Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (February 2020)
40 slides from Apar Industries's investor presentation, Feb 11, 2020
Slide 1: Exchange filing cover letter
REGD. OFFICE a MARI<EllNG OFFICE : 301/306, PANORAMA COMPLEX, R. C. DUTI ROAD, VADODARA- 390007. INDIA T : (+91) (265) 2323175/2323176 APAR INDUSTRIES LTD. ( +91) (265) 2322798 F : ( +91) (265) 2330309 E : apar.baroda@apar.com uri : www.apar.com SEC/11 02/2020 11 1h February, 2020 National Stock Exc
Slide 2: Corporate Presentation February 2020
Corporate Presentation February 2020 1 Apar Industries Limited Corporate Presentation
Slide 3: Apar Industries: Tomorrow's progress today
Apar Industries: Tomorrow’s progress today Strong & Sustainable leadership in power sector Well-positioned to capture broad-based demand Among the largest global manufacturer of Conductors 4th largest global manufacturer of Transformer oils #1 domestic Cable manufacturer for renewables A leading pla
Slide 4: 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 • Market share of 23%. • Pioneer in
Slide 5: 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 6: 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 7: Extensive global presence driving exports
Extensive global presence driving exports Presence in 100 countries, Exports revenues up 17% YoY in FY19 at Rs 2,443 crore 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 Australi
Slide 8: 9MFY20 EBITDA up 8% YoY despite revenue headwinds
9MFY20 EBITDA up 8% YoY despite revenue headwinds Cautious order-booking amidst domestic credit tightness, global & domestic slowdown impact YTD FY20 Revenue 2,466 2,120 1,886 1,984 1,769 1,830 1,837 1,500 1,499 1,306 1,249 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Slide 9: Segmental Overview
Segmental Overview Company Overview 8 Apar Industries Limited Corporate Presentation
Slide 10: Conductors: Largest manufacturer and exporter from India
Conductors: Largest manufacturer and exporter from India Increasing share from higher-value products – 36.7% in 9M FY20 Volume (In ‘000 MT) • FY19 Revenue at Rs 3,915 crore, up 55% YoY. Record-high production and 11% CAGR (FY14-19), Up 1% YoY in 9M FY20 sales volumes. • Higher-value products - High
Slide 11: Conductors: Transforming growth through strategic initiatives
Conductors: Transforming growth through strategic initiatives Strategic investments of Rs 367 crore in Increased share of higher-value products FY13-FY19. Low capex ahead. 35% targeted in FY20 from 25% in FY19 • Jharsuguda (Odisha) plant commissioned with 30,000 MT capacity High-efficiency conductor
Slide 12: Specialty Oils: Continued leadership with a global footprint
Specialty Oils: Continued leadership with a global footprint Global & domestic markets subdued in 9M FY20 but EBITDA up with stable base oil prices & rupee. Volume (In ‘000 KL) • FY19 revenue increased 22% YoY to reach Rs 2,630 crore in FY19 driven 6% CAGR 430 389 by record sales in volumes driven b
Slide 13: Oils: Transforming growth through key strategic initiatives
Oils: Transforming growth through key strategic initiatives Strategic investments of Rs 205 crore in Increased share of higher-value products FY13-FY19, low capex ahead • Al-Hamriyah, Sharjah plant (1 lakh KL capacity, Jan’17). • Proximity to customers in Middle East & East Africa. Auto & industrial
Slide 14: 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, Poweroil manufacture ENI branded lubricants, positioned at upper end of the market. • Best in Class lubricants delivering great “Performance
Slide 15: Cables: Diversified presence across industries
Cables: Diversified presence across industries 9MFY20 impacted by slowdown in some sectors like telecom; focus on copper cables, renewables help • FY19 revenue increased 51% YoY to reach Rs 1,684 crore. Revenue (In Rs Crore) • Record-high volumes achieved in the year. • Higher-value elastomeric/e-be
Slide 16: New industry segments driving growth in cables
New industry segments driving growth in cables Strategic investments of Rs 281 crore in Increased share of higher-value products FY13-FY19 40% targeted in FY20 from 38% in FY19 • Green field Khatalwad plant for E-beam Elastomeric Cables, Elastomeric/ E-beam Cables Optical Fibre Cables (OFC) & other
Slide 17: Well-positioned to capture industry growth
Well-positioned to capture industry growth • Apar targets T&D & renewables through conductors, cables and T-oils; Railways by copper conductors and elastomeric cables, defense by elastomeric cables, automotive by auto lubes, & telecom by OFC cables products. • First mover advantage in key products.
Slide 18: Power Sector Overview
Power Sector Overview Company Overview 17 Apar Industries Limited Corporate Presentation
Slide 19: India achieves electricity access, Reforms 2.0 in works for 24X7 power
India achieves electricity access, Reforms 2.0 in works for 24X7 power Growing demand, significant generation capacity addition targets to boost T&D demand. • India’s power demand expected to be 226 GW by FY22 and 299 GW by FY27 Per capita electricity consumption (India) (current 172 GW) as per Nati
Slide 20: Discom reforms 2.0 – in works
Discom reforms 2.0 – in works UDAY 2.0 Implementation Status – trend reveral in FY19, losses up 89% YoY ACS-ARR Gap (Rs./unit) AT&C Losses (%) Book Losses (Rs crore) 0.7 50.0% 60,000 50.0% 0.59 45.0% 20.7% 51,480 45.0% 0.6 21.00% 50.0% 40.0% 20.50% 20.2% 50,000 45.0% 40.0% 0.5 0.41 35.0% 20.00% 40.0
Slide 21: T&D progress under 13th plan
T&D progress under 13th plan End of 13th End of 10th End of 11th End of 12th System Type As on Dec'19 plan plan plan plan (Targeted) AC transmission Lines(In C Kms) 1,90,251 2,48,049 3,52,295 405,688 4,50,700 HVDC (In C Kms) 5,872 9,432 15,556 15,556 19,815 Total (In C Kms) 1,96,123 2,57,481 3,67,85
Slide 22: Financial Performance
Financial Performance Company Overview 21 Apar Industries Limited Corporate Presentation
Slide 23: Increased scale with strategic expansion in higher value products
Increased scale with strategic expansion in higher value products Figures in Rs crore Consolidated Revenue Geographic Break-up of Exports grew at 9% CAGR FY19 Revenue 5,528 7,971 Export, 31% 3,736 5,823 5,650 3,062 3,297 3,336 3,297 4,632 5,122 5,082 4,840 2,087 2,443 1,570 1,825 1,744 1,544 Domesti
Slide 24: 9M FY20 EBITDA up 8% YoY with focus on higher-value products
9M FY20 EBITDA* up 8% YoY with focus on higher-value products Figures in Rs crore, consolidated financials EBITDA / Margin PAT / Margin 600 6.5% 4.9% 7.2% 8.8% 7.1% 6.0% 6.4% 240 1.9% 2.4% 3.6% 2.5% 2.0% 5.0% 10.0% 1.0% 1.7% 475 500 425 0.0% 176 412 190 0.0% 400 367 364 -10.0% 145 136 301 140 121 11
Slide 25: Strong Balance Sheet
Strong Balance Sheet Stringent credit control systems in place. . . FY15 FY16 FY17 FY18 FY19 Debtor Days 90 78 95 109 98 Inventory Days 67 55 75 76 59 Payables Days 112 100 134 160 150 Low debt /equity ratio. . . FY15 FY16 FY17 FY18 FY19 Current Ratio 1.5 1.3 1.3 1.3 1.2 D/E 0.1 0.1 0.1 0.2 0.1 Inte
Slide 26: Annexure
Annexure Company Overview 25 Apar Industries Limited Corporate Presentation
Slide 27: Key Milestones
Key Milestones Set up capacities for Commissioning Copper of Sharjah Conductors, Plant; Rods, CTC, high- Signed voltage power agreement with cables (CCV Set up Hindalco for technology) Conductors Conductors Plant in Conductors Jharsuguda plant set up at Athola Acquired Installed 2 E- Entered into Un
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: 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 30: Strong clientele with long lasting relationships
Strong clientele with long lasting relationships 29 Apar Industries Limited Corporate Presentation Apar Industries Limited Corporate Presentation
Slide 31: Annexure: Financials
Annexure: Financials Company Overview 30 Apar Industries Limited Corporate Presentation
Slide 32: Consolidated Profit & Loss Statement (Historical)
Consolidated Profit & Loss Statement (Historical) FY15 FY16 FY17 FY18 FY19 Revenue from operations (net) 5,122 5,078 4,832 5,819 7,964 Other income 2 10 16 11 15 TOTAL REVENUE (i) 5,124 5,088 4,848 5,830 7,979 EXPENSES: Cost of Raw Materials 4,085 3,905 3,573 4,495 6,336 Employee benefits expense 79
Slide 33: Consolidated Balance Sheet Statement (Historical)
Consolidated Balance Sheet Statement (Historical) (In Rs Cr) FY15 FY16 FY17 FY18 FY19 Liabilities Total Shareholder's Funds 730 854 1,036 1,108 1,202 Minority Interest 1 Non-current Liabilities: (a) Long-term borrowings 95 84 91 162 130 (b) Deferred tax liabilities (net) 27 31 46 35 40 (c) Other-lon
Slide 34: 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 773.8 703.7 (a) Eq
Slide 35: Consolidated Statement of cash flows for 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 36: Q3 FY20: Consolidated Profit & Loss Statement
Q3 FY20: Consolidated Profit & Loss Statement Particulars (Rs crore) Q3 FY20 Q3 FY19 % Chg YoY Q2 FY20 % Chg QoQ 9M FY20 9M FY19 % Chg YoY Total Operating Income -13% 0% 5,499.3 3% 1,836.6 2,119.1 1,829.1 5,647.3 Total Expenditure -15% 0% 5,166.9 2% 1,713.5 2,004.7 1,719.6 5,277.6 Cost of Raw Materi
Slide 37: Q3 FY20 Financials
Q3 FY20 Financials Key Ratios Key Ratios (%) Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 EBITDA Margin 6.8% 5.5% 6.1% 6.7% 6.2% Net Margin 2.0% 1.6% 1.9% 2.0% 1.7% Total Expenditure/ Total Net Operating 93.3% 94.6% 94.0% 93.4% 94.0% Income Raw Material Cost/ Total Net 75.9% 80.1% 77.8% 77.3% 79.1% Opera
Slide 38: Q3 FY20: Consolidated Segment Analysis
Q3 FY20: Consolidated Segment Analysis Segment (Rs Cr) Q3 FY20 Q3 FY19 % Chg YoY Q2 FY20 % Chg QoQ 9M FY20 9M FY19 % Chg YoY Revenue Conductors 868.3 1,052.2 -17% 895.9 -3% 2,786.0 2,585.9 8% Transformer & Specialty Oils 587.4 727.3 -19% 571.2 3% 1,778.0 1,933.6 -8% Power & Telecom Cables 391.3 419.
Slide 39: Shareholding pattern
Shareholding pattern As on December 31, 2019 Outstanding shares – 3,82,68,619 Others, 10.29% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 9.25 Bodies, 1.28% L & T Mutual Fund Trustee Ltd 6.45 DII, 23.14% Reliance Capital 6.04 Goldman Sachs 2.62 Promoter, 59.38% Rai
Slide 40: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Apar industries Ltd Rupam Prasad Seema Shukla Phone: +91 22 67800400 Phone: +91 83750 48395 Phone: +91 124 425 1443 Email: kunder@apar.com rupam.prasad@four-s.com seema@four-s.com Safe Harbor: This presentation may have ce
Apar Industries — Investor Presentation (February 2020) on 6ix