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Container shortage and logistics disruption
View Risks →Apar Industries Limited — Q1 FY25
Apar Industries reported Q1 FY25 consolidated revenue of INR 4,011 crore (+6.5% YoY), EBITDA of INR 394 crore (+6.8% YoY) with a 9.8% margin, and PAT of INR 203 crore (+2.6% YoY).
bullish
high
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2-Minute Summary
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Apar Industries reported Q1 FY25 consolidated revenue of INR 4,011 crore (+6.5% YoY), EBITDA of INR 394 crore (+6.8% YoY) with a 9.8% margin, and PAT of INR 203 crore (+2.6% YoY). Domestic business grew 43.4% YoY, while exports declined 25.9% due to container shortages and US regulatory delays. The conductor segment saw 9.1% revenue growth with EBITDA per ton at INR 38,532, driven by premium product mix. Oil division grew 6.1% with transformer oil volumes up 20% YoY. Cables grew 7.8% (domestic +48.4%). Management maintained guidance of 10-15% volume growth in conductors and 25% growth in cables for FY25, expecting normalization of logistics by H2. Key risk: continued disruption from container shortages and US tariff-driven demand shifts.
अपार इंडस्ट्रीज ने पहली तिमाही में 4,011 करोड़ रुपये की कमाई की, जो पिछले साल से 6.5% ज्यादा है। कंपनी ने 394 करोड़ रुपये का मुनाफा कमाया (9.8% मार्जिन) और शुद्ध मुनाफा 203 करोड़ रुपये रहा। भारत में कारोबार 43.4% बढ़ा, लेकिन निर्यात 25.9% घटा क्योंकि शिपिंग कंटेनरों की कमी और अमेरिकी नियमों में देरी हुई। कंडक्टर सेगमेंट में 9.1% बढ़ोतरी हुई और हर टन पर 38,532 रुपये का मुनाफा हुआ। तेल डिवीजन 6.1% बढ़ा और ट्रांसफॉर्मर तेल की बिक्री 20% बढ़ी। केबल सेगमेंट 7.8% बढ़ा, जिसमें भारत में 48.4% उछाल रहा। कंपनी को उम्मीद है कि साल के दूसरे हिस्से में शिपिंग सामान्य हो जाएगी और कंडक्टर में 10-15% तथा केबल में 25% बढ़ोतरी होगी। मुख्य जोखिम: कंटेनरों की कमी और अमेरिकी टैरिफ से मांग में बदलाव।
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Conductor EBITDA per ton
INR 38,532
+15% YoY
EBITDA per metric ton post-Forex adjustment in conductor division, driven by higher margin product mix.
Transformer oil volume growth
20%
+20% YoY
Global transformer oil volumes grew 20% YoY, driven by strong demand and market share gains.
Conductor order book
INR 6,725 crore
N/A
Order book includes 41% premium products; new order inflow of INR 1,794 crore in Q1.
Cable domestic revenue growth
48.4%
+48.4% YoY
Domestic cable revenue grew 48.4% YoY, offsetting lower US exports.
What Changed vs Last Quarter
NEW
Cable EBITDA margin 10-12%
Management expects cable EBITDA margins to remain in the 10-12% range for FY25.
UPDATED
Conductor volume growth 10-15% for FY25
Management expects full-year volume growth in conductors between 10-15%, driven by domestic demand and recovery in exports.
UPDATED
Cable revenue growth of 25% for FY25
Cables division targets 25% annual revenue growth, assuming US demand recovery and strong domestic momentum.
UPDATED
CapEx of INR 300-350 crore in FY25
Capital expenditure for FY25 is planned at INR 300-350 crore, primarily for cable and conductor divisions.
DROPPED
Conductor EBITDA per metric ton guidance of INR 28,000-28,500
Despite current higher levels, management continues to guide long-term EBITDA per metric ton at around INR 28,000-28,500 for the conductor division.
NEW RISK
Container shortage and logistics disruption
Export shipments across all divisions were affected in June due to container availability, with over INR 270 crore of shipments postponed. This may persist into Q2.
NEW RISK
Regulatory delays in US and Europe
Delays in regulatory approvals for transmission line projects in the US and Europe have affected export demand, particularly for conductors.
NEW RISK
Dependence on US market for cables
Cable exports to the US have been volatile due to inventory rationalization and regulatory delays; recovery is expected but timing uncertain.
RISK GONE
Prolonged U.S. market slowdown
U.S. demand remains soft due to high interest rates and election uncertainty; recovery may take longer than expected.
RISK GONE
Impact of Red Sea crisis on freight costs
Higher freight costs due to Red Sea disruptions affect export competitiveness, especially to Europe.
RISK GONE
Potential tariff actions against Indian exports
Analyst raised concern that U.S. tariffs on Chinese aluminum could extend to India; management downplayed but acknowledged existing tariffs of 5-15%.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q4 FY24
Despite current higher levels, management continues to guide long-term EBITDA per metric ton at around INR 28,000-28,500 for the conductor division.
Mentioned in Q1 FY24, Q2 FY24
Distributors in the US and Europe are reducing inventory levels, leading to slower order inflows for cables and conductors. This could persist for several months, impacting near-term export revenue.
Mentioned in Q3 FY24, Q4 FY24
Higher freight costs due to Red Sea disruptions affect export competitiveness, especially to Europe.
Fast read
Guidance and risk preview
Management expects full-year volume growth in conductors between 10-15%, driven by domestic demand and recovery in exports.
Export shipments across all divisions were affected in June due to container availability, with over INR 270 crore of shipments postponed.
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