Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (October 2023)
41 slides from Apar Industries's investor presentation, October 2023
Slide 1: Exchange filing cover letter for Corporate Presentation October 2023
SEC/2910/2023 By E-Filing October 29, 2023 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Corporate Relations Department, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai – 400 051. Mumbai - 400 001. Scrip Symbol : APARIND
Slide 2: APAR Industries Limited Corporate Presentation October 2023
APAR INDUSTRIES LIMITED Corporate Presentation October 2023 1 Corporate Presentation – October 2023
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by APAR Industries Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows t
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 #1 One of the leading One of the key players India’s largest player in terms India’s largest private sector exporter of conductors in the domestic of sales of conductors in FY23 manufacturer of specialty oils in and cables from India renewable cables te
Slide 6: Strategically Located State-of-the-Art Manufacturing Facilities
APAR’s Strategically Located State-of-the-Art Manufacturing Facilities Cables Gujarat Umbergaon Conductors Jharsuguda Odisha Wires & Cables Maharashtra Khatalwada Conductors Lapanga Polymers Conductors Umbergaon Rabale Silvassa Athola Oils & Lubricants Conductors & Oils Speciality oil UAE Sharjah 5
Slide 7: Extensive global presence driving exports
Extensive global presence driving exports Prominent presence with established Utilities, EPCs & channel partners in 1 USA Canada Mexico Colombia Brazil Peru Chile Spain France Great Britain Romania Norway Sweden Finland Poland Italy Thailand Bangladesh Australia GCC Middle East (UAE) Iraq Kenya Ethi
Slide 8: Conductors – Largest Player in India
1 Conductors – Largest Player in India Conventional HTLS Railway Specialty Alloy OPGW Conductors Conductors Conductors Rods ACS Wire CTC/PICC Turnkey BUSBAR Solutions Key Highlights: Key Products and Facilities: FY23 revenue of INR 7,013.05 crore o Largest Player in India in terms of sales of conduc
Slide 9: Specialty Oils & Lubricants – India's Largest Private Sector Manufacturer
Specialty Oils & Lubricants – India’s Largest Private Sector Manufacturer 1 Transformer oil White oils Industrial & process oils Industrial & auto lubricants Petroleum jelly POWEROIL TO NE premium Key Highlights: Key Products and Facilities: FY23 revenue of INR 4,656. 69 crore o India's largest priv
Slide 10: Cables – One of the Key Players in Domestic Renewable Segment
Cables – One of the Key Players in Domestic Renewable Segment Power cables House wire & cable Elastomeric cables E-beam irradiated cables OFC Speciality hybrid cables Key Highlights: Key Products and Facilities: FY23 revenue of INR 3,263.45 crore o One of the key supplier to Vande Bharat Trains o Ra
Slide 11: Introducing Telecom Solutions – Our newest vertical
Introducing Telecom Solutions – Our newest vertical Diversified Telecom Solutions as a separate a business vertical to bring more focus and garner maximum growth potential: Product Portfolio Solutions Provider Focus Areas o Introduced range of Hybrid Cables o OFC solutions o Converged networks o The
Slide 12: Growth Drivers
GROWTH DRIVERS
Slide 13: Globally, we see growth opportunities in
Globally, we see growth opportunities in Addition of Transmission Infrastructure Renewable energy Expansion Development Wind, Solar & Nuclear Public Transportation Manufacturing, Telecom (incl Mobility) China + 1 12 Corporate Presentation – October 2023
Slide 14: Global energy mix projected to shift towards electricity & hydrogen
The global energy mix is projected to shift towards electricity & hydrogen Share of electricity and hydrogen in final consumption may grow to ~40% under the APS, ~55% under the NZE Share of global total final consumption by selected fuel and scenario, 2022-2050 1% 1% 1% 4% 1% 11% 100% • Total final
Slide 15: Global investments in solar, wind and nuclear power to see robust growth
Global investments in solar, wind and nuclear power to see robust growth Global annual investment in power generation and share in Capacity additions in renewable power expected to total investments by select technologies post robust growth (USD billion) 2020-2030 CAGR: 7-8% (Giga watts) 500 26-29%
Slide 16: Addition of Renewable energy
Addition of Renewable energy SECTOR OPPORTUNITY APAR ADVANTAGE o Solar Installed capacity is expected to grow by 200 GW o One of the key players in the domestic renewable cables & Wind installed capacity is expected to grow by 55 GW segment during 2024 to 2030 in India o Our range meets required glo
Slide 17: Renewables – Opportunity for all business verticals
Renewables – Opportunity for all business verticals Renewable Power Generation Power Transmission (Sub Station/Grid) Power Distribution String Cables, Low Voltage Cables, Nacelle Wiring, Transformer Oil, CTC Conductors PICC Conductors, T&D Traditional Application based Cables and Wires, APAR Torsion
Slide 18: Public transportation (incl. Mobility)
Public transportation (incl. Mobility) SECTOR OPPORTUNITY APAR ADVANTAGE o Infrastructure investments in Indian railways, Metros and o Supply of locomotive coaches, forward integration into High-speed rail to grow exponentially harness. One of the key suppliers of cables for Vande Bharat trains o On
Slide 19: Manufacturing Infrastructure
Infrastructure growth, Manufacturing, China+1 SECTOR OPPORTUNITY APAR ADVANTAGE o Governments are allocating investments in building o Lubricants for off road equipment for infrastructure Infrastructure extensive road networks for freight transportation, ports, development which includes, cranes, ro
Slide 20: Transmission expansion
Transmission expansion SECTOR OPPORTUNITY APAR ADVANTAGE o 80,000 ckm of transmission lines added and 350,000 o Distributed sites for renewable energy requires MVA of transformation capacity added in last 5 years in application of Conductors, Cables & transformer oils in India renewable generation s
Slide 21: Telecom
Telecom SECTOR OPPORTUNITY APAR ADVANTAGE o Digital transformation evolving faster o Telecom solutions provider for hybrid copper and fibre cables o The average data traffic per smartphone is projected to grow from 25 GB per month in 2022 to around 54 GB per month in 2028 o 9.8 billion SIM connectio
Slide 22: Financials
FINANCIALS
Slide 23: Financial performance over the years
Financial performance over the years Revenue from operations (₹ crores) EPS (₹) Export Mix (%) Export Domestic 14,352.15 6,994.20 7,357.95 5,791.50 9,316.57 7,698.99 6,388.02 2,602.26 3,785.76 3,525.07 3,933.56 3,758.64 FY21 FY22 FY23 H1 FY24 ** FY21 FY22 FY23 H1 FY24 EBITDA Post forex * (₹ crore) R
Slide 24: Financial position over the years
Financial position over the years Fixed Assets (Net block) (₹ crores) Capital Expenditure (₹ crores) Net Fixed asset turnover 1,159.49 247.83 1,049.79 13.67 13.24 906.62 919.73 10.13 152.62 130.03 7.05 55.81 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 Closing Working Capital
Slide 25: Segmental performance: Conductors
Segmental performance: Conductors Volume (MT) Revenue (₹ crores) Product Mix (₹ crores) 1,60,131.10 1,28,462.24 7,013.05 1,07,356.95 99,638.98 4,200.43 3,717.48 2,908.03 33.29% 49.01% 44.06% 42.39% FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 Export Mix EBITDA Trend PAT Trend Export Domestic Export
Slide 26: Segmental performance: Speciality Oils & Lubricants
Segmental performance: Speciality Oils & Lubricants Volume (KL) Revenue (Rs crores) Export Mix Export Domestic Export Mix 3,000.00 60.00% 4,61,589.00 4,86,582.00 4,656.69 2,500.00 45.04% 50.00% 3,99,214.00 3,544.19 41.18% 48.18% 2,000.00 40.00% 2,64,442.18 2,363.83 2,396.67 39.15% 1,500.00 30.00% 1,
Slide 27: Segmental performance: Cables
Segmental performance: Cables Revenue (Rs crores) Export Mix 3,263.45 Export Domestic Export Mix 1,800.00 60.00% 51.73% 1,600.00 1,993.74 1,849.01 1,400.00 51.50% 50.00% 1,200.00 40.00% 1,269.51 1,000.00 32.47% 30.00% 800.00 600.00 20.00% 20.03% 400.00 10.00% 200.00 51% - 0.00% FY21 FY22 FY23 H1 FY2
Slide 28: Customer Mix and Quality of Receivables for FY23
Customer Mix and Quality of Receivables for FY23 Customer mix profile – FY 23 Quality of receivables Particulars Range Particulars % of Total Exports 48% - 50% Secured under various means 52.7% Industries/Corporate 11%-14% Government Transmission and sector Transmission companies 11%-14% 19.5% speci
Slide 29: ESG
ESG
Slide 30: APAR's focus on sustainability
APAR’s focus on sustainability As per CRISIL Sustainability Yearbook, 2022: RANKED 3RD AMONG INDUSTRIAL SECTOR RELEASED THREE ESG REPORTS FY 2020-21 FY 2021-22 FY 2022-23 29 Corporate Presentation – October 2023
Slide 31: Major milestones
Major milestones .. TCFD Report ESG rating by CRISIL 3rd party certification CDP disclosure We prepared our first TCFD (Task force on APAR’s name has found a place in the CRISIL GHG emissions (Scope-1 and Scope-2) and We disclose our climate related emissions to CDP Climate related Financial Disclos
Slide 32: CRISIL rating
CRISIL rating o CRISIL had started ESG rating of top listed Indian companies since 2021. First such rating was done last year, and the report was released in June 2021. o 2nd such rating was done in 2022 for 586 top Indian companies, and report was released on 19th May 2022 o APAR’s name has found a
Slide 33: Thank You
Thank You
Slide 34: Annexures
ANNEXURES
Slide 35: Mission, Vision and Values
Mission, Vision and Values Our Mission (Why we exist): Our Values: To design & manufacture Building Blocks for Energy Infrastructure, Transportation & Telecommunication Sectors that contribute meaningfully to make this world a more energy efficient, environmentally sustainable and safer place. A P A
Slide 36: What has played well for us
What has played well for us Premiumisation o Shift from conventional conductors to High efficiency conductors. Premium products in Indian market and standard products in premium market leading to optimized margins o EPC turnkey solutions for reconductoring High transmission low sag conductors o Impr
Slide 37: Conductor Business – Product Features
Conductor Business – Product Features Exports mix in total conductor division – 50.7% in FY 23 Premium products o Technology & know-how involved in product and design, acting as a barrier to entry for competition o Special stringing mechanism with sophisticated equipment to protect the carbon compos
Slide 38: Channel presence in our Light Duty Cable business
Channel presence in our Light Duty Cable business Particulars September 2023 Distributor presence 223 Retail count presence 3,371 Active State presence 18 Product awareness initiatives for H1 FY23 Demos 31,616 Electrician Meets 2,984 37 Corporate Presentation – October 2023
Slide 39: Consolidated: Cash Flows (Rs crores)
Consolidated: Cash Flows (Rs crores) Particulars FY 2021 FY 2022 FY 2023 H1 FY2024 Profit before Tax 208.27 341.88 854.58 500.46 Non-cash adjustments / other adjustments 188.46 206.71 339.04 181.61 Movement in Working capital (73.21) (305.19) (495.28) (442.50) Cash flows from operating activities 32
Slide 40: Risk Management framework
Risk Management framework Customer / Credit Risk Management: o Structured process of evaluating customer & end customer background. o Defined practices for setting up of credit limits. o Process for securing credit thru various means. o In-house business-legal teams within the divisions to understan
Slide 41: Environment: Carbon Footprint
Environment: Carbon Footprint Our organisational boundary covers all our manufacturing Business wise GHG emission in FY 2022-23 plants, offices, go-downs, and all such emission sources under our operational control. Our manufacturing plants in India Cable Gujarat : Khatalwada & Umbergam Conductor 34
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