Apar Industries Limited · NSE:APARINDS
Apar Industries — Q4 FY2019 Earnings Presentation
29 slides from Apar Industries's earnings presentation, May 29, 2019
Slide 1: Cover letter to stock exchanges: Investor Update
CORPORAIE OFFICE : APAR HOUSE, CORPORATE PARK, V. N. PURAV MARG, CHEMBUR MUMBAl -400 071. INDIA AFAR INDUSTRIES LTD. T : (+91)(22}25263400/67800400 F : (+91) (22)25246326 E : corporate@apar.com url : www.apar.com SEC/2905/2019 29th May, 2019 National Stock Exchange of India Ltcio BSE Ltd. "Exchange
Slide 2: Powering Ahead! Q4 FY19 Earnings Presentation
Powering Ahead! Q4 & FY17 Earnings Apar Industries Ltd. Presentation Q4 FY19 Earnings Presentation Corporate Presentation Apar Industries Limited Earnings Presentation | Q4 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: Key highlights: FY19
Key highlights: FY19 Revenue & EBITDA at all-time highs led by higher-value products Conductors - Revenue up 53% YoY with stronger order book (up 150% YoY) Mar’19 order book at Rs 3,020 crore. New orders inflow in FY2018-19 of Rs 5,454 crore, up 134% YoY, New product copper conductors for Railwa
Slide 5: Indian power sector achieves progress in electricity access in FY19
Indian power sector achieves progress in electricity access in FY19 India achieves electrification access targets in FY19: Government aims ‘24X7’ Power for All. By April 28, 2018, 100% village electrification was achieved under Deen Dayal Upadhyaya Gram Jyoti Yojana. Under Saubhagya scheme for house
Slide 6: Table of Contents: Financial Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY19 5
Slide 7: FY19: 37% YoY growth in revenues & 15% YoY growth in EBITDA
FY19: 37% YoY growth in revenues & 15% YoY growth in EBITDA Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) FY19 7,971 475 (6.0%) 136 (1.7%) 37% 15% 6% FY18 5,823 412 (7.1%) 145 (2.5%) Revenue up 37% YoY with robust growth in all segments – Conducto
Slide 8: Q4 FY19: Profitable growth, revenue up 39% YoY, PAT up 9% YoY
Q4 FY19: Profitable growth, revenue up 39% YoY, PAT up 9% YoY Consolidated financials, Figures in Rs crore Consolidated Revenue EBITDA (Margin %) PAT (Margin %) Q4 FY19 2,466 137 (5.6%) 44 (1.8%) 39% 8% 9% Q4 FY18 1,769 127 (7.2%) 40 (2.3%) Revenue up 39% YoY driven by strong growth in all segments
Slide 9: Table of Contents: Business Performance
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY19 8
Slide 10: FY19: Conductors deliver strong 53% growth driven by new products
FY19: Conductors deliver strong 53% growth driven by new products 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) FY19 3,915 9,387 164 (4.2%) 8,960 1,82,977 172 (4.4%) 53% 10% 17% 6% 26% 14%
Slide 11: Q4FY19: Conductors revenue up 49% YoY, EBITDA per MT up 17%
Q4FY19: Conductors revenue up 49%YoY, EBITDA per MT (post adj*) up 17%YoY 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) Q4FY19 1,329 41 (3.1%) 6,559 42 (3.2%) 6,680 63,048 49% 4% 14% 30% 17
Slide 12: FY19: Oils revenue up 22% YoY, EBITDA impacted by base oil volatility
FY19: Oils revenue up 22% YoY, EBITDA impacted due to base oil volatility Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) FY19 2,630 134 (5.1%) 3,116 129 (4.9%) 2,998 4,29,989 22% 25% 32% 25% 32% 11
Slide 13: Q4FY19: Oils revenue up 18% YoY
Q4FY19: Oils revenue up 18% YoY Consolidated financials, Figures in Rs crore EBITDA EBITDA EBITDA EBITDA post Revenue Volume (KL) (Margin %) (Rs per KL) (post adj*) adj* (Rs per KL) Q4 FY19 696 36 (5.2%) 3,111 39 (5.6%) 3,391 1,15,625 18% 34% 49% 18% 36% 27% Q4 FY18 591 55 (9.3%) 6,042 48 (8.1%) 5,2
Slide 14: FY19: Revenue from Cables up 51% YoY, EBITDA up 78% YoY
FY19: Revenue from Cables up 51% YoY, EBITDA up 78% YoY Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) FY19 1,684 192 (11.4%) 190 (11.3%) 51% 78% 78% FY18 1,116 108 (9.7%) 107 (9.6%) * After adjusting open period forex Record-high volumes achieved in the se
Slide 15: Q4FY19: Cables continue accelerated growth, EBITDA doubles
Q4FY19: Cables continue accelerated growth, EBITDA doubles Consolidated financials, Figures in Rs crore Revenue EBITDA (Margin %) EBITDA (post adj*) Q4 FY19 508 69 (13.7%) 70 (13.7%) 51% 92% 100% Q4 FY18 336 36 (10.8%) 35 (10.4%) * After adjusting open period forex Revenue up 51% YoY with strong gro
Slide 16: Table of Contents: Company Overview
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY19 15
Slide 17: Apar Industries at a glance
Apar Industries at a glance Among the largest manufacturer of Conductors, 4th largest manufacturer of transformer Market Leadership oil in the world and largest manufacturer of domestic cable in renewable sector. Over 400 types of specialty & automotive oils; largest range of conventional & Diverse
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 ~60% market share in Renewed focus in auto Total Capacity: 180,000MT. Total Capacity: 5,42,000KL. Port Upcoming Copper Transpose domesti
Slide 19: Strategic investments to drive future growth
Strategic investments to drive future growth Strategic investments of Rs 900 crore since FY13 for innovative/higher value added products. Conductors - Rs 367 crore • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16, Further shifted 50,000 MT to Jharsuguda Plant (Total - 80,00
Slide 20: Competitive strengths
Competitive strengths • Among the largest producer in Conductors and Specialty Oils 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, marke
Slide 21: Strong financial performance sustained over the years
Strong financial performance sustained over the years Increased share of new higher-value added products accelerates growth in all segments Consolidated financials, Figures in Rs crore Consolidated Revenue Exports contribution at 31% EBITDA margin at 6.0% 475 7,971 5,528 500 450 425 412 20% 18% 400
Slide 22: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries, Exports contributing 31% to FY19 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: Table of Contents: Annexure
Table of Contents Financial Performance Business Performance Company Overview Annexure Apar Industries Limited Earnings Presentation | Q4 FY19 22
Slide 24: Q4 FY19: Consolidated Profit & Loss Statement
Q4 FY19: Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4 FY19 Q4 FY18 % Chg YoY Q3 FY19 % Chg QoQ FY19 FY18 % Chg YoY Total Operating Income 2,464.6 1,767.5 39% 2,119.1 16% 7,963.9 5,938.7 34% Total Expenditure 2,329.2 1,641.7 42% 2,004.7 16% 7,496.1 5,531.2 36% Cost of Raw Materials 1,9
Slide 25: Q4 FY19 Financials: Key Ratios and Capital Employed
Q4 FY19 Financials Key Ratios In %, Consolidated Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 EBITDA Margin 5.7% 7.3% 5.5% 6.1% 7.2% Net Margin 1.8% 2.3% 1.6% 1.7% 2.5% Total Expenditure/ Total Net Operating Income 94.5% 92.9% 94.6% 94.1% 93.0% Raw Material Cost/ Total Net Operating Income 80.7% 77.2% 80.1% 79
Slide 26: Q4 FY19: Consolidated Segment Analysis
Q4 FY19: Consolidated Segment Analysis Segment (Rs Cr) Q4 FY19 Q4 FY18 %YoY Q3 FY19 % QoQ FY19 FY18 % Chg YoY Revenue Conductors 1,329.3 894.2 49% 1,052.2 26% 3,915.2 2,615.5 50% Transformer & Specialty Oils 696.3 532.3 31% 727.3 -4% 2,629.9 2,162.2 22% Power & Telecom Cables 507.9 335.9 51% 419.8 2
Slide 27: Consolidated Balance sheet Statement as on March 31, 2019
Consolidated Balance sheet Statement as on March 31, 2019 Figures in Rs crore Consolidated Consolidated Sr.No Particulars As at 31 March, As at 31 Sr.No Particulars As at 31 March, As at 31 March, 2019 March, 2018 2019 2018 A Assets B Equity And Liabilities 1 Non-Current assets 1 Equity (a) Property
Slide 28: Shareholding pattern
Shareholding pattern As on March 31, 2019 Outstanding shares – 3,82,68,619 Others, 9.75% Major Non-Promoter Shareholders Shareholding (%) Corporate HDFC Trustee company 8.99 Bodies, 1.87% Reliance Capital 6.37 L & T Mutual Fund Trustee Ltd 6.27 DII, 23.96% Goldman Sachs 2.64 Promoter, 58.55% Raiffei
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