APAR Industries Limited · NSE:APARINDS
APAR Industries — Investor Presentation (February 2017)
38 slides from APAR Industries's investor presentation, February 2017
Slide 1: Corporate Presentation February 2017
Corporate Presentation February 2017 Corporate Presentation Apar Industries Ltd. 1 AparApar Industries Limited Corporate IndustriesLimited CorporatePresentation Presentation
Slide 2: Company Overview
Company Overview Company Overview 2 Apar Industries Limited Corporate Presentation
Slide 3: Global leader in Conductors and Transformer Oils
Global leader in Conductors and Transformer Oils 4th largest transformer oil manufacturer, among top 3 conductors manufacturer Market Leadership in the world and largest cable manufacturer for cables in renewable Sector. Over 400 types of specialty & automotive oils; largest range of conventional &
Slide 4: With established presence across diverse businesses
With established 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
Slide 5: And multiple growth drivers in place
And multiple growth drivers in place Power Sector Increased Focus on Transmission & Distribution (T&D) Govt thrust on Renewable Energy • 13th Plan is estimated to involve a investment of Rs 2.6 tn which • India has a 175 gigawatt (GW) clean includes addition of ~100,000 CKM of transmission lines and
Slide 6: Capacity increased to fuel future growth
Capacity increased to fuel future growth. . . Strategic investments of over Rs 550 Cr which can manufacture the new higher value added products. • Commissioned Jharsuguda (Odisha) plant with 30,000 MT capacity in Sep’16. • Proximity to smelters, for logistical benefits. • To tap into increasing gene
Slide 7: Significant growth in margins with improved product mix
Significant growth in margins with improved product mix Strategic focus on Higher value added products like HEC, High Voltage T-Oils, Elastomeric cables etc. EBITDA* / Margin PAT / Margin 150 6.4% 6.8% 7.0% 9.8% 8.1% 8.8% 60 2.2% 2.1% 2.4% 2.8% 4.3% 3.6% 3.8% 5.8% 10.0% 5.0% 130 47 46 107 105 102 5.
Slide 8: Segmental Performance
Segmental Performance Company Overview 8 Apar Industries Limited Corporate Presentation
Slide 9: Conductors: Largest manufacturer and exporter from India
Conductors: Largest manufacturer and exporter from India • Among top 5 Conductors manufacturer in the world. Volume (In ‘000 MT) • Vertically integrated producer, full product range of ACSR, AAAC up to 1,200KV. 6% CAGR • High Efficiency Conductors (HEC) to propel future growth. 151 170 142 • Contrib
Slide 10: Conductors: Driving growth through key strategic initiatives
Conductors: Driving growth through key strategic initiatives Export market Improving Domestic market Strategically located Strong focus on exports 12th Plan ending achieving over Favorable tax jurisdiction; Closer which is expected to 95% target.13th plan to involve to port; can supply to both reviv
Slide 11: Specialty Oils: Continued leadership with a global footprint
Specialty Oils: Continued leadership with a global footprint Volume (In ‘000 KL) • 4th largest Transformer oil manufacturer. 4% CAGR • Exports of Transformer Oils and White Oils to over 95 countries. 300 327 328 337 262 Successful manufacturing and distribution tie-ups in South Africa, Australia & T
Slide 12: Auto Lubes: Strategic partnership & aggressive marketing driving growth
Auto Lubes: Strategic partnership & aggressive marketing driving growth Riding the High road with ENI • Manufacturing and license agreement with ENI S.P.A to manufacture ENI branded lubricants, positioned at upper end of the market. • Best in Class lubricants delivering great “Performance and Protec
Slide 13: Cables: On a strong profitable growth path
Cables: On a strong profitable growth path • One of the Leading Cable manufacturer in India, largest for Revenue (In Rs Cr) cables used in Renewable Sector (Wind and Solar). • Comprehensive range of Medium & Low Voltage Cables, 17% CAGR 675 573 560 584 Elastomeric Cables, Fiber Optic Cables & Specia
Slide 14: Power Sector Overview
Power Sector Overview Company Overview 14 Apar Industries Limited Corporate Presentation
Slide 15: Power sector expected to turnaround post recent govt initiatives
Power sector expected to turnaround post recent govt initiatives Power sector expected to receive investment of about $250 bn in next 5 years • With Increasing Generation capacity and healthy pipeline Installed capacity growth of projects in the construction phase, SEB’s weak financial health remain
Slide 16: UDAY- biggest policy initiative towards Ujwal Bharat
UDAY- biggest policy initiative towards Ujwal Bharat. . . • Debt Take over by State resulting in Reduction in Interest Cost • Lower cost of Power Highlights • Operational Efficiency • Enabling Quarterly Tariff Increase • Reduction of AT&C loss to 15% in 2018-19 from 32% in 2013-14. Expected • Reduct
Slide 17: Govt's focus on transmission and distribution to drive growth
Govt’s focus on transmission and distribution to drive growth End of 10th End of 11th End of 12th End of % System Type plan plan plan 13th plan Increase AC transmission Lines(In C Kms) 1,92,535 2,48,049 3,48,049 4,50,700 29% HVDC (In C Kms) 5,872 9,432 16,872 19,815 17% Total (In C Kms) 1,98,407 2,5
Slide 18: High voltage conductors & transformers to boost demand
High voltage conductors & transformers to boost demand Planned improvements in transmission sector Expected transmission lines by Govt 2,03,644 • High capacity 400kV multi-circuit/bundle 1,57,644 conductor lines. 1,06,819 • High Surge Impedance Loading (HSIL) Line. 56,731 • Increase in current High
Slide 19: Financial Performance
Financial Performance Company Overview 19 Apar Industries Limited Corporate Presentation
Slide 20: Maintained strong revenue growth over the years
Maintained strong revenue growth over the years Achieved 11% Revenue CAGR driven by strong growth in Cables and Conductors business. . Consolidated Revenue Revenue Geographic Break-up* Exports grew at 16% CAGR 11% CAGR 5,122 5,082 3,251 3,062 3,297 3,336 4,651 4,632 2,500 3,595 3,533 2,219 3,033 Exp
Slide 21: Delivers significant improvement in margins
Delivers significant improvement in margins Driven by strategic focus on value added products across businesses. . . Figures in Rs Cr, Consolidated Financials EBITDA / Margin PAT / Margin 470 7.2% 6.0% 6.6% 6.5% 4.9% 7.2% 9.2% 10.0% 200 3.2% 2.1% 2.4% 1.9% 2.4% 3.9% 5.0% 420 180 1.0% 367 370 309 326
Slide 22: And Strong Balance Sheet
And Strong Balance Sheet Stringent credit control systems in place. . . FY11 FY12 FY13 FY14 FY15 FY16 Debtor Days 83 88 64 87 90 78 Inventory Days 59 69 59 80 67 56 Payables Days 85 85 116 108 112 101 Low debt /equity ratio. . . FY11 FY12 FY13 FY14 FY15 FY16 Current Ratio 1.1 1.2 1.1 1.2 1.2 1.2 D/E
Slide 23: Annexure
Annexure Company Overview 23 Apar Industries Limited Corporate Presentation
Slide 24: Key Milestones
Key Milestones Set up Conductors Plant in Jharsuguda & Oils plant in Sharjah Conductors Installed 2 E- plant set up Beam at Athola Entered into Acquired Global Auto Lubes Uniflex Cables Presence Accelerators segment via to diversify in 100 license into Cables Countries agreement manufacture Setup Si
Slide 25: Wide and deep product mix
Wide and deep product mix Conductors Specialty Oils Cables Auto Lubes High Efficiency Transformer Oils For Power TACSR Auto Lubes insulation & cooling Power Cables Diesel Engine Oils for STACIR Rubber Processing Oil: Elastomeric and Flexible Commercial and GZTACSR For Tyre & Polymer Ind Cables Agric
Slide 26: Huge global presence driving exports
Huge global presence driving exports Presence in 100 countries resulting in 16% 5yr CAGR in exports 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 over 10
Slide 27: Strategically located manufacturing units a big strength
Strategically located manufacturing units a big strength Proximity to major ports gives strategic advantage for exports Tax benefits for Athola (in Union Orissa Territory) Conductors Plant Gujarat Maharashtra Manufacturing Units. Rabale (Maharashtra), Silvassa & Athola (Union Territory of Dadra and
Slide 28: Strong clientele with long lasting relationships
Strong clientele with long lasting relationships 28 AparApar Industries Limited Corporate IndustriesLimited CorporatePresentation Presentation
Slide 29: Annexure: Financials
Annexure: Financials Company Overview 29 Apar Industries Limited Corporate Presentation
Slide 30: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement (In Rs Cr) FY11 FY12 FY13 FY14 FY15 FY16 Liabilities Total Shareholder's Funds 351 523 627 696 730 859 Minority Interest 1 1 2 2 1 2 Non-current Liabilities: - (a) Long-term borrowings 15 35 33 70 95 84 (b) Deferred tax liabilities (net) 9 13 10 23 27 31 (c) Othe
Slide 31: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (In Rs Cr) FY11 FY12 FY13 FY14 FY15 FY16 Revenue from operations (net) 3,033 3,595 4,651 4,632 5,122 5,080 Other income 0 0 2 4 2 3 TOTAL REVENUE (i) 3,033 3,595 4,653 4,636 5,124 5,083 EXPENSES: Cost of raw materials and components 2,370 2,945 3,645 3,606 4,112
Slide 32: Q3FY17: Standalone Profit & Loss Statement
Q3FY17: Standalone Profit & Loss Statement Particulars (Rs Cr) Q3 FY17 Q3 FY16 % Chg YoY Q2 FY17 % Chg QoQ 9M FY17 9M FY16 % Chg YoY Gross sales 1,240.4 1,281.5 -3.2% 1,370.0 -9.5% 3,799.2 3,992.9 -4.9% Other Operating Income 6.6 6.5 1.5% 11.7 -43.6% 23.1 23.4 -1.3% Total Operating Income 1,247.0 1,
Slide 33: Q3FY17 Key Ratios - Standalone
Q3FY17 Key Ratios - Standalone Key Ratios (%) Q3 FY17 Q3 FY16 Q2 FY17 9M FY17 9M FY16 EBITDA Margin 9.6% 7.4% 8.3% 9.4% 7.3% Net Margin 3.8% 2.4% 3.6% 3.9% 2.1% Total Expenditure/ Total Net Operating Income 90.6% 92.9% 92.1% 90.9% 92.8% Raw Material Cost/ Total Net Operating Income 72.7% 74.4% 76.8%
Slide 34: Q3 FY17: Standalone Segment Analysis
Q3 FY17: Standalone Segment Analysis Segment (Rs Cr) Q3 FY17 Q3 FY16 %YoY Q2 FY17 % QoQ 9M FY17 9M FY16 %YoY Revenue Conductors 559.1 583.1 -4.1% 720.8 -22.4% 1,825.0 1,985.8 -8.1% Transformer & Specialty Oils 457.7 478.9 -4.4% 444.8 2.9% 1,354.9 1,489.6 -9.0% Power & Telecom Cables 225.5 222.5 1.3%
Slide 35: Balance Sheet Statement –Standalone
Balance Sheet Statement –Standalone Figures in Rs Cr As at As at Particulars 30.09.2016 31.03.2016 A ASSETS 1 Non-Current assets (a) Property, Plant and Equipment 407.9 384.8 (b) Capital work-in-progress 36.9 20.8 (c) Goodwill 8.7 10.1 (d) Other Intangible assets 2.6 2.7 (e) Financial Assets (i) Inv
Slide 36: Balance Sheet Statement –Standalone Continued
Balance Sheet Statement –Standalone Continued Figures in Rs Cr As at As at Particulars 30.09.2016 31.03.2016 B EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share capital 38.5 38.5 (b) Other Equity 839.8 722.3 2 LIABILITIES Non-Current liabilities (a) Financial Liabilities (i) Borrowings 41.8 60.3 (b)
Slide 37: Shareholding pattern
Shareholding pattern As on Dec 31, 2016 Outstanding shares – 3,84,96,769 Major Non-Promoter Shareholders Shareholding (%) Others, 9.2% Templeton Strategic Emerging Markets Funds 9.45 Bodies Corporate, HDFC Trustee company 8.01 12.3% Reliance Capital 3.44 DII, 12.6% Promoter, Goldman Sachs 2.94 58.2%
Slide 38: 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 This presentation may have
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