crore. 18% CAGR 1,116 • All sub-segments delivered robust growth. 864 756 675 • Power cables see increased demand from expansion 573 5
Slide 16: New opportunities in the cables business
New opportunities in the cables business Developments for FY19 • Exploring new opportunities in MVCC, Auto Cables & Railway harnesses. • Started getting approval for E-beam Auto cables • Execution started for Railway harness business • Higher execution with added capacity at both HT & LT XLPE segmen
Slide 17: Power Sector Overview
Power Sector Overview Company Overview 16 Apar Industries Limited Corporate Presentation
Slide 18: Power sector on a turnaround post recent govt initiatives
Power sector on a turnaround post recent govt initiatives Power sector expected to receive investment of about $1 trillion by 2030 • India’s power demand is expected to grow at 6.5-6.8% CAGR in FY19-23 versus 3.8% CAGR in last five years, driven by high latent demand, rapid Installed capacity nears
Slide 19: UDAY- biggest policy initiative towards Ujwal Bharat
UDAY- biggest policy initiative towards Ujwal Bharat • Debt take over by the state resulting in reduction in interest cost • Lower cost of power Highlights • Operational efficiency • Enabling quarterly Tariff Increase • Reduction of AT&C loss to 15% in 2018-19 from 32% in 2013-14 Expected • Reductio
Slide 20: Govt's focus on transmission and distribution to drive growth
Govt’s focus on transmission and distribution to drive growth End of End of 12th As on End of System Type End of 10th plan 11th plan plan(Target) Sep'18 13th plan AC transmission Lines(In C Kms) 1,92,535 2,48,049 3,48,049 3,85,346 4,50,700 HVDC (In C Kms) 5,872 9,432 16,872 15,556 19,815 Total (In C
Slide 21: High voltage conductors & transformers to boost demand
High voltage conductors & transformers to boost demand Planned improvements in transmission sector Expected transmission lines by Govt 203,644 • High capacity 400kV multi-circuit/bundle 157,644 conductor lines. 106,819 • High Surge Impedance Loading (HSIL) Line. 56,731 • Increase in current High Tem
Slide 22: Financial Performance
Financial Performance Company Overview 21 Apar Industries Limited Corporate Presentation
Slide 23: FY18, H1FY19 deliver revenue growth in all segments
FY18, H1FY19 deliver revenue growth in all segments – Cables, Speciality Oils and Conductors Consolidated Revenue Revenue Geographic Break-up Exports grew at 7% CAGR (FY18) 3,297 3,336 3,297 3,736 3,062 5,823 5,122 5,082 4,840 2,087 4,632 1,825 Export, 1,570 1,744 1,544 3,384 36% Domesti c, 64% FY14
Slide 24: Margins transiently impacted due to macro headwinds in Oils division
Margins transiently impacted due to macro headwinds in Oils division, to improve in H2FY19. Figures in Rs crore, consolidated financials EBITDA / Margin PAT / Margin 550 6.5% 4.9% 7.2% 8.8% 7.1% 6.6% 240 2.4% 1.9% 2.4% 3.6% 2.5% 5.0% 10.0% 1.0% 1.7% 450 425 412 0.0% 176 190 0.0% 367 145 350 301 -10.
Slide 25: Strong Balance Sheet
Strong Balance Sheet Stringent credit control systems in place. . . FY14 FY15 FY16 FY17 FY18 H1FY19 Debtor Days 87 90 78 95 108 101 Inventory Days 80 67 55 75 76 83 Payables Days 108 112 100 134 160 151 Low debt /equity ratio. . . FY14 FY15 FY16 FY17 FY18 H1FY19 Current Ratio 1.2 1.2 1.2 1.2 1.2 1.2
Slide 26: Annexure
Annexure Company Overview 25 Apar Industries Limited Corporate Presentation
Slide 27: Key Milestones
Key Milestones Commissioning of Sharjah Plant; Signed agreement with Set up Hindalco for Conductors Conductors Plant in Conductor Jharsuguda s plant set up at Acquired Installed 2 E- Athola Entered into Uniflex Cables Global Beam Auto Lubes to diversify Presence in Accelerators segment via into Cabl
Slide 28: Wide and deep product mix
Wide and deep product mix Conductors Specialty Oils Cables Auto Lubes High Efficiency Transformer Oils For Power TACSR Auto Lubes insulation & cooling Power Cables Diesel Engine Oils for STACIR Rubber Processing Oil: Elastomeric and Flexible Commercial and GZTACSR For Tyre & Polymer Ind Cables Agric
Slide 29: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 36% to FY18 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 ov
Slide 30: Strategically located manufacturing units a big strength
Strategically located manufacturing units a big strength Proximity to major ports gives strategic advantage for exports Orissa Gujarat Maharashtra Manufacturing Units. Rabale (Maharashtra), Silvassa & Athola (Union Territory of Dadra and Nagar Haveli), Umbergaon & Khatalwad (Gujarat) Jharsuguda (Ori
Slide 31: Strong clientele with long lasting relationships
Strong clientele with long lasting relationships 30 AparApar Industries Limited Corporate IndustriesLimited CorporatePresentation Presentation
Slide 32: Annexure: Financials
Annexure: Financials Company Overview 31 Apar Industries Limited Corporate Presentation
Slide 33: Consolidated Profit & Loss Statement (Historical)
Consolidated Profit & Loss Statement (Historical) FY14 FY15 FY16 FY17 FY18 Revenue from operations (net) 4,632 5,122 5,551 5,289 5,939 Other income 4 2 10 16 11 TOTAL REVENUE (i) 4,636 5,124 5,562 5,305 5,950 EXPENSES: Cost of Raw Materials 3,675 4,085 3,905 3,573 4,495 Employee benefits expense 67
Slide 34: Consolidated Balance Sheet Statement (Historical)
Consolidated Balance Sheet Statement (Historical) (In Rs Cr) FY14 FY15 FY16 FY17 FY18 Liabilities Total Shareholder's Funds 696 730 854 1,036 1,108 Minority Interest 2 1 Non-current Liabilities: (a) Long-term borrowings 70 95 84 91 162 (b) Deferred tax liabilities (net) 23 27 31 46 35 (c) Other-long
Slide 35: Q2 FY19: Consolidated Profit & Loss Statement
Q2 FY19: Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2 FY19 Q2 FY18 % Chg YoY Q1 FY19 % Chg QoQ H1FY19 H1FY18 % Chg YoY Total Operating Income 1,884.7 1,247.8 51.0% 1,495.6 26.0% 3,380.2 2,672.3 26.5% Total Expenditure 1,775.8 1,159.1 53.2% 1,386.5 28.1% 3,162.2 2,488.2 27.1% Cost of R
Slide 36: Q2 FY19 Financials
Q2 FY19 Financials Key Ratios In %, Consolidated Q2 FY19 Q2 FY18 Q1 FY19 H1FY19 H1FY18 EBITDA Margin 6.0% 7.3% 7.6% 6.7% 7.4% Net Margin 1.5% 2.1% 1.9% 1.7% 2.6% Total Expenditure/ Total Net Operating 94.2% 92.9% 92.7% 93.6% 92.8% Income Raw Material Cost/ Total Net Operating 79.9% 76.3% 76.7% 78.5%
Slide 37: Q2 FY19: Consolidated Segment Analysis
Q2 FY19: Consolidated Segment Analysis Segment (Rs Cr) Q2 FY19 Q2 FY18 %YoY Q1 FY19 % QoQ H1FY19 H1FY18 % Chg YoY Revenue Conductors 898.2 494.8 81.5% 635.5 41.3% 1,533.7 1,082.6 41.7% Transformer & Specialty Oils 630.1 506.2 24.5% 576.3 9.3% 1,206.4 1,061.5 13.7% Power & Telecom Cables 437.3 242.1
Slide 38: Consolidated Balance sheet Statement as on 30th Sep, 2018
Consolidated Balance sheet Statement as on 30th Sep, 2018 Figures in Rs crore Consolidated Consolidated Sr.No Particulars As at 30 Sep, As at 31 Sr.No Particulars As at 30 Sep, As at 31 2018 March, 2018 2018 March, 2018 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Pl
Slide 39: Shareholding pattern
Shareholding pattern As on Sep 30, 2018 Outstanding shares – 3,82,68,619 Others, Bodies 10.25% Major Non-Promoter Shareholders Shareholding (%) Corporate, HDFC Trustee company 7.87 2.00% Reliance Capital 6.25 L & T Mutual Fund Trustee Ltd 3.81 DII, 23.31% Goldman Sachs 2.96 Promoter, 58.19% Raiffeis
Slide 40: 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
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