The 8 reports from 3 analysts offering long term price targets
for Apar Industries Ltd. have an average target of 477.67. The consensus estimate
represents an upside of 0.56%
from the last price of 475.00.
Apar Industries (Apar) reported 7% YoY decline in consolidated revenue at Rs17.1bn, 5% above our estimate. Exports sales grew 6% YoY to Rs6.9bn, forming 40% of total revenue (vs. 35% YoY). However, domestic sales were soft due to delayed tendering amid lack of central and state funding, which is likely to revive soon. Conductor sales fell 13%/15% YoY in volume/value terms while Cable sales declined 18% YoY in value terms. Oil revenue rose 18% YoY each in volume/value terms. EBITDA/MT of Conductor segment rose 5% YoY to Rs13,022 while EBITDA/KL of Oil segment jumped 165% YoY to Rs8,158. However, EBITDA margin of Cables segment contracted by 220bps YoY to 8.4%. Consolidated EBITDA was up 32% YoY at Rs1.6bn, leading to...
in transformer oil segment. De-growth in consolidated revenue by 6.7% YoY impacted due to supply chain challenges amidst pandemic in the domestic market (down, 6% YoY) while exports market (up, 7% YoY) is gradually returning to normalcy. Lower RM cost and cost rationalisation measures led to boost in profitability. Conductors segment declined by 28% YoY owing to supply side constraint, subdued demand for conventional conductors and HEC. Specialty Oil revenue grew by 17.7% YoY driven by 30% growth in exports across all its product range. High competitive pricing and subdued...
Profitability rebounds; Business recovery to be gradual BUY Apar Industries (Apar) reported 19% YoY decline in consolidated revenue at Rs14.8bn, 3% below our estimate. Domestic sales fell 29% YoY to Rs8.6bn (58% of total sales) due to lower execution at domestic project sites, slow revival of railways and deferment of tenders due to lack of budgetary support from central and state governments. Exports revenue remained stable at Rs6.2bn but its share in total revenue increased to 42% vs. 34% YoY. Conductor sales fell 22%/30% YoY in volume/value terms while cable sales declined 31% YoY in value terms. Oil revenue rose 16%/5% YoY in volume/value terms. EBITDA/MT of conductors rose 51% YoY to...
Gradual recovery likely; Value-added products a key focus Apar Industries (Apar) reported 35% YoY decline in consolidated revenue at Rs12.9bn due to COVID-19 led lockdown, lower commodity prices and high base effect (sales in 1QFY20 had grown by 33% YoY). The topline was 9% below our estimate. With lockdown in April and lower scale of operations in May & June, domestic revenue declined by 52% YoY while exports grew by 11% YoY. Segment-wise decline in sales was as follows: Conductors (24% volume & 31% value), Oil (42% volume & 43% value) and Cables (37% value). EBITDA/MT of Conductors fell by 49% YoY to Rs6,185, EBITDA/KL of Oil fell by 81% YoY to Rs732 while EBITDA margin of Cables contracted by...
During the quarter, the Company received new orders worth ~Rs.3.2bn in Conductor segment. New order inflows were significantly lower yoy with delays in awarding new tender due to...
Results in line; Value-added products ramp-up key focus Apar Industries (Apar) reported 26% YoY decline in consolidated revenue at Rs18.1bn on a high base (4QFY19 had seen 39% growth) and due to lower execution amid COVID-19 lockdown. Revenue was broadly in line with our estimate. Domestic market slowdown, credit tightness and COVID-19 induced lockdown led to decline in sales of Conductors (42% volume & 37% value), Oil (16% volume & 22% value) and Cables (12% value). EBITDA/MT of Conductors jumped 68% YoY to Rs11,206 (HEC/copper conductors at 15%/13% of sales), EBITDA/KL of Oil fell 40% YoY to Rs2,030 due to higher provision for receivables while EBITDA margin of Cables fell 420bps YoY to 9.5%....
FY20 with weakness across its segments. While the Conductor segmentreported37%declineinrevenues,OilandCablessegment reported degrowth of ~22% and ~12% respectively. Also, the companywasunabletocarryinspectionsbeforedispatchduringlast fewdaysofMar'20whichimpacteddeliveries/revenuebooking. Operating margin on consolidated basis improved 35bps yoy (to 5.8%)largelydrivenbythesharpimprovementinprofitabilityinthe Conductorsegment.IncreasingshareofhighmarginHighEfficiency...
We recently met Mr. Kushal Desai, CMD-Apar Industries (APAR), to gain Change in Estimates | Target | Reco insights on company's growth strategy and industry outlook. We came out positive and believe that recent price correction (~46% in 6 months) factors...
Apar Industries (Apar) reported 13% YoY decline in consolidated revenue to Rs18.4bn on a high base (3QFY19 sales grew by 41% YoY), 10% below our estimate. Domestic market slowdown, credit tightness at utilities/EPCs and payment delays led to decline in sales of Conductors (23% volume & 18% value), Oil (12% volume & 19% value) and Cables (7% value). However, favourable revenue mix, led by increased share of high margin products, led to better profitability. EBITDA/MT of Conductors jumped 50% YoY to Rs12,409 (HEC conductor at 22% of sales), EBITDA/KL of Oil rose 8% QoQ to Rs3,082 (auto lube & industrial oil at 24% of sales) while EBITDA margin of Cables rose 80bps YoY to 10.6%. Gross margin was up 420bps YoY and...
Performance Impacted by Lower Domestic Demand: Apar s revenues had a flattish performance with a degrowth of 3.0 percent YoY due to extended monsoon in domestic market, credit tightness and slowdown in the relevant sectors.
Apar Industries (Apar) reported 3% YoY decline in 2QFY20 revenue to Rs18.2bn, 14%/16% below our/consensus estimate. Lower growth was due to extended monsoon, credit crunch and delayed government payments. Conductor revenue was flat YoY at Rs9.5bn while EBITDA/MT declined 28% YoY to Rs7,789 due to low margin orders and delay in dispatches to customers having payment issues. Oil segment revenue fell 9% YoY to Rs5.7bn owing to subdued demand in domestic market. Volume declined 6% YoY to 98,156KL. EBITDA/KL jumped 117% YoY to Rs2,846, on a low base, owing to stable base oil prices and rupee. Cable segment sales fell 16% YoY to Rs3.7bn, on a high base, while EBITDA margin was sustained at 11.2%. Consolidated...
Apar Industries (Apar) reported 3% YoY decline in 2QFY20 revenue to Rs18.2bn, 14%/16% below our/consensus estimate. Lower growth was due to extended monsoon, credit crunch and delayed government payments. Conductor revenue was flat YoY at Rs9.5bn while EBITDA/MT declined 28% YoY to Rs7,789 due to low margin orders and delay in dispatches to customers having payment issues. Oil segment revenue fell 9% YoY to Rs5.7bn owing to subdued demand in domestic market. Volume declined 6% YoY to 98,156KL. EBITDA/KL jumped 117% YoY to Rs2,846, on a low base, owing to stable base oil prices and rupee. Cable segment sales fell 16% YoY to Rs3.7bn, on a high base, while EBITDA margin was sustained at 11.2%. Consolidated...
Robust performance led by Cables; But caution ahead BUY Apar Industries (Apar) has reported 33% YoY jump in 1QFY20 revenue to Rs19.8bn, 10% above our estimate. Conductor revenue surged 61% YoY to Rs10.2bn, aided by 29% YoY volume growth and rising share of HEC and Copper conductors. EBITDA/MT was sustained at a healthy level of Rs12,137. Oil segment revenue grew by 7% YoY to Rs6.2bn. While volume grew by 13% YoY (led by exports) the realisation was lower due to adverse revenue mix. EBITDA/KL grew by 26% YoY to Rs3,907 (on a lower base), owing to stable base oil prices and rupee. Cable segment has sustained its strong growth trajectory with 24% YoY growth to Rs3.9bn while EBITDA margin is...
Apar Industries (Apar) reported strong set of numbers for 1QFY20 with Change in Estimates | Target | Reco revenue/PAT up 33%/42% YoY to Rs20bn/Rs412 mn (PLe Rs17bn/Rs334 mn). The top-line growth was led by growth across segments that is...
Strong Revenue Growth but Margins Decline: Apar revenues have shown a growth of 39.4% with strong growth across segments. The topline growth was driven by growth in cables segment (52%), Conductors (48.7%) and Oil (18%).
Cable Segment Outperforms; Conductor And Oil Margin Likely To Revive BUY Apar Industries (Apar) reported 39% YoY jump in 4QFY19 revenues to Rs24.6bn, 16% above our estimate. Conductor revenues surged 49% YoY to highest ever quarterly sales of Rs13.3bn, aided by 12% volume growth. EBITDA/MT was up 17% YoY at Rs6,680 led by a rising share of copper conductors. Oil segment revenues rose 31% YoY to Rs7bn (27% YoY volume growth) led by a higher share of auto lubes and industrials oils. EBITDA/KL was adversely impacted (down 36% YoY at Rs3,391) owing to high-cost inventory of base oil. Cable segment posted highest-ever quarterly sales (at Rs5.1bn, up 51% YoY) and EBITDA margin (at 13.7%, up 330bps YoY) led by improved product mix....
Apar Industries (Apar) reported 39% YoY growth in Q4FY19 revenues to Rs25bn, higher than our estimate. The top-line growth was driven by 51%YoY rise in Power/Telecom cables segment sales to Rs5.1 bn, Conductors revenues grew 49%YoY to Rs13.3bn while Transformer & specialty oil segment's sales rose 31% YoY to Rs7bn. However, EBITDA margin fell 163 bps YoY to 5.5% YoY owing to volatility in raw material prices and execution of lower-margin order. PAT for the quarter grew 9% YoY to Rs0.4 bn, in-line with our estimates, largely due to margin contraction, lower interest expense,...
Strong Revenue Growth but Margins Impacted: Apar's revenues have shown a growth of 41% with strong growth across segments. The conductors segment grew the most at 65% and is currently having the highest order book of Rs.32260 Mn.
Refer to important disclosures at the end of this report Strong volume show offset by volatile raw material prices; TP reduced Apar Industries' (Apar) Q3FY19 earnings were below our estimates. While revenues rose 41.4% yoy to Rs21.2bn, PAT declined 12.2% yoy to Rs347.2mn due to increase in raw material prices, interest costs, stiff competition and INR depreciation. Its Conductors segment clocked strong revenue growth of 64.8% yoy to Rs10.5bn, driven by a 45.3% yoy surge in realizations and 13.4% rise in volumes. Apar's Cables and...
Dominant player across business lines at global scale Apar is 3rd largest manufacturer of Conductors and 4th largest manufacturer of transformer oil in the world. In conductors business, its market share stands at 23% in domestic market with installed capacities of 1.8lac MT. It is the largest manufacturer and exporter of conductors from India. In case of specialty oils, its market share stood at 45% with 5.4lac KL installed capacity (including 1lac KL capacity overseas at Sharjah). In FY'18,...
