Apar Industries Limited · NSE:APARINDS
Apar Industries — Q3 FY18 Earnings Presentation
28 slides from Apar Industries's earnings presentation, February 2018
Slide 1: Q3 FY18 Earnings Presentation
Q4 & FY17 Earnings Presentation Apar Industries Ltd. Corporate PresentationQ3 FY18 Earnings Presentation Apar Industries Limited Earnings Presentation | Q3 FY18 1
Slide 2: 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 3: Q3FY18: Higher revenue across all segments
Q3FY18: Higher revenue across all segments Conductors revenue up 25% Revenue at Rs 638 crore, exports share at 47% (up from 44% in Q3FY17). Revenue (In Rs crore) 1,500 Order book at Rs 1,531 crore (9% up from Rs 1,406 crore in Q2FY18), up in both domestic and exports markets. HEC revenue contr
Slide 4: Transmission Sector witnesses continued policy initiatives
Transmission Sector witnesses continued policy initiatives UDAY scheme help 24 states reduce losses to nearly Rs 37,000 crore in FY17: The aggregate net losses of DISCOMs participating in UDAY have come down from Rs 51,590 crore in 2015-16 to Rs 36,905 crore in 2016-17. Nagaland, Andaman & Nicobar I
Slide 5: Section 1 Financial Performance
Section 1 Financial Performance Business performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q3 FY18 5
Slide 6: Q3FY18: Revenues up 31%
Q3FY18: Revenues up 31% Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q3 FY18 1,500 99 (6.6%) 40 (2.6%) 31% 8% 9% Q3 FY17 1,148 107 (9.3%) 43 (3.8%) Strong revenue growth led by higher revenue in Conductors, Cables and Specialty Oils. EBITDA impacted on account of higher
Slide 7: 9MFY18: Strong growth in Cables & Specialty Oils drives revenue growth
9MFY18: Strong growth in Cables & Specialty Oils drives revenue growth Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) 9M FY18 4,054 285 (7.0%) 105 (2.6%) 15% 13% 23% 9M FY17 3,533 326 (9.2%) 136 (3.9%) Revenue increased 15% on account of strong growth in Cables followed by
Slide 8: Section 2 Business performance
Financial Performance Section 2 Business performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q3 FY18 8
Slide 9: Conductors revenue up 25%
Conductors revenue up 25% Consolidated Figures in Rs crore EBITDA EBITDA per MT EBITDA EBITDA post adj* Volume (MT) Revenue (Margin %) (Rs per MT) (post adj*) (Rs per MT) Q3 FY18 638 28 (4.4%) 6,753 29 (4.6%) 6,986 41,657 25% 48% 53% 45% 50% 9% Q3 FY17 510 55 (10.7%) 14,305 53 (10.4%) 13,912 38,106
Slide 10: Conductors: 9M performance impacted by macro factors
Conductors: 9M performance impacted by macro factors Consolidated Figures in Rs crore EBITDA EBITDA per MT EBITDA EBITDA post adj* Volume (MT) Revenue (Margin %) (Rs per MT) (post adj*) (Rs per MT) 9M FY18 1,674 104 (6.2%) 9,432 98 (5.9%) 8,908 1,10,083 30% 25% 31% 26% 7% 9M FY17 1,666 148 (8.9%) 12
Slide 11: Specialty Oils delivers strong profitable growth
Specialty Oils delivers strong profitable growth Consolidated Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) Q3 FY18 567 46 (8.2%) 4,376 48 (8.4%) 4,522 1,05,758 34% 21% 4% 37% 17% 16% Q3 FY17 423 38 (9.0%) 4,197 35 (8.3%)
Slide 12: Specialty Oils: 9M delivers volume led revenue growth of 24%
Specialty Oils: 9M delivers volume led revenue growth of 24% Consolidated Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) 9M FY18 1,572 123 (7.8%) 4,122 123 (7.8%) 4,130 2,97,686 24% 12% 23% 8% 19% 14% 9M FY17 1,263 139 (11
Slide 13: Automotive segment delivers highest historical volumes
Automotive segment delivers highest historical volumes Automotive segment delivered sales volume of 8,716 KL in Q3FY18, 52% higher than 5,741 KL of Q3FY17 led by strong growth in OEM sales. OEM Segment posted its historically high volume in the quarter. Profitability in the segment was temporarily i
Slide 14: Cable business continue to deliver strong performance
Cable business continue to deliver strong performance Consolidated Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q3 FY18 285 30 (10.6%) 31 (10.8%) 36% 42% 50% Q3 FY17 211 21 (10.1%) 20 (9.7%) * After adjusting open period forex Revenue up 36% driven by Significant growth in Power
Slide 15: Cables business: 9M Revenue (34%) and Profitability (37%) up
Cables business: 9M Revenue (34%) and Profitability (37%) up Consolidated Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) 9M FY18 780 72 (9.2%) 72 ( 9.2%) 34% 39% 42% 9M FY17 584 52 (8.9%) 51 (8.7%) * After adjusting open period forex Revenue up 34% driven by Significant growth in P
Slide 16: Section 3 Company Overview
Financial Performance Business performance Section 3 Company Overview Annexure Apar Industries Limited Earnings Presentation | Q3 FY18 16
Slide 17: Apar Industries at A Glance
Apar Industries at A Glance 4th largest transformer oil Among top 3 conductors One of Leading Cable Manufacturer, manufacturer manufacturer in the world largest for Renewable Sector Cables Conductors Transformer & Sp Oil Auto Lubes Cables Diversified Portfolio includes over 400 types of specialty &
Slide 18: With established presence across diverse businesses
With established presence across diverse businesses Conductors Since 1958 Specialty Oils Since 1969 23% market share Transformer oil 45% market share 46% Revenue Contribution 35% revenue contribution Total Capacity: 180,000 MT Total Capacity:5,42,000KL Cables Since 2008 Auto Lubes Since 2007 Licensi
Slide 19: Capacity in place to fuel future growth
Capacity in place to fuel future growth. . . Strategic investments of Rs 550 crore+ which can manufacture the new higher value added products. Conductors - Rs 197 crore • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16. • Proximity to smelters, for logistical benefits. • To
Slide 20: Competitive strengths
Competitive strengths • Top 3 producer in conductors and Sp Oil in the world. Market Leader in key segments • 60% market share in power transformer oil and 40% in distribution transformer oil in India. • Among largest bare overhead aluminum conductor manufacturers in India, market share of 23%. • Te
Slide 21: Significant expansion in Profitability over the years
Significant expansion in Profitability over the years. . . Margins increased across businesses led by increased share of value added products All Figures in Rs crore Consolidated Revenue Exports contribution at 32% EBITDA margin up at 8.8% 5,122 425 5,082 4,840 3,336 10% 367 450 4,651 4,632 3,251 3,
Slide 22: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 32% to FY17 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 23: Section 4 Annexure
Financial Performance Business performance Company Overview Section 4 Annexure Apar Industries Limited Earnings Presentation | Q3 FY18 23
Slide 24: Q3 FY18: Consolidated Profit & Loss Statement
Q3 FY18: Consolidated Profit & Loss Statement % Chg Particulars (Rs crore) Q3 FY18 Q3 FY17 % Chg YoY Q2 FY18 % Chg QoQ 9MFY18 9MFY17 YoY Total Operating Income 1,498.9 1,262.3 18.7%* 1,247.8 20.1% 4,171.2 3,869.5 7.8% Total Expenditure 1,401.3 1,155.6 21.3% 1,159.1 20.9% 3,889.5 3,550.8 9.5% Cost of
Slide 25: Q3 FY18 Key Ratios- Consolidated
Q3 FY18 Key Ratios- Consolidated Key Ratios (%) Q3 FY18 Q3 FY17 Q2 FY18 9MFY18 9MFY17 EBITDA Margin 6.7% 9.5% 7.3% 7.2% 9.3% Net Margin 2.6% 3.8% 2.1% 2.6% 3.9% Total Expenditure/ Total Net Operating Income 93.5% 90.7% 92.9% 93.0% 91.0% Raw Material Cost/ Total Net Operating Income 79.2% 72.8% 76.3%
Slide 26: Q3 FY18: Consolidated Segment Analysis
Q3 FY18: Consolidated Segment Analysis Segment (Rs crore) Q3 FY18 Q3 FY17 %YoY Q2 FY18 % QoQ 9MFY18 9MFY17 % YoY Revenue Conductors 638.6 559.1 14.2% 494.8 29.1% 1,721.3 1,825.0 -5.7% Transformer & Specialty Oils 568.4 473.0 20.2% 506.2 12.3% 1,629.9 1,402.1 16.2% Power & Telecom Cables 285.6 225.5
Slide 27: Shareholding pattern
Shareholding pattern As on Dec 31, 2017 Outstanding shares – 3,82,68,619 Others, 10.64% Major Non-Promoter Shareholders Shareholding (%) Bodies Corporate, HDFC Trustee company 7.24 3.34% Reliance Capital 6.12 Goldman Sachs 2.96 Mutual Funds, 20.53% Raiffeisen Kapitalanlage 1.52 Promoter, 57.96% L &
Slide 28: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Lokesh Bhati Seema Shukla Apar industries Ltd Phone: +91 98731 32107 Phone: +91 124 425 1443 Phone: +91 22 67800400 lokesh.bhati@four-s.com Seema@four-s.com Email: kunder@apar.com Safe Harbor: This presentation may have ce