Apar Industries Limited · NSE:APARINDS
Apar Industries — Q2 FY20 Earnings Presentation
30 slides from Apar Industries's earnings presentation, Nov 7, 2019
Slide 1: Cover letter to stock exchanges: Investor Update
ooRroRAIE oFFk= : APAR HOUSE, CORPORATE PARK, SION TROMBAY ROAD, CHEMBUR, MUMBAI -400 071. INDIA AIAR INDUSTRIES LTD.. t` T F : (+91)(22) 25263400/67800400 : (+91)(22) 25246326 E : corporate@apar.com url : www.apar.com SEC/0711 /2019 7th November, 2019 National Stock Exchange of India Ltd. BSE Ltd.
Slide 2: Q2 FY20 Earnings Presentation
Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q2 FY20 Earnings Presentation Corporate Presentation Apar Industries Limited Earnings Presentation | Q2 FY20 1
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 FY20: Performance affected due to a challenging domestic market
Q2 FY20: Performance affected due to a challenging domestic market Lower domestic demand due to heavy & extended monsoon, credit tightness & slowdown in key sectors. Exports up 9% YoY Conductors - Revenue at Rs 896 crore, order book at Rs 2,621 crore Sales volume at 43,448 MT, up 8% YoY. Higher
Slide 5: Indian Power Sector update: Second generation reforms in works
Indian Power Sector update: Second generation reforms in works Projected generation growth (National Electricity Plan, 2018) to boost transmission demand: Peak Demand to be 226 GW by 2022 and to 299 GW by 2027 (from current 184 GW), Installed Capacity to be 479 GW by 2022 and 619 GW by 2027 (from cu
Slide 6: Financial Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY20 5
Slide 7: Q2 FY20: Flat performance amidst lower domestic demand
Q2 FY20: Flat performance amidst lower domestic demand Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q2 FY20 1,830 109 (6.0%) 34 (1.9%) 3% 1% 18% Q2 FY19 1,886 110 (5.8%) 29 (1.5%) Revenue down 3% YoY impacted mainly due to lower demand due to ext
Slide 8: H1 FY20: Revenues up 13% YoY, PAT up 30% YoY
H1 FY20: Revenues up 13% YoY, PAT up 30% YoY Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) H1 FY20 3,814 246 (6.4%) 75 (2.0%) 13% 11% 30% H1 FY19 3,384 222 (6.6%) 58 (1.7%) Revenue up 13% YoY, mainly driven by Conductors business. EBITDA up 11% Yo
Slide 9: Business Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY20 8
Slide 10: Conductors Q2 FY20: Steady revenue despite lower domestic demand
Conductors Q2 FY20: Steady revenue despite lower domestic demand 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) Q2 FY20 896 9,654 34 (3.8%) 7,789 43,448 42 (4.7%) 61% 0% 8% 11% 18% 23% 28% Q
Slide 11: Conductors H1FY20: Revenues up 25% YoY
Conductors H1FY20: Revenues up 25% 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) H1 FY20 1,918 10,574 85 (4.4%) 9,921 85,250 90 (4.7%) 25% 4% 18% 2% 13% 17% H1 FY19 1,534 94 (6.1%) 12,8
Slide 12: Oils Q2 FY20: Improved profitability with stable base oil prices
Oils Q2 FY20: Improved profitability with stable base oil prices Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) Q2 FY20 571 34 (6.0%) 3,467 28 (4.9%) 2,846 98,156 9% 90% 102% 104% 117% 6% Q2 FY19 6
Slide 13: Oils H1 FY20: Marginal decline in revenues, but improved profitability
Oils H1 FY20: Marginal decline in revenues, but improved profitability Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) H1 FY20 1,191 76 (6.4%) 3,701 69 (5.8%) 3,398 2,04,510 1% 42% 37% 62% 57% 3% H1
Slide 14: Cables Q2 FY20: Revenue declines due to lower demand, margins sustained
Cables Q2 FY20: Revenue declines due to lower demand, margins sustained Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q2 FY20 369 42 (11.4%) 41 (11.2%) 16% 16% 16% Q2 FY19 438 50 (11.4%) 49 (11.2%) * After adjusting open period forex Revenue down 16% YoY i
Slide 15: Cables H1 FY20: Steady revenues, EBITDA (Post adj*) up 18% YoY
Cables H1 FY20: Steady revenues, EBITDA (Post adj*) up 18% YoY Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) H1 FY20 763 94 (12.3%) 93 (12.2%) 1% 14% 18% H1 FY19 756 82 (10.9%) 79 (10.5%) * After adjusting open period forex Revenue stable at Rs 763 crore.
Slide 16: Company Overview
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY20 15
Slide 17: Apar Industries at a glance
Apar Industries at a glance Strong & Sustainable leadership Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils Well-positioned to capture broad-based demand.. #1 domestic Cable manufacturer for renewables A leading player in auto lubricants. One o
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
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
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.
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 16
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
Slide 23: Annexure
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY20 22
Slide 24: Q2 FY20: Consolidated Profit & Loss Statement
Q2 FY20: Consolidated Profit & Loss Statement Particulars (Rs crore) Q2 FY20 Q2 FY19 % Chg YoY Q1 FY20 % Chg QoQ H1FY20 H1FY19 % Chg YoY Revenue from operations 1,829.1 1,884.7 -3% 1,981.6 -8% 3,810.6 3,380.2 13% Total Expenditure 1,719.6 1,775.8 -3% 1,844.5 -7% 3,564.1 3,162.2 13% Cost of Raw Mater
Slide 25: Q2 FY20 Financials
Q2 FY20 Financials Key Ratios In %, Consolidated Q2 FY20 Q2 FY19 Q1 FY20 H1FY20 H1FY19 EBITDA Margin 6.1% 6.0% 7.1% 6.6% 6.7% Net Margin 1.9% 1.5% 2.1% 2.0% 1.7% Total Expenditure/ Total Net Operating Income 94.0% 94.2% 93.1% 93.5% 93.6% Raw Material Cost/ Total Net Operating Income 77.8% 79.9% 78.0
Slide 26: Q2 FY20: Consolidated Segment Analysis
Q2 FY20: Consolidated Segment Analysis Segment (Rs Crore) Q2 FY20 Q2 FY19 % Chg YoY Q1 FY20 % Chg QoQ H1FY20 H1FY19 % Chg YoY Revenue Conductors 895.9 898.2 0% 1,021.7 -12% 1,917.6 1,533.7 25% Transformer & Specialty Oils 571.2 630.1 -9% 619.4 -8% 1,190.6 1,206.4 -1% Power & Telecom Cables 368.9 437
Slide 27: Q2 FY20: Consolidated Balance Sheet
Q2 FY20: Consolidated Balance Sheet As at As at As at As at # Particulars (In Rs crore) September March 31, # Particulars (In Rs crore) September March 31, 30, 2019 2019 30, 2019 2019 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Plant and Equipment (a) Equity Share c
Slide 28: Consolidated Statement of cash flows for the half year ended Sep 30, 2019
Consolidated Statement of cash flows for the half year ended Sep 30, 2019 For the For the Particulars (In Rs crore) Half year ended Sept 30, 2019 Half year ended Sept 30, 2018 Cash flow from operating activities Profit before tax 86.6 87.0 Adjustments for Depreciation on property, plant and equipmen
Slide 29: Shareholding pattern
Shareholding pattern As on September 30, 2019 Outstanding shares – 3,82,68,619 Others, 10.10% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 9.25 Bodies, 1.19% L & T Mutual Fund Trustee Ltd 6.45 Reliance Capital 6.09 DII, 24.16% Goldman Sachs 2.64 Promoter, 58.68% Ra
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