Apar Industries Limited · NSE:APARINDS
Apar Industries — Q3 FY2016 Earnings Presentation
28 slides from Apar Industries's earnings presentation, February 2016
Slide 1: Q3 FY'16 Earnings Presentation
Tomorrow’s Progress Today Q3 FY’16 Earnings Presentation Corporate Presentation Apar Industries Ltd 1 Apar Industries Limited Earnings Presentation | Q3 FY'16
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: Q3FY16: Profitability grows despite industry headwinds
Q3FY16: Profitability grows despite industry headwinds Consolidated Financials Revenue stabilized by growth in Cable segment and Volume growth in Oils segment Figures in Rs Cr Revenue EBITDA Margin PBT bef exceptional PAT Rs 1,203 Cr 7.1% 3.3% Rs 69 Cr Robust 47% YoY growth in Cables Up ~263bps YoY
Slide 4: Recent Government initiatives to boost Indian Power Sector
Recent Government initiatives to boost Indian Power Sector UDAY (Ujwal DISCOM Assurance Yojana) provides for the financial turnaround and revival of Power DISCOMs. States shall take over 75% of DISCOMs debt as on 30 Sep’ 15 over 2 years. - 15 States agrees to join UDAY- Andhra Pradesh, Rajasthan, Jh
Slide 5: Financial Performance
Financial Performance Business performance Company Overview Annexure 5 Apar Industries Limited Earnings Presentation | Q3 FY'16
Slide 6: Q3 FY'16 (Consol): Significant improvement in Margins
Q3 FY’16 (Consol): Significant improvement in Margins Figures in Rs Cr Consolidated Revenue EBITDA (Margin %) PAT *(Margin %) Q3 FY’16 1,203 85 (7.1%) 26 (2.2%) 9% 45% 460% Q3 FY’15 1,329 59 (4.4%) 5 (0.3%) * After adjusting exceptional gains Cables segment witnessed strong growth in the quarter, ho
Slide 7: 9MFY'16 (Consol): Apar reports strong growth in profits
9MFY’16 (Consol): Apar reports strong growth in profits Figures in Rs Cr Consolidated Revenue EBITDA (Margin %) PAT* (Margin %) 9MFY’16 3,733 273 (7.3%) 81 (2.2%) 1% 30% 100% 9MFY’15 3,768 209 (5.6%) 40 (1.1%) * After adjusting exceptional gains Revenue impacted marginally due to decline in Speciali
Slide 8: Segmental Overview
Financial Performance Segmental Overview Business Performance Company Overview Annexure 8 Apar Industries Limited Earnings Presentation | Q3 FY'16
Slide 9: Conductors EBITDA per MT improved in a stressed pricing scenario
Conductors EBITDA per MT improved in a stressed pricing scenario Figures in Rs Cr EBITDA EBITDA (Rs per EBITDA (post EBITDA post adj* Revenue (Margin %) MT) adj*) (Rs per MT) Q3 FY’16 542 28 (5.2%) 7,589 26 (4.8%) 7,150 17% 20% 9% 3% 10% 30% 30% Q3 FY’15 656 35 (5.3%) 8,303 27 (4.1%) 6,488 * After a
Slide 10: Conductors 9MFY'16 revenue up 12%
Conductors 9MFY’16 revenue up 12% Figures in Rs Cr EBITDA EBITDA (Rs per EBITDA (post EBITDA post adj* Revenue (Margin %) MT) adj*) (Rs per MT) 9MFY’16 1,836 93 (5.1%) 7,773 81 (4.4%) 6,728 12% 15% 24% 16% 24% 30% 30% 9MFY’15 1,646 110 (6.7%) 10,163 96 (5.8%) 8,882 * After adjusting open period fore
Slide 11: Speciality Oils: Margins up significantly with strategic initiatives
Speciality Oils: Margins up significantly with strategic initiatives Figures in Rs Cr EBITDA EBITDA (Rs per EBITDA (post EBITDA post Revenue Volume (KL) (Margin %) KL) adj*) adj* (Rs per KL) Q3FY'16 453 45 (10.0%) 5,308 42 (9.3%) 4,975 85,369 15% 165% 149% 425% 354% 10% 30% 30% Q3FY'15 531 17 (3.2%)
Slide 12: Specialty Oils: Profitability & volumes improves in difficult market
Specialty Oils: Profitability & volumes improves in difficult market Figures in Rs Cr EBITDA EBITDA (Rs per EBITDA (post EBITDA post Revenue Volume (KL) (Margin %) KL) adj*) adj* (Rs per KL) 9MFY'16 1,404 162 (11.6%) 6,551 141 (10.1%) 5,711 2,47,523 20% 87% 83% 124% 119% 2% 30% 30% 9MFY'15 1,746 87
Slide 13: Auto Lubes: Profitability improves despite a challenging quarter
Auto Lubes: Profitability improves despite a challenging quarter Automotive segment sales improved by 8.3% compared to same period last year but retail market sales continues to be sluggish. Higher Profitability from Automotive segment on account of disciplined pricing, improved product mix and lowe
Slide 14: Cables segment posts robust growth in revenue & margins
Cables segment posts robust growth in revenue & margins Figures in Rs Cr Revenue EBITDA (Margin %) EBITDA (post adj*) Order Book Q3 FY’16 206 17 (8.3%) 16 (7.8%) 224 47% 42% 78% 24% Q3 FY’15 140 12 (8.6%) 9 (6.4%) 180 * After adjusting open period forex Revenue up 47% YoY from Rs 140 Cr in Q3FY'15 t
Slide 15: Cables: Higher Revenue & Improved product-mix driving growth & margins
Cables: Higher Revenue & Improved product-mix driving growth & margins Figures in Rs Cr Revenue EBITDA (Margin %) EBITDA (post adj*) 9MFY’16 480 33 (6.9%) 29 (6.1%) 24% 38% 53% 9MFY’15 388 24 (6.2%) 19 (4.9%) * After adjusting open period forex Revenue up 24% YoY from Rs 388 Cr in 9MFY'15 to Rs 480
Slide 16: Power Sector Overview
Financial Performance Business Performance Power Sector Overview Company Overview Annexure 16 Apar Industries Limited Earnings Presentation | Q3 FY'16
Slide 17: Global leader in Conductors & Transformer Oils
Global leader in Conductors & Transformer Oils Dominating global presence in power transmission & distribution • 3rd largest conductors manufacturer and 4th largest transformer oil manufacturer in the world Diverse Portfolio • Over 400 types of specialty and automotive oils; largest range of convent
Slide 18: With established presence across diverse businesses
With established presence across diverse businesses Conductors Specialty Oils 23% market share 45% market share Total Capacity: Total Capacity:4,42,000KL 150,000MTA Rabale : 222,000KL Silvassa : 82629MT Silvassa : 220,000 KL Umbergaon : 20868MT Athola : 46000MT 45% revenue contribution 38% revenue c
Slide 19: Competitive strengths
Competitive strengths Best in class Diversified into new Market Leader in key Strong relationships technology & Strong export market business for growth segments with large clientele diversified products • Top 5 largest • Technology tie up with • Preferred supplier to • Exports to over 100 • Entered
Slide 20: Maintained strong revenue growth over the years
Maintained strong revenue growth over the years Figures in Rs Cr Sustained 18% CAGR revenue growth driven by growth in all segments. . . . Consolidated Revenue Revenue Geographic Break-up Exports grew at 22% CAGR 5,122 3251 3,449 18% CAGR 4,651 4,633 3078 2569 3,595 2289 3,033 Export, 1555 1,673 33%
Slide 21: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries resulting in 31% 3yr CAGR in exports 3 1 2 Warehouse Apar’s presence 1 Australia 2 South Africa 3 Turkey Oil Conductor Cable Adopted a hub and spoke manufacturing and distribution model for specialty oils - allows efficient delivery cy
Slide 22: Financial Overview
Financial Performance Business Performance Company Overview Financial Overview Annexure 22 Apar Industries Limited Earnings Presentation | Q3 FY'16
Slide 23: Q3 FY'16: Profit & Loss Statement- Standalone
Q3 FY'16 : Profit & Loss Statement- Standalone Particulars (Rs Cr) Q3 FY'16 Q3 FY'15 % Chg YoY Q2 FY'16 % Chg QoQ 9MFY'16 9MFY'15 % Chg YoY FY'15 Net sales 1,179.7 1,290.4 -8.6% 1,241.2 (5.0%) 3,661.5 3,644.9 0.5% 4,968.7 Other Operating Income 6.5 8.4 (22.6%) 9.6 (32.2%) 23.4 28.1 (16.7%) 42.3 Tota
Slide 24: Key Ratios – Standalone
Key Ratios – Standalone Key Ratios (%) Q3 FY'16 Q3 FY'15 Q2 FY'16 9MFY'16 9MFY'15 EBITDA Margin 7.1% 4.3% 7.2% 7.3% 5.6% Net Margin 5.7% 0.2% 2.0% 3.3% 1.1% Total Expenditure/ Total Operating Income 93.1% 95.7% 92.8% 92.8% 94.6% Raw Material Cost/ Total Operating Income 74.0% 80.5% 77.0% 76.0% 78.7%
Slide 25: Q3 FY'16: Standalone Segment Analysis
Q3 FY'16 : Standalone Segment Analysis Segment (Rs Cr) Q3 FY'16 Q3 FY'15 %YoY Q2 FY'16 % QoQ 9MFY'16 9MFY'15 % Chg YoY FY'15 Revenue Conductors 542.0 655.6 -17.3% 653.8 (17.1%) 1,835.5 1,645.6 -11.5% 2,320.1 Transformer & Specialty Oils 434.8 501.0 (13.2%) 457.1 (4.9%) 1,355.3 1,627.9 (16.7%) 2,115.
Slide 26: Balance Sheet Statement – Consolidated: FY'15
Balance Sheet Statement – Consolidated : FY’15 Balance Sheet FY’15 FY’14 Liabilities Total Shareholder's Funds 730 696 Minority Interest 1 2 Non-current Liabilities: (a) Long-term borrowings 95 70 (b) Deferred tax liabilities (net) 27 22 (c) Other-long term liabilities 2 7 (d) Long-term provisions 4
Slide 27: Shareholding pattern
Shareholding pattern As on Dec 31, 2015 Outstanding shares – 3,84,96,769 Others, 7.4% Major Non-Promoter Shareholders Shareholding (%) Templeton Strategic Emerging Markets Funds 9.45 Bodies Corporate, HDFC Trustee company 6.77 14.7% Reliance Capital 3.52 DII, 11.2% Promoter, 58.2% Goldman Sachs 2.94
Slide 28: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder Nisha Kakran Seema Shukla Apar industries Ltd Phone: +91 22 4215 3659 Phone: +91 124 425 1443 Phone: +91 22 67800400 Mumbai Gurgaon Email: kunder@apar.com Nisha.kakran@four-s.com seema@four-s.com Safe Harbor: This presenta