Apar Industries Limited · NSE:APARINDS
Apar Industries — Q3 FY2022 Earnings Presentation
28 slides from Apar Industries's earnings presentation, Jan 31, 2022
Slide 1: Cover letter to stock exchanges: Investor Update Q3FY22
AFIAR Tomorrow's solutions today SEC/3101/2022 31st January, 2022 National Stock Exchange of India Limited BSE Limited "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. Mumb
Slide 2: APAR Industries Ltd. Q3 & 9M FY22 Investor Update
APAR Industries Ltd. Q3 & 9M FY22 Investor Update
Slide 3: 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 4: Q3 FY22: Revenue up 22% from pre-COVID
Q3 FY22: Revenue up 22% from pre-COVID Consolidated Financials | Figures in INR crore Revenue EBITDA PAT 2,235 127 55 Up 32% YoY Down 22% YoY | Up 7% from Q3FY20 # Down 33% YoY | Up 50% from Q3FY20 # Up 22% from Q3FY20# Margin at 5.7% | 9.7% (Q3FY21) | 6.5% (Q3FY20#) Margin at 2.5% | 4.9% (Q3FY21) |
Slide 5: 9M FY22: Profitability steady, PAT up 56% from pre-COVID
9M FY22: Profitability steady, PAT up 56% from pre-COVID Consolidated Financials | Figures in INR crore Revenue EBITDA PAT 6,328 393 174 Up 41% YoY Up 24% YoY | Up 8% from 9MFY20 # Up 54% YoY | Up 56% from 9MFY20 # Up 12% from 9MFY20# Margin at 6.2% | 7.0% (9MFY21) | 6.5% (9MFY20#) Margin at 2.8% |
Slide 6: Business Performance
Business Performance APAR
Slide 7: Conductors: Q3 FY22 Highlights
Conductors: Q3 FY22 Highlights ▪ Revenue up 27% YoY and 8% from pre-COVID (Q3FY20). Volumes in line with Revenue Volume strategy that focuses on premiumisation of products vs total volume; Exports remain impacted: INR 939 crore 22,415 MT o Delay in order execution due to logistics and inspection iss
Slide 8: Conductors: 9M FY22 Highlights
Conductors: 9M FY22 Highlights Revenue Volume ▪ Revenue up 30% YoY to reach pre-COVID levels. Exports down 24% YoY; at 34% revenue contribution versus 53% in 9MFY21. INR 2,697 crore 73,508 MT ▪ Higher Value products (HEC + Copper Conductor + OPGW + CTC) Up 30% YoY Down 24% YoY contribution up to 47%
Slide 9: Speciality Oils & Lubricants: Q3 FY22 Highlights
Speciality Oils & Lubricants: Q3 FY22 Highlights Revenue Volume ▪ Revenue up 31% YoY and 54% from pre-COVID (Q3FY20) but volumes INR 905 crore 1,16,109 KL remained flat. Exports contributed 42% to revenues versus 41% in Q3FY21. Up 31% YoY 1,20,205 (Q3FY21) ▪ Hamriyah plant’s capacity utilisation was
Slide 10: Speciality Oils & Lubricants: 9M FY22 Highlights
Speciality Oils & Lubricants: 9M FY22 Highlights Revenue Volume INR 2,632 crore 3,44,568 KL ▪ Revenue up 60% YoY and 48% from pre-COVID (9MFY20). Up 60% YoY Up 17% YoY ▪ Exports contributed 45% to revenues versus 43% in 9MFY21. ▪ Hamriyah plant’s capacity utilisation up at 104% from 84% in EBITDA EB
Slide 11: Lubricants: Q3 & 9M FY22 Highlights
Lubricants: Q3 & 9M FY22 Highlights Revenue Volume ▪ Revenues up 11% YoY and 42% from pre-COVID (Q3FY20). Q3 FY22 INR 199 crore 15,390 KL o Industrial Oil volumes remained flat at 4,800 KL. Up 11% YoY Down 20% YoY o Automotive Oil volumes declined 26% YoY due to slow retail demand and lower Tractor
Slide 12: Cables: Q3 FY22 Highlights
Cables: Q3 FY22 Highlights ▪ Revenue up 51% YoY and 24% over Q3FY20#. ▪ Exports continue to be in focus contributing 35% to revenues versus 16% in EBITDA Q3FY21. Revenue ▪ Competitive domestic environment is expected to continue for XLPE INR 486 crore INR 16 crore cables. ▪ The Light Duty Cables (LD
Slide 13: Cables: 9M FY22 Highlights
Cables: 9M FY22 Highlights Revenue EBITDA ▪ Revenue up 59% YoY and 13% over 9MFY20#. ▪ Focussed exports strategy drives exports revenues up 140% YoY INR 1,310 crore INR 60 crore contributing 28% to revenues versus 18% in 9MFY21. Up 59% YoY Up 29% YoY ▪ Benefits from higher sales in exports has been
Slide 14: Company Overview
Company Overview APAR
Slide 15: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 3 rd #1 INR 6,405 Cr Largest global aluminum & alloy Cables manufacturer for FY21 Consolidate Revenue, Largest global manufacturer of conductors’ manufacturer renewables in India 7.3% FY17-FY21 CAGR Transformer oils Leveraging global network Leading the
Slide 16: Well-diversified across industries & segments
Well-diversified across industries & segments APAR today targets: ▪ Power Transmission & Distribution (T&D) and Renewable Energy sectors through Conductors, Cables and Transformer oils (T-oils). ▪ Railways through Copper Catenary Conductors, XLPE & Elastomeric cables & Harnesses. ▪ Defence through E
Slide 17: Extensive global presence driving exports
Extensive global presence driving exports Export revenues up 3.2% YoY, contributed 41.3% to FY21 revenues. ▪ Present in 125 countries with a focus on Southeast Asia, Middle East, Africa & South America. ▪ Hub and spoke manufacturing & distribution model for specialty oils - allows efficient delivery
Slide 18: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers Strong leadership & competitive edge Strategic focus on higher-value products (32.6% in FY21) 1.8 lakh MT p.a. capacity Adj. EBITDA* per MT at INR 18,987 in Q3 FY22 FY21 revenue of INR 2,908 crore, 6.6% FY17-FY21 CAGR INR 344 crore invested in FY1
Slide 19: Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally
Specialty Oils & Lubricants – 3rd largest in Transformer-Oils globally Strong leadership & competitive edge Strategic focus on higher-value products Leading domestic player in auto lubes. INR 208 crore invested in FY15-FY21 FY21 revenue of INR 2,364 crore, 8.6% FY17-FY21CAGR. Lubricants (Auto lubes
Slide 20: Cables - Largest domestic player in renewables
Cables - Largest domestic player in renewables Strong leadership & competitive edge Strategic focus on higher-value products 60% share in domestic wind sector INR 265 crore invested in FY15-FY21 FY21 revenue of INR 1,270 crore, 10.1% FY17-FY21 CAGR. ▪ Green-field Khatalwad plant for E-beam Elastomer
Slide 21: Strong financial performance sustained over the years
Strong financial performance sustained over the years Consolidated Revenue Exports contribution at 41% in FY21 EBITDA & margin Exports Domestic 475 468 7,971 425 20% 7,438 5,528 460 412 422 18% 4,956 393 6,405 6,328 410 16% 5,823 3,736 3,751 14% 3,297 360 12% 4,840 310 10% 8% 1,544 260 8.8% 6% 2,443
Slide 22: Strong industry growth drivers
Strong industry growth drivers Indian Power Sector Update Economic Recovery ▪ Short-term loans in the works for power Discoms: Outstanding dues of DISCOMs rose India’s real GDP growth projection 4.4% YoY to Rs 1,21,030 crore as of December 31, 2021. retained at 9.5% for FY22 by RBI consisting ▪ Prog
Slide 23: Annexure
Annexure APAR
Slide 24: Q3 FY22: Consolidated Profit & Loss Statement
Q3 FY22: Consolidated Profit & Loss Statement Figures in INR crore Particulars Q3FY22 Q3FY21 % Chg. YoY Q2FY22 % Chg QoQ 9MFY22 9MFY21 % Chg YoY Gross sales 2,221.3 1,705.7 30% 2,262.4 -2% 6,286.7 4,462.3 41% Other Operating Income 7.6 8.2 -8% 6.7 13% 20.8 26.2 -21% Total Operating Income 2,228.8 1,
Slide 25: Q3 FY22: Financials
Q3 FY22: Financials Key Ratios Q3FY22 Q3FY21 Q2FY22 9MFY22 9MFY21 EBITDA Margin 5.6% 9.7% 5.8% 6.3% 7.3% Net Margin 2.5% 4.8% 2.5% 2.8% 2.5% Total Expenditure/ Total Net Operating Income 94.8% 90.6% 94.4% 94.1% 93.0% Raw Material Cost/ Total Net Operating Income 77.5% 72.1% 78.1% 77.1% 74.7% Staff C
Slide 26: Q3 FY22: Consolidated Segment Analysis
Q3 FY22: Consolidated Segment Analysis Figures in INR crore Segment Q3FY22 Q3FY21 % Chg YoY Q2FY22 % Chg. QoQ 9MFY22 9MFY21 % Chg YoY Revenue Conductors 940.4 736.5 28% 1,080.6 -13% 2,700.5 2,071.5 30% Transformer & Specialty Oils 905.3 693.0 31% 895.2 1% 2,632.3 1,645.2 60% Power & Telecom Cables 4
Slide 27: Shareholding Pattern
Shareholding Pattern As on December 31, 2021 Outstanding shares – 3,82,68,619 Others, 13.98% Major Non-Promoter Shareholders Shareholding (%) Corporate Bodies, HDFC Trustee company 8.51 1.90% L & T Mutual Fund Trustee Ltd 4.30 DII, 18.11% Nippon Life India Trustee Ltd. 3.39 Promoter, Raiffeisen -Eur
Slide 28: Contact us
Contact us For any Investor Relations queries, please contact: Sanjaya Kunder APAR Industries Ltd Nitesh Kumar Seema Shukla Phone: +91 22 67800400 Phone: +91 98915 70250 Phone: +91 124 425 1443 Email: sr.kunder@apar.com nitesh.kumar@four-s.com seema@four-s.com Safe Harbor: This presentation may have