Apar Industries Limited · NSE:APARINDS
Apar Industries — Q2 FY2021 Earnings Presentation
30 slides from Apar Industries's earnings presentation, Nov 5, 2020
Slide 1: Exchange intimation letter for Investor Update
ff APAR Tomo r row 's sol u t io ns tod ay SEC/051 1/2020 5th November, 2020 National Stock Exchange of India Ltd. BSE Ltd. "Exchange Plaza", Corporate Relationship Department, C-1 , Block G, 27'h Floor, Phiroze Jeejeebhoy Towers, Sandra- Kurla Complex, Dalal Street, Sandra (E), Fort, Mumbai -400 05
Slide 2: Q2 FY21 Investor Update
Apar Industries Ltd. Q2 FY21 Investor Update Q2 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: Q2 FY21: Exports buffer domestic headwinds
Q2 FY21: Exports buffer domestic headwinds Revenue EBITDA* PAT Rs 1,482 crore Rs 118 crore Rs 53 crore Down 19% YoY, Up 8% YoY Up 58% YoY Up 15% QoQ Margin at 8.0%, up 201 bps Margin at 3.6%, up 176 bps • Reduced volumes in Conductor and Cable businesses, but smart recovery in the Speciality Oils an
Slide 5: H1 FY21: Pandemic impacts performance
H1 FY21: Pandemic impacts performance Segmental-mix Revenue EBITDA* PAT Lubricant Cables 18% s (Auto & Industrial) Conductors Rs 2,775 crore Rs 153 crore Rs 30 crore 8% 48% Down 27% YoY Down 38% YoY Down 60% YoY Speciality Oils Margin at 5.5%, down 92 bps Margin at 1.1%, down 87 bps 26% Geographical
Slide 6: Business Performance
Business Performance Q2 FY21 Investor Update 5
Slide 7: Conductors: Q2 FY21 highlights
Conductors: Q2 FY21 highlights Revenue Volume • Domestic revenues declined 48% YoY due to COVID-19 related issues that impacted execution, delayed cash Rs 628 crore 33,797 MT flows and tenders. Down 30% YoY Down 22% YoY • Exports revenue down 3% YoY; share at 56% (40% in Q2 FY20). • HEC revenue shar
Slide 8: Conductors: H1 FY21 highlights
Conductors: H1 FY21 highlights Revenue Volume • Domestic revenues declined 51% YoY mainly due to COVID-19 impact. Rs 1,337 crore 65,658 MT • Exports revenue up 10% YoY; contributed 55% to Down 30% YoY Down 23% YoY revenue compared to 35% in H1 FY20. • HEC revenue contribution at 14% in H1 FY21, at a
Slide 9: Speciality Oils & Lubricants: Q2 FY21 highlights
Speciality Oils & Lubricants: Q2 FY21 highlights Revenue Volume • Revenue driven by 20% YoY growth in exports with strong global demand for all products. Rs 599 crore 1,13,897 MT • Highest Q2 sales volume in the last 10 years. Up 5% YoY Up 16% YoY • Exports contribution at 42% versus 36% in Q2 FY20.
Slide 10: Speciality Oils & Lubricants: H1 FY21 highlights
Speciality Oils & Lubricants: H1 FY21 highlights Revenue Volume Rs 950 crore 1,75,521 MT Down 20% YoY Down 14% YoY Revenue down mainly due to lockdown in domestic market in Q1FY21. Revenue growth in Q2FY21 on the back of strong global demand & strategic location of Hamriya Plant. EBITDA EBITDA per
Slide 11: Lubricants: 15% YoY growth in Q2FY21 revenues
Lubricants: 15% YoY growth in Q2FY21 revenues Q2 FY21 Revenue Volume • Industrial Oil volumes up by 4% YoY with a good overall distribution across customers. Rs 152 crore 16,047 MT • Automotive volumes were up 19% YoY led by focus on Up 15% YoY Up 15% YoY the agriculture segment. It also gained from
Slide 12: Cables: Q2 FY21 highlights
Cables: Q2 FY21 highlights • Recessionary trend in the market for all varieties of Cables, besides payment issues with customers especially the EPC and the solar segment. Revenue EBITDA • Exports contributed 12% to revenue in Q2 FY21, down from 18% in Q2 FY20. Rs 254 crore Rs 11 crore • Power cables
Slide 13: Cables: H1 FY21 highlights
Cables: H1 FY21 highlights Revenue EBITDA Rs 504 crore Rs 20 crore Down 34% YoY Down 79% YoY • Revenue decline due to COVID-19 disruption which Margin at 3.9%, resulted in subdued demand in domestic market. (12.3% in Q2 FY20) • Export revenues up 2% YoY, revenue share at 20% in H1 FY21, up from 13%
Slide 14: Indian power sector update
Indian power sector update • National Electricity Plan targets 479 GW of generation capacity by FY22 from current 373 GW: Includes 243 GW of thermal (231 GW in Sep 2020) and 175 GW of renewable capacity (89 GW in Sep 2020). • ICRA expects Rs 1.8 lakh crore investment over FY21-Y25 in the power trans
Slide 15: Company Overview
Company Overview Q2 FY21 Investor Update 14
Slide 16: Apar Industries at a glance
Apar Industries at a glance Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils Strong & Sustainable #1 domestic Cable manufacturer for renewables leadership A leading player in auto lubricants One of the most diverse & comprehensive portfolios Vas
Slide 17: Strong medium term industry growth drivers
Strong medium term industry growth drivers Rs 2.6 tn investment in T&D Generation transforming 100% Railways in India as per 13th plan towards renewables globally electrification by FY24 Economic recovery in FY22 Bharat Net – World’s largest High single to double digit – 5.4% growth forecast (WB) ru
Slide 18: Conductors
Conductors Strong leadership & competitive edge Strategic focus on higher-value products One of the largest global manufacturers Rs 367 crore invested in FY14-FY20 1.8 lakh MT p.a. capacity Adj. EBITDA per MT up 20% YoY in FY20. FY20 revenue of Rs 3,624 crore, 9% FY16-FY20 CAGR Higher-value products
Slide 19: Specialty Oils & Lubricants
Specialty Oils & Lubricants Strong leadership & competitive edge Strategic focus on higher-value products 4th largest global manufacturer of transformer oils, 45% market share Rs 208 crore invested in FY14-FY20 Leading domestic player in auto lubes. Lubricants (Auto lubes & industrial oils) contribu
Slide 20: Cables
Cables Strong leadership & competitive edge Strategic focus on higher-value products Largest domestic player in renewables – 60% share in wind sector Rs 295 crore invested in FY14-FY20 FY20 revenue of Rs 1,601 crore, 24% FY16-FY20 CAGR. • Green field Khatalwad plant for E-beam Elastomeric Cables, OF
Slide 21: Financial performance
Financial performance Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 34% in FY20 EBITDA* & margin 7,971 475 468 Exports Domestic 500 20% 7,465 450 425 412 18% 5,528 400 367 16% 5,823 4,910 5,082 350 14% 4,840 3,736 300 12% 3,336 3,297 250 10% 2,775 2,443 2,
Slide 22: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributed 45% to H1 FY21 revenues from 31% in H1 FY20. 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 Au
Slide 23: Annexures
Annexures Q2 FY21 Investor Update 22
Slide 24: Q2 FY21: Consolidated Profit & Loss Statement
Q2 FY21: Consolidated Profit & Loss Statement Particulars (Rs crore) Q2 FY21 Q2 FY20 % Chg YoY Q1 FY21 % Chg QoQ H1 FY21 H1 FY20 % Chg YoY Gross sales 1,468.2 1,812.7 -19% 1,284.1 14% 2,752.3 3,780.6 -27% Other Operating Income 12.5 16.3 -24% 8.9 40% 21.4 30.0 -29% Total Operating Income 1,480.7 1,8
Slide 25: Q2 FY21: Financials
Q2 FY21: Financials Key Ratios Key Ratios (%) Q2 FY21 Q2 FY20 Q1 FY21 H1 FY21 H1 FY20 EBITDA Margin 8.2% 6.1% 3.0% 5.8% 6.6% Net Margin 3.6% 1.9% -1.8% 1.1% 2.0% Total Expenditure/ Total Net Operating 92.0% 94.0% 97.1% 94.3% 93.5% Income Raw Material Cost/ Total Net Operating 72.9% 77.8% 80.3% 76.3%
Slide 26: Q2 FY21: Consolidated Segment Analysis
Q2 FY21: Consolidated Segment Analysis % Chg Segment (Rs crore) Q2 FY21 Q2 FY20 % Chg YoY Q1 FY21 H1 FY21 H1 FY20 % Chg YoY QoQ Revenue Conductors 628.4 895.9 -30% 709.1 -11% 1,337.5 1,917.6 -30% Transformer & Specialty Oils 598.6 571.2 5% 351.6 70% 950.2 1,190.6 -20% Power & Telecom Cables 254.1 36
Slide 27: Consolidated Balance sheet Statement as on September 30, 2020
Consolidated Balance sheet Statement as on September 30, 2020 Figures in Rs crore As at As at As at As at Sr.No Particulars Sr.No Particulars 30.09.2020 31.03.2020 30.09.2020 31.03.2020 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Plant and Equipment 827.0 830.2 (a)
Slide 28: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows For the half year ended For the half year ended In Rs crore Sep 30, 2020 Sep 30, 2019 Cash flow from operating activities Profit before tax 38.7 86.6 Adjustments for Depreciation on non current assets 41.7 35.9 Amortisation of Right of use assets 3.8 3.8 Amortisa
Slide 29: Shareholding pattern
Shareholding pattern As on September 30, 2020 Outstanding shares – 3,82,68,619 Others, 11.99% Major Non-Promoter Shareholders Shareholding (%) Corporate Bodies, HDFC Trustee company 9.25 1.21% L & T Mutual Fund Trustee Ltd 5.56 Reliance Capital 5.00 DII, 21.77% Goldman Sachs 2.28 Promoter, Raiffeise
Slide 30: 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