APAR Industries Limited · NSE:APARINDS
APAR Industries — Q2 FY19 Earnings Presentation
29 slides from APAR Industries's earnings presentation, Nov 1, 2018
Slide 1: Cover letter to stock exchanges: Investor Update
C-CNma: APAR HOusE, cORroRATE PARK, sioN TROMaAy roro. CHEMBUR, MUMBAI - 400 071 . INDIA AFIAR INDUSTRIES LTD. T F : (+91) (22) 2526 3400/ 6780 0400 : (+91)(22)25246326 E : coiponalo@apar.com url : ww.clpol.com SEC/0111 /2018 |St November, 2018 National Stock Exchange of India Ltd. BSE Ltd. ``Exchan
Slide 2: Powering Ahead! Q2 FY19 Earnings Presentation
Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q2 FY19 Earnings Presentation Corporate Presentation Apar Industries Limited Earnings Presentation | Q2 FY19 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: Q2FY19: Strong 51% growth in revenue and 23% in EBITDA
Q2FY19: Strong 51% growth in revenue and 23% in EBITDA Conductor’s revenue up 82% YoY with stronger order book (up 92% YoY) Order Book at all-time high of Rs 2,696 crore, up 92% YoY, (includes Rs 289 crore of Copper Conductors). Revenue 1,886 New orders of Rs 1,059 crore, up 45% YoY, from both d
Slide 5: India's power sector poised for growth
India’s power sector poised for growth India’s power demand is expected to grow at 6.5-6.8% CAGR in FY19-23 versus 3.8% CAGR in last five years, driven by high latent demand, rapid urbanization and the government’s thrust on rural electrification. (CRISIL Research) Government aims ‘24X7 Power for Al
Slide 6: Financial Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY19 5
Slide 7: Q2FY19: Revenues up 51% YoY, PAT up 9% YoY
Q2FY19: Revenues up 51% YoY, PAT up 9% YoY Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q2 FY19 1,886 110 (5.8%) 29 (1.5%) 51% 23% 9% Q2 FY18 1,249 89 (7.2%) 26 (2.1%) Revenue up 51% YoY on the back of growth in all segments viz. Cables, Conducto
Slide 8: H1FY19: Strong 33% YoY growth in revenues
H1FY19: Strong 33% YoY growth in revenues Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) H1 FY19 3,384 222 (6.6%) 58 (1.7%) 33% 19% 12% H1 FY18 2,554 186 (7.3%) 65 (2.6%) Revenue up 33% YoY as all segments deliver robust growth. EBITDA up 19% YoY d
Slide 9: Business Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY19 8
Slide 10: Q2FY19: Conductors revenue up 82% YoY, improved EBITDA per MT
Q2FY19: Conductors revenue up 82% YoY, improved EBITDA per MT Consolidated financials, Figures in Rs crore EBITDA EBITDA per MT EBITDA EBITDA post adj* Volume (MT) Revenue (Margin %) (Rs per MT) (post adj*) (Rs per MT) Q2FY19 899 47 (5.3%) 11,706 44 (4.9%) 10,839 40,414 82% 47% 9% 63% 21% 34% Q2FY18
Slide 11: H1FY19: Conductors deliver robust growth
H1FY19: Conductors deliver robust growth 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 FY19 1,534 12,881 83 (5.4%) 11,387 72,695 94 (6.1%) 48% 6% 24% 16% 20% 13% H1 FY18 1,036 76 (7.3%)
Slide 12: Q2FY19: Oil revenue up 25%, inflationary pressures impact EBITDA
Q2FY19: Oil revenue up 25%, inflationary pressures impact EBITDA 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 FY19 630 18 (2.8%) 1,716 14 (2.2%) 1,312 1,04,347 25% 54% 58% 62% 65% 9% Q2 FY18 5
Slide 13: H1FY19: Oils deliver strong growth in revenues
H1FY19: Oils deliver strong growth in revenues 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 FY19 1,206 53 (4.4%) 2,692 43 (3.6%) 2,160 1,98,598 20% 30% 32% 43% 45% 3% H1 FY18 1,004 76 (7.6%) 3
Slide 14: Q2FY19: Accelerated growth momentum in Cables, margin up 259 bps
Q2FY19: Accelerated growth momentum in Cables, margin up 259 bps Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q2 FY19 438 50 (11.4%) 49 (11.2%) 81% 133% 136% Q2 FY18 241 21 (8.9%) 21 (8.6%) * After adjusting open period forex Revenue up 81% YoY with stron
Slide 15: H1FY19: Cables' revenue up 53% YoY, EBITDA nearly doubles
H1FY19: Cables’ revenue up 53% YoY, EBITDA nearly doubles Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) H1 FY19 756 82 (10.9%) 79 (10.5%) 53% 97% 92% H1 FY18 495 42 (8.4%) 41 (8.3%) * After adjusting open period forex Revenue up 53% YoY to reach Rs 756 cro
Slide 16: Company Overview
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY19 15
Slide 17: Apar Industries at a glance
Apar Industries at a glance 3rd largest manufacturer of Conductors, 4th largest manufacturer of transformer oil Market Leadership in the world and largest manufacturer of domestic cable in renewable sector. Over 400 types of specialty & automotive oils; largest range of conventional & Diverse Portfo
Slide 18: Strong presence across diverse businesses
Strong presence across diverse businesses Conductors Specialty Oils Cables Auto Lubes Since 1958 Since 1969 Since 2008 Since 2007 23% market share 45% market share Acquired Uniflex in Renewed focus in auto Total Capacity: Total Capacity: 2008. Grew sales from lubes with licensing 180,000MT. Shifted
Slide 19: Strategic investments to drive future growth
Strategic investments to drive future growth Strategic investments of Rs 660+ crore since FY13 for innovative/higher value added products. Conductors - Rs 267 crore • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16, Further shifted 50,000 MT to Jharsuguda Plant (Total - 80,0
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 Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 36% EBITDA margin at 7.1% 425 412 3,297 3,336 3,297 3,736 450 367 10
Slide 22: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 36% to FY18 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: Annexure
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q2 FY19 22
Slide 24: Q2 FY19: Consolidated Profit & Loss Statement
Q2 FY19: Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2 FY19 Q2 FY18 % Chg YoY Q1 FY19 % Chg QoQ H1FY19 H1FY18 % Chg YoY Total Operating Income 1,884.7 1,247.8 51.0% 1,495.6 26.0% 3,380.2 2,672.3 26.5% Total Expenditure 1,775.8 1,159.1 53.2% 1,386.5 28.1% 3,162.2 2,488.2 27.1% Cost of R
Slide 25: Q2 FY19 Financials
Q2 FY19 Financials Key Ratios In %, Consolidated Q2 FY19 Q2 FY18 Q1 FY19 H1FY19 H1FY18 EBITDA Margin 6.0% 7.3% 7.6% 6.7% 7.4% Net Margin 1.5% 2.1% 1.9% 1.7% 2.6% Total Expenditure/ Total Net Operating Income 94.2% 92.9% 92.7% 93.6% 92.8% Raw Material Cost/ Total Net Operating Income 79.9% 76.3% 76.7
Slide 26: Q2 FY19: Consolidated Segment Analysis
Q2 FY19: Consolidated Segment Analysis Segment (Rs Cr) Q2 FY19 Q2 FY18 %YoY Q1 FY19 % QoQ H1FY19 H1FY18 % Chg YoY Revenue Conductors 898.2 494.8 81.5% 635.5 41.3% 1,533.7 1,082.6 41.7% Transformer & Specialty Oils 630.1 506.2 24.5% 576.3 9.3% 1,206.4 1,061.5 13.7% Power & Telecom Cables 437.3 242.1
Slide 27: Consolidated Balance sheet Statement as on 30th Sep, 2018
Consolidated Balance sheet Statement as on 30th Sep, 2018 Figures in Rs crore Consolidated Consolidated Sr.No Particulars As at 30 Sep, As at 31 Sr.No Particulars As at 30 Sep, As at 31 March, 2018 March, 2018 2018 2018 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property, Pl
Slide 28: Shareholding pattern
Shareholding pattern As on Sep 30, 2018 Outstanding shares – 3,82,68,619 Others, 10.25% Bodies Major Non-Promoter Shareholders Shareholding (%) Corporate, HDFC Trustee company 7.87 2.00% Reliance Capital 6.25 L & T Mutual Fund Trustee Ltd 3.81 DII, 23.31% Goldman Sachs 2.96 Promoter, 58.19% Raiffeis
Slide 29: 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: kunder@apar.com Safe Harbor: This presentation may have ce