Apar Industries Limited · NSE:APARINDS
Apar Industries — Q1 FY2023 Earnings Presentation
31 slides from Apar Industries's earnings presentation, Jul 28, 2022
Slide 1: Investor Update cover letter to stock exchanges
RAPAR Tomorrow's solutions today SEC/2807/2022 July 28, 2022 National Stock Exchange of India Ltd. BSE Ltd. "Exchange Plaza", Corporate Relationship Department, C-1, Block G, 27th Floor, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai — 400 051. Mumbai - 400
Slide 2: Q1 FY2023 Investor Presentation
Q1 FY2023 INVESTOR PRESENTATION
Slide 3: Table Of Contents
Table Of Contents 04 FINANCIAL OVERVIEW 11 COMPANY OVERVIEW 24 ANNEXURES 29 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: Financial Overview
FINANCIAL OVERVIEW
Slide 6: 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 7: 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 103% YOY 21,933 232% YOY INR 23,670 INR 79 crore INR INR 12,364 (Q1FY22) INR 2
Slide 8: 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 9: 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 10: 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 11: 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/Corporates 21.3% Specific industry groups 11.4% OEM's 6.4% EPC - Transmission companies 6.0% Transmission companies 5.7% Renewables 4.1% Utilities - Electricity Distribution Boards 1.6% E
Slide 12: Company Overview
COMPANY OVERVIEW
Slide 13: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 3rd #1 9,346 Cr Largest global aluminum & alloy Largest global manufacturer of Cables manufacturer for FY22 Consolidate Revenue, conductors’ manufacturer Transformer oils renewables in India 14.1% FY17-FY22 CAGR Leveraging global network Leading the inn
Slide 14: Well-diversified across industries & segments
Well-diversified across industries & segments Conductors Specialty Oils o 180 thousand MT capacity o 540 thousand KL capacity (including lubricants) o One of the largest global manufacturers o 3rd largest global manufacturer of T-oils o Pioneered turnkey solutions for reconductoring with HEC, live l
Slide 15: 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) 1.8 lakh MT p.a. capacity Adj. EBITDA* per MT at INR 17,095 in FY22 FY22 reve
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 Strategic focus on higher-value products (49% in FY22 up from 33% in FY
Slide 17: 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 18: Sonu Sood as the face of APAR Industries
Sonu Sood as the face of APAR Industries OUR LIGHT DUTY CABLE 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 HFFR o 3 core flat cable
Slide 19: 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 20: 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 21: 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 22: 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 23: Key growth drivers
Key growth drivers Global Infrastructure Spends 01 Electrification • Rise in Power spending • Considerable investment dedicated to infrastructure China Plus One 02 Risk diversification with increased manufacturing capabilities • New market access Carbon Neutrality 03 Adoption of diverse renewable en
Slide 24: Strategic outlook
Strategic outlook Product diversification with focus on premium offerings 1 Innovation and digitisation 2 3 Expanding capacities 4 Improvement in supply chain and production process 5 Exploring new markets with export led focus, with wider distribution network 23 Q1 FY23 INVESTOR UPDATE
Slide 25: Annexures
ANNEXURES
Slide 26: 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 1,680.4 -70.0% 2,838.9
Slide 27: 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 28: Q1 FY23: Consolidated Segment Analysis
Q1 FY23: Consolidated Segment Analysis Segment Q1FY23 Q1FY22 % Chg YoY Q4FY22 % Chg QoQ Less : Finance costs (net) 61.3 38.3 60.1% 45.8 33.8% Less : Unallocable expenditure net of income 17.9 6.4 179.7% 8.2 118.3% Profit before Tax 155.6 79.1 96.7% 111.9 39.1% Segment Results – % to Segment Revenue
Slide 29: 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 30: 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 31: 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