Apar Industries Limited — Q1 FY24
APAR Industries reported a strong Q1 FY24 with consolidated revenue of INR 3,773 crore (+22% YoY), EBITDA of INR 369 crore (+54% YoY) at a margin of 9.8%, and PAT of INR 197 cro...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
92%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Polymer division outlook and B2C retail strategy vs Polycab.
Asked by Ankur Jain, Future Investments Private Limited
Management provided specific revenue targets and growth strategy for both divisions.
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Question
What is the recent prediction do you see in this business and the overall loss in the polymer division? ... I want to know, like, what is the way forward for this business, and, like, our products are better than competition in terms of quality and prices?
Charanjit Singh (Fund Manager, DSP) and Kushal Desai (Chairman and Managing Director)
Polymer business is relatively small... about INR 100 crore revenue per annum... hope to get to INR 200 crore-INR 300 crore. ... Our retail presence is growing... we can see clear visibility of getting to about INR 500 crore in FY 2026.
Answered
High priority
Conductor guidance and ACSR opportunity impact.
Asked by Amit Anwani, Prabhudas Lilladher
Management reaffirmed volume and EBITDA guidance with specific numbers.
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Question
Are we now, since export is the largest contributor, sticking to our guidance of 10% volume? ... Second, this ACSR opportunity, how that is going to pan out for us?
Ramesh Iyer (CFO)
We are not changing our guidance on all the three divisions. Conductor, we continue to hold a volume growth of about 10% in terms of volume. In terms of EBITDA, we expect it to be in the range of INR 25,000 per metric ton.
Answered
High priority
Cable CapEx trajectory and de-inventorization impact.
Asked by Amit Anwani, Prabhudas Lilladher
Management provided specific CapEx range and allocation.
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Question
what is the utilization or CapEx trajectory, which we mentioned, any color on that? If you could just highlight the break up within cables...
Ramesh Iyer (CFO)
Even cables, our CapEx guidance continues to what we've mentioned in the last quarter. Overall, our CapEx for this year, for the next 12-18 months, are likely to be about INR 350 crore-INR 400 crore. About two-thirds is going to be on cable.
Evasive
Medium priority
Premium product contribution slowdown in cables.
Asked by Amit Anwani, Prabhudas Lilladher
Management did not address the decline, instead deflecting to annual view.
dismissed quarterly variationno specific explanation
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Question
For premium product contribution, did we saw any slowdown? I can see 42% versus 47% YoY, and HEC is just 20% versus 26% YoY.
Ramesh Iyer (CFO)
quarter on quarter, these percentages vary. It's very difficult to put that on a quarter on quarter basis. Typically, we look at the entire 12-month period.
Answered
Medium priority
Drivers of cable export growth and synergy with conductors.
Asked by Maulik Patel, Equirus Securities
Management explained the synergy and customer overlap clearly.
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Question
Is it because of our relationship with Conductor and TSO segments are opening this product to the same customers, or is there something else which has been driving this growth?
Kushal Desai (Chairman and Managing Director)
There is a combination of two things at play. There are a few customers who are common in terms of conductors and cable... There is one group of those customers...
Answered
Medium priority
Drivers of TSO segment growth beyond government schemes.
Asked by Maulik Patel, Equirus Securities
Management listed multiple specific drivers.
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Question
Is there anything else which has been driving the growth, any more new? We understand that the government and SEB started procuring more transformers.
Kushal Desai (Chairman and Managing Director)
There are two major schemes which are there. One is the RDSS... Gati Shakti... The third effect is that these green sites are coming up with increased combination of wind and solar...
Answered
High priority
US market weakness and compensation from other geographies.
Asked by Charanjit Singh, DSP
Management provided timeline and context for recovery.
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Question
Can you the markets which you have talked about, like, you know, Latin and Europe, they'll be able to compensate for that in the near term? Where do you see that the U.S. market can come back again?
Kushal Desai (Chairman and Managing Director)
There is a similar effect is there even in Europe... Most customers are talking about a three-four months period where ordering will be at a slower pace. ... the free flow of demand should probably pick up in the next, say, at the end of this quarter.
Answered
Medium priority
Transformer oil volume growth outlook given strong transformer demand.
Asked by Charanjit Singh, DSP
Management affirmed growth and market leadership.
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Question
When we are looking at, you know, most of the transformer manufacturers, the outlook from their side is pretty strong... in a way, then, create this transformer oil segment also in terms of volume growth can be much higher?
Kushal Desai (Chairman and Managing Director)
We expect that the volume growth should definitely take place. ... We still maintain 40%+ market shares in the domestic market. We are by far the largest exporter from India on the transformer oil side.
Answered
Medium priority
Realization and margin stability across segments.
Asked by Dhananjai Bagrodia, ASK
Management explained pass-through mechanisms and margin control.
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Question
What do you understand regarding your realization for the year for the segment? How do you see that playing along?
Ramesh Iyer (CFO) and Kushal Desai (Chairman and Managing Director)
The realization is actually a function of multiple factors... aluminum and copper are completely passed through. ... We try to control the value addition... No speculation on any of the metals.
Answered
High priority
Cable order book decline and margin outlook.
Asked by Riya Mehta, Aequitas Investments
Management explained the decline and provided margin guidance.
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Question
We are seeing a sequential decline in the cable order book. Where is this coming from, and could you guide us in the pipeline for the same?
Kushal Desai (Chairman and Managing Director)
the orders coming from the United States have slowed down... will be a soft for the next few months... We are guiding a margin of 10%-12%, which should be around that levels.
Answered
Medium priority
Conductor order book duration and premium product contribution.
Asked by Pratiksha Daftari, Aequitas Investments
Management provided specific duration and percentage.
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Question
Just wanted to understand the order book for the conductor division. This would be for six months? ... what would be the contribution of value-added products, specifically HEC and OPGW, in this order book?
Ramesh Iyer (CFO)
Typically it ranges about six-seven months. ... The premium products that we call, these could be about 45% of the order book.
Answered
High priority
Why low EBITDA guidance for conductors despite premiumization.
Asked by Kishan Tosniwal, Polar Ventures LLP
Management explained the step-up and reaffirmed guidance.
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Question
why are we guiding for INR 25,000 EBITDA realization when we are seeing that the premium products will become the new normal, then why so low guidance on realization of conductors?
Kushal Desai (Chairman and Managing Director)
Typically, ACSR conductors carried guidance for decades... Getting to INR 25,000 plus is a good step up... We've not changed our guidance. It's still remaining at 25,000+ any tailwinds.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Polymer business revenue about INR 100 crore per annum | ₹100 cr | ₹3,773 cr | Understated vs filing |
| Conductor volume growth guidance 10% | 10% | 22% | Understated vs filing |
| Cable margin guidance 10%-12% | 11% | 9.8% | Overstated vs filing |
| Lubricants revenue INR 241 crore, volume 17,500 kl | ₹241 cr | ₹3,773 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.