APAR Industries Limited · NSE:APARINDS
APAR Industries — Investor Presentation (May 2023)
68 slides from APAR Industries's investor presentation, May 8, 2023
Slide 1: Exchange filing cover letter for corporate presentation
SEC/0805/2023 May 08, 2023 National Stock Exchange of India Ltd. BSE Ltd. “Exchange Plaza”, Corporate Relationship Department, C-1, Block G, 27th Floor, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai – 400 051. Mumbai - 400 001. Scrip Symbol : APARINDS Scrip
Slide 2: Corporate Presentation May 2023
March 2023 CORPORATE PRESENTATION May 2023
Slide 3: Table of contents
Table of contents 04 COMPANY OVERVIEW 44 FINANCIAL OVERVIEW 56 ANNEXURES 65 SHAREHOLDING PATTERN
Slide 4: Safe harbour
Safe harbour 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 outlook and growth prospects. The actual results may differ materially from these forward-looking statements due to se
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: About APAR
About APAR o We are a technology-driven, customer-focused company that delivers – innovative, cost-effective, quality products & services o We believe that with an innovation-first mindset, we can find impactful solutions for our customers o Trusted by major Power Generation, Transmission, Distribut
Slide 7: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today 14,352 #1 3rd #1 Largest global aluminium & Largest global manufacturer of Cables manufacturer for Cr FY23 Consolidated Revenue, alloy conductors’ manufacturer Transformer oils renewables in India 5 year CAGR at 19.3% Leveraging global network Leading the
Slide 8: Our catalyst for innovation
Our catalyst for innovation To design & manufacture Building Blocks for Energy Infrastructure, Transportation & Telecommunication Sectors that contribute MISSION meaningfully to make this world a more energy efficient, environmentally sustainable and safer place To be a global leader in the energy i
Slide 9: Our 65 years of legacy (1/2)
Our 65 years of legacy (1/2) Company incorporated Greenfield expansion to meet Diversification into State-of-the-art R&D unit with conductor business growing oils demand auto lubes segment setup at Rabale (setup Rabale oils plant) (license agreement with ENI Italy) (global presence in 100+ countries
Slide 10: Our 65 years of legacy (2/2)
Our 65 years of legacy (2/2) Greenfield expansion Commissioning of Sharjah plant, New APAR logo! Signed Sonu Sood as Achieved record high to meet growing conductors demand Signed agreement with Hindalco (Together we fought through covid-19) Brand Ambassador turnover of Rs. 14,352 Cr. (conductor plan
Slide 11: Well-diversified across industries & segments
Well-diversified across industries & segments Conductors Specialty Oils o One of the largest global manufacturers o 3rd largest global manufacturer of T-oils o Pioneered turnkey solutions for reconductoring with HEC, live line o 1st globally to supply the entire range of T-oils compliant to new inst
Slide 12: APAR Group – House of Brands
APAR Group – House of Brands 11 Corporate Presentation – May 2023
Slide 13: State-of-the-Art facilities strategically located
APAR’s State-of-the-Art facilities strategically located Manufactures: Cables Gujarat Umbergaon Manufactures: Conductors Jharsuguda Odisha Manufactures: Wires & Cables Maharashtra Manufactures: Khatalwada Conductors Lapanga Manufactures: Polymers Manufactures: Umbergaon Conductors Rabale Silvassa Ma
Slide 14: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers ACCC OPGW Copper Railway conductors CTC Turnkey Solutions Strong leadership & competitive edge Strategic focus on higher-value products FY23 revenue of INR 7,013 crore, 5 years CAGR at 21.8% Adj. EBITDA* per MT at INR 44,114 in FY23 INR 433 crore
Slide 15: Transformation journey of Conductor division (1/2)
Transformation journey of Conductor division over the last decade (1/2) o Setup new conductor plant in Jharsuguda (Odisha) o Introduced a premium product line viz., o Introduced GAP-type conductors which has o Started the conductor division. APAR’s HTLS- ACCC & Turnkey project – special construction
Slide 16: Transformation journey of Conductor division (2/2)
Transformation journey of Conductor division over the last decade (2/2) o With electrification in Indian Railways, we At the end of FY 2023 introduced Copper Railway conductors as per o Business Grew to 7,013 cr. RDSO specifications o 4 plant locations o The only approved Indian manufacturer to supp
Slide 17: Growth drivers – Conductors
Growth drivers – Conductors o Completed 150+ turnkey solution projects o Delivered 1,60,131 MT of Conductors o Premium products contribution - 43% o New order inflow - 44% o Green initiatives to reduce carbon intensity in operations o All time high revenue in FY 2023 16 amounts in INR crore Corporat
Slide 18: Competitive advantage – Conductor
Competitive advantage – Conductor Exports mix in total conductor division – 50.7% 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 composite core insi
Slide 19: Specialty Oils & Lubricants – 3rd largest in Transformer Oils
Specialty Oils & Lubricants – 3rd largest in Transformer Oils globally Transformer oil White oils Industrial & process oils Industrial & auto lubricants Petroleum jelly POWEROIL TO NE premium Strong leadership & competitive edge Leading domestic player in auto lubes. INR 252 crore invested in FY16-F
Slide 20: Growth drivers – Specialty Oils & Lubricants
Growth drivers – Specialty Oils & Lubricants o 500+ Grade Oils o Total volume 4.86 lac KL of speciality oils during the year o Transformer oils volumes up 14% vs. FY22 o Industrial Oil sales up 9% vs. FY22 o Serving 140+ Countries o Launched best-in-class 99% biodegradable natural ester transformer
Slide 21: Competitive advantage – Specialty Oils & Lubricants
Competitive advantage – Specialty Oils & Lubricants Exports mix in total oil division – 44.9% o 3rd largest global player in transformer oils. o Diversified customer base and industries served viz., OEM's, Pharma, Tyres, Cosmetics, Auto Lubricants etc. o Limited organised players. o Approvals in pla
Slide 22: Cables - Largest domestic player in renewables
Cables - Largest domestic player in renewables Power cables House wire & cable Elastomeric cables E-beam irradiated cables OFC Speciality hybrid cables Strong leadership & competitive edge Strategic focus on higher-value products FY23 revenue of INR 3,263 crore, 5 years CAGR at 23.5% INR 430 crore i
Slide 23: Growth drivers – Cable Solutions
Growth drivers – Cable Solutions o 500+ range of cables o 11 certificate of compliance for US market, highest from India o Major presence in Africa, East Africa, Australia & Europe, o Increased demands from Railways, defence and non-conventional energy o Reached 3,263 crore in cables business in FY
Slide 24: Sonu Sood as the face of APAR Industries
Sonu Sood as the face of APAR Industries SONU SOOD ENDORSING OUR LIGHT DUTY CABLES RANGE o House wire o CAT 6 LAN cable o House wiring o House wire o Round Multicore o Telephone cable o Round multicore o HFFR o Round Multicore o 3 core flat cable o CCTV o Core flat cable o Round Multicore o EBXL HFF
Slide 25: Associate sponsor of Women's Premier League
Associate sponsor of Women's Premier League Pan India ads on TV & Connected TVs – Total reach of 11 million 24 Corporate Presentation – May 2023
Slide 26: Ad campaigns with Sonu Sood for cable solutions
Released 2 Ad campaigns with Sonu Sood for cable solutions business 2 TV Ad campaigns in Kerala – Total reach of 42 million 2 Digital Ad campaigns Pan India – Total reach of 29 million 25 Corporate Presentation – May 2023
Slide 27: Channel expansion in Light Duty Cable business
Channel expansion in our Light Duty Cable business As on 31st March 2022 Channel Expansion As on 31st March 2023 19 Distributor presence 120 276 Retail count presence 2395 2 Retail state presence 13 Product Awareness 6,348 Demo’s 35,353 474 Electrician Meets 3,373 26 amounts in INR crore Corporate P
Slide 28: Competitive advantage – Cable Solutions
Competitive advantage – Cable Solutions Exports mix in total cable division – 51.7% o E-beam technology for house wiring - first mover advantage and the only company using this technology giving the product a 50-year life, melt resistant and flame retardant till 105 degrees. o India’s only Cable com
Slide 29: 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: Market Dynamics Focus Areas o Connected world with near zero latency o Converged networks o Cloud shift from hyperscale to edge
Slide 30: Well-defined Risk Management framework
Well-defined Risk Management framework in existence 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
Slide 31: Focus on revenue growth and increased efficiency
Focus on revenue growth and increased efficiency Enhancing Operational Efficiency o Continue to seek to improve efficiencies, streamline capacities and asset utilization and manage capital expenditure for each of the production facilities o Implemented various initiatives to lower costs, such as pur
Slide 32: Unique capabilities
Unique capabilities Diversified business across product portfolio, market segments, Strong financial performance sustained over the years 01 customer base and geographies 04 Well positioned to capture industry trends related growth Robust in-house technology, innovation and R&D capabilities 02 both
Slide 33: Organisational structure – Senior leadership
Organisational structure – Senior leadership Board of Directors Managing Independent Directors/Director Directors Oil Conductor Cable CFO CHRO Treasury ESG CS Operational Business Heads - Business Head - CEO – Cable Heads B2B Projects Solutions Marketing Operational Business Head - Business Head - B
Slide 34: Strong financial performance sustained over the years
Strong financial performance sustained over the years Consolidated Revenue Exports contribution at 48.7% in 12M FY23 EBITDA 1,320 14,352 7,358 Export Domestic 6,994 5,528 5,712 9,320 4,956 7,971 7,511 3,736 3,751 3,608 574 5,823 6,388 3,297 2,637 425 412 475 468 422 4,841 2,443 2,555 2,087 1,544 FY1
Slide 35: Key financial ratios
Key financial ratios Debt/ Equity Ratio (x) Net Fixed Asset Turnover Ratio (x) ROE (%) 32.28% 18.65% 16.48% 13.50% 11.78% 11.46% 12.56% FY17 FY18 FY19 FY20 FY21 FY22 FY23 34 amounts in INR crore Corporate Presentation – May 2023
Slide 36: Extensive global presence driving exports
Extensive global presence driving exports PRESENCE IN 140+ COUNTRIES & EXPANDING Prominent presence with established business partners & distributors in USA Canada Australia Brazil Columbia Peru Chile Ethiopia Europe South Africa North South GCC Middle Africa Asia East (UAE) Algeria) (India) Export
Slide 37: Industries we cater to
Industries we cater to 03 Renewable Railways Energy 04 Defence Transformers Mining 05 Industrial 02 Nuclear Atomic Telecommunication & Data Communication Motors & 01 Generators 06 Power Transmission 08 Shipping & Distribution Wires & Cables 07 36 Corporate Presentation – May 2023
Slide 38: Key growth drivers
Key growth drivers Global Infrastructure Spends 01 Electrification • Rise in Power spending • New transmission and distribution systems globally. China Plus One 02 Risk diversification with increased manufacturing capabilities • New market access Carbon Neutrality 03 Adoption of diverse renewable en
Slide 39: Strategic outlook
Strategic outlook Product diversification with focus on premium offerings 1 Renewable energy power infrastructure – significant increase in products & capacities for solar, wind and power telecom 2 convergence. Exploring new markets with export-led focus B2B, 3 wider distribution network B2C 4 Impro
Slide 40: Making this world a better place - ESG
Making this world a better place - ESG As per CRISIL ESG Rating report: RELEASES TWO ESG REPORTS RANKED 3RD AMONG INDUSTRIAL SECTOR KEY METRICS (FY 2021-22) FY 2021-22 FY 2020-21 90,490 tCO2e GHG emission 227,289 KL Water Footprint KL of rainwater harvesting facility ready for monsoon To download Sc
Slide 41: Doing good for society - healthcare
Doing good for society - healthcare DR. N.D DESAI, FACULTY OF MEDICAL DHARMSINH DESAI UNIVERSITY DHARMSINH DESAI MEMORIAL SCIENCE & RESEARCH (DDU) METHODIST HEART INSTITUTE Gujarat Gujarat Gujarat Free Multi-speciality hospital with Established in 1968 Offers Provides world-class cardiac care 800
Slide 42: Doing good for society – Education and Nutrition
Doing good for society – Education and Nutrition ANAMRITA FOUNDATION GOVARDHAN ECO VILLAGE SUPPORTING TOMORROW’S DREAMS Provides Free midday meals in 21 India’s 3rd largest skill Supporting technical high school & cities development centre boys high school at Nadiad Serving 6,500+ schools, 10 S
Slide 43: Significant change in customer mix with focus on premiumisation
Significant change in customer mix with focus on premiumisation Particulars 12MFY23 Exports 48.7% Industries/Corporate 16.7% Specific industry groups 8.6% OEM's 6.5% EPC - Transmission companies 4.8% Utilities - Transmission companies 7.1% Renewables 2.7% Utilities - Electricity Distribution Boards
Slide 44: Quality of Receivables
Quality of Receivables Particulars % of Total* Secured under various means 52.7% Government Transmission and sector specific companies 19.5% Others (of which 63% are with entities where APAR is having business relationship with over 27.8% 3 years) Total 100.0% *based on March’ 23 closing 43 amounts
Slide 45: Financial Overview
FINANCIAL OVERVIEW
Slide 46: Q4 FY23: Highest Q4 Revenue; Profitability at 3x
Q4 FY23: Highest Q4 Revenue; Profitability at 3x v/s LY for 2nd consecutive quarter Revenue EBITDA PAT 36% YoY 146% YoY 194% YoY INR 4,089 INR 445 INR 243 crores crores crores Margin at 10.9% up 490 bps YoY Margin at 5.9% up 320 bps YoY o Q4 FY23 revenue up 36% YoY with volume-led growths across all
Slide 47: 12M FY23: All time high revenue
12M FY23: All time high revenue at 54% growth and profitability at 2.5x v/s LY Revenue EBITDA PAT 54% YoY 130% YoY 148% YoY INR 14,352 INR 1,320 crores INR 638 crores crores Margin at 9.2% up 300 bps YoY Margin at 4.4% up 160 bps YoY o 12M FY23 revenue up 54% YoY with growths coming in from all the
Slide 48: Conductors: Q4 FY23 highlights
Conductors: Q4 FY23 highlights Revenue Volume EBITDA 41% YOY 46% YOY 333% YOY INR 2,121 crores 49,489 MT INR 282 crores INR 65 crore (Q4 FY22) Margin at 13.3%; 4.3% (Q4 FY22) EBITDA per MT EBITDA post adj* EBITDA* per MT 196% YOY 378% YOY 230% YOY INR 56,926 INR 287 crores INR 58,006 INR 19,227 (Q4
Slide 49: Conductors: 12M FY23 highlights
Conductors: 12M FY23 highlights Revenue Volume EBITDA 67% YOY 49% YOY 267% YOY INR 7,013 crores 1,60,131 MT INR 716 crores INR 195 crore (12M FY22) Margin at 10.2%; 4.6% (12M FY22) EBITDA per MT EBITDA post adj* EBITDA* per MT 147% YOY 284% YOY 158% YOY INR 44,700 INR 706 crores INR 44,114 INR 18,13
Slide 50: Speciality Oils & Lubricants: Q4 FY23 highlights
Speciality Oils & Lubricants : Q4 FY23 highlights Revenue Volume EBITDA 28% YOY 12% YOY 35% YOY INR 1,179 crores 1,31,132 KL INR 46 crores INR 71 crores (Q4 FY22) Margin at 3.9%; 7.7% (Q4 FY22) EBITDA per KL EBITDA post adj* EBITDA* per KL 42% YOY 31% YOY 38% YOY INR 3,528 INR 48 crores INR 3,697 IN
Slide 51: Speciality Oils & Lubricants: 12M FY23 highlights
Speciality Oils & Lubricants : 12M FY23 highlights Revenue Volume EBITDA 31% YOY 5% YOY 14% YOY INR 4,656 crores 4,86,582 KL INR 248 crores INR 290 crores (12M FY22) Margin at 5.3%; 8.2% (12M FY22) EBITDA per KL EBITDA post adj* EBITDA* per KL 19% YOY 20% YOY 24% YOY INR 5,102 INR 233 crores INR 4,7
Slide 52: Lubricants: Q4 FY23 highlights
Lubricants : Q4 FY23 highlights Revenue Volume 9% YOY 7% YOY INR 231 crores 18,370 KL o Revenue is up by 9% in Q4 FY23 vs Q4 FY22 o Industrial volume is down 17% YoY, Automotive volume is up by 22% YoY Note: Above numbers are given only for analytical purpose. These numbers are already included in S
Slide 53: Lubricants: 12M FY23 highlights
Lubricants : 12M FY23 highlights Revenue Volume 14% YOY 10% YOY INR 893 crores 69,646 KL o Revenue up 14% YoY driven by growth of industrial and automotive volumes o Industrial volume up 9% YoY , Automotive volume up 10% YoY Note: Above numbers are given only for analytical purpose. These numbers ar
Slide 54: Cables: Q4 FY23 highlights
Cables : Q4 FY23 highlights Revenue EBITDA EBITDA post adj* 38% YOY 130% YOY 143% YOY INR 943 crores INR 115 crores INR 117 crores INR 50 crores (Q4 FY22) INR 48 crores (Q4 FY22) Margin at 12.2%; 7.3% (Q4 FY22) Margin at 12.4%; 7.0% (Q4 FY22) o Revenue up 38% v/s LY due to significant increase in El
Slide 55: Cables: 12M FY23 highlights
Cables : 12M FY23 highlights Revenue EBITDA EBITDA post adj* 64% YOY 216% YOY 225% YOY INR 3,263 crores INR 348 crores INR 344 crores INR 110 crores (12M FY22) INR 106 crore (12M FY22) Margin at 10.7%; 5.5% (12M FY22) Margin at 10.5%; 5.3% (12M FY22) o Revenue up by 64% YoY due to significant increa
Slide 56: 12M FY23 Division-wise EBITDA to PAT
12M FY23 Division-wise EBITDA to PAT Particulars Oil Conductor Cable Others Total EBITDA pre-open period forex (Note 1) 249 716 348 7 1,320 Open period forex (Note 2) 16 9 4 0 29 EBIDTA post open period forex 233 706 344 7 1,291 Finance cost (ex open period forex) (Note 3) 73 148 46 0 267 Unallocabl
Slide 57: Annexures
ANNEXURES
Slide 58: Q4 FY23: Consolidated Profit & Loss Statement
Q4 FY23: Consolidated Profit & Loss Statement Particulars Q4 FY23 Q4 FY22 % Chg YoY Q3 FY23 % Chg QoQ Gross sales 4,056.5 3,003.9 35.0% 3,916.9 3.6% Other Operating Income 32.1 8.6 274.9% 22.0 45.5% Total Operating Income 4,088.6 3,012.5 35.7% 3,938.9 3.8% Total Expenditure 3,664.7 2,838.9 29.1% 3,5
Slide 59: Q4 FY23: Consolidated Segment Analysis
Q4 FY23: Consolidated Segment Analysis Segments Q4 FY23 Q4 FY22 % Chg YoY Q3 FY23 % Chg QoQ Revenue Conductors 2,121.3 1,503.4 41.1% 1,908.1 11.2% Transformer & Specialty Oils 1,179.4 920.8 28.1% 1,241.2 (5.0%) Power & Telecom Cables 943.0 682.7 38.1% 921.1 2.4% Others/Unallocated 25.5 23.2 9.9% 27.
Slide 60: Q4 FY23: Consolidated Segment Analysis
Q4 FY23: Consolidated Segment Analysis Segment Q4 FY23 Q4 FY22 % Chg YoY Q3 FY23 % Chg QoQ Segment Results before Interest and Tax Conductors 275.1 57.3 380.0% 216.8 26.9% Transformer & Specialty Oils 40.6 64.6 -37.2% 20.8 95.2% Power and Telecom Cables 107.2 42.4 152.8% 101.4 5.7% Others/Unallocate
Slide 61: Q4 FY23: Financials
Q4 FY23: Financials Key Ratios Q4 FY23 Q4 FY22 Q3 FY23 EBITDA Margin 10.7% 6.1% 8.9% Net Margin 6.0% 2.7% 4.3% Total Expenditure/ Total Net Operating Income 89.6% 94.2% 91.3% Raw Material Cost/ Total Net Operating Income 72.9% 77.8% 74.6% Staff Cost/ Total Net Operating Income 1.7% 1.5% 1.3% Other E
Slide 62: 12M FY23: Consolidated Profit & Loss Statement
12M FY23: Consolidated Profit & Loss Statement Particulars 12M FY23 12M FY22 % Chg YoY Gross sales 14,272.6 9,287.2 53.7% Other Operating Income 79.5 29.4 170.4% Total Operating Income 14,352.2 9,316.6 54.0% Total Expenditure 13,125.2 8,768.7 49.7% Cost of Raw Materials 10,708.8 7,207.8 48.6% Employ
Slide 63: 12M FY23: Consolidated Segment Analysis
12M FY23: Consolidated Segment Analysis Segment 12M FY23 12M FY22 % Chg YoY Revenue Conductors 7,013.1 4,200.4 67.0% Transformer & Specialty Oils 4,656.7 3,544.2 31.4% Power & Telecom Cables 3,263.5 1,993.7 63.7% Others/Unallocated 107.3 73.0 47.0% Total Revenue 15,040.5 9,811.4 53.3% Less: Inter -
Slide 64: 12M FY23: Consolidated Segment Analysis
12M FY23: Consolidated Segment Analysis Segment 12M FY23 12M FY22 % Chg YoY Segment Results before Interest and Tax Conductors 682.5 162.8 319.2% Transformer & Specialty Oils 225.0 267.6 (15.9%) Power and Telecom Cables 316.8 79.8 297.0% Others/Unallocated 6.8 4.5 51.1% Total 1,231.2 514.6 139.2% Le
Slide 65: 12M FY23: Financials
12M FY23: Financials Key Ratios 12M FY23 12M FY22 EBITDA Margin 8.8% 6.2% Net Margin 4.4% 2.8% Total Expenditure/ Total Net Operating Income 91.5% 94.1% Raw Material Cost/ Total Net Operating Income 74.6% 77.4% Staff Cost/ Total Net Operating Income 1.5% 1.9% Other Expenditure/ Total Net Operating I
Slide 66: Shareholding Pattern
SHAREHOLDING PATTERN
Slide 67: Market performance and shareholding structure
Market performance and shareholding structure APAR has been consistently outperforming market 470 270% 370 270 170 24% -0.5% 70 Apr-22 May-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apar Industries Capital Goods Sensex Chart has been rebased to 100 As on March 31
Slide 68: Thank You
For Institutional enquiries Mr. Ramesh Iyer CFO & Investor Relations Mr. Ambesh Tiwari Contact No : +91 22 67800400 Contact No : +91 84248 93404 E-mail – [email protected] E-mail – [email protected] #215, Shiv Shakti Industrial Estate, 2Nd Floor, For Investor Grievances J R Boricha Marg, Lower