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
✓ 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.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Impact of new conductor capacity from KEC and Diamond Power on market share.
Asked by Maulik Patel, Equirus Securities
Management directly addressed the competitive threat and explained barriers to entry.
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Question
Are we going to see a significant market? And if they are coming up with a new capacity, how long it generally takes for the new entity to take an approval from the relevant authorities?
Kushal Desai, Chairman and Managing Director
Companies like KEC, who are EPC companies, they will be more catering to their internal requirements... there will be a conflict of interest with other EPC companies. So it's not likely that they will be actually upsetting the marketplace.
Partial answer
High priority
Reason for low order inflow and impact of elections.
Asked by Maulik Patel, Equirus Securities
Acknowledged election impact but did not quantify order inflow decline; pivoted to half-year figure.
no specific order inflow number givenreframed to half-year basis
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Question
Your order inflow was one of the lowest. Is that because of the election, that's been a decline in the new order inflow?
Kushal Desai, Chairman and Managing Director
Part of it was on account of the code of conduct... there is also previous quarter where we had a good inflow of orders... But Maulik, on a half year basis, you're looking at almost INR 5,000 crore.
Answered
High priority
Whether US cable slowdown has bottomed out.
Asked by Maulik Patel, Equirus Securities
Management gave a clear affirmative answer with supporting evidence.
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Question
Kushal, you've been highlighting about this slowdown in US market from a cable perspective. Have we seen the bottom of that?
Kushal Desai, Chairman and Managing Director
I think so, because our inquiry rates have substantially increased, and even the order inflow has started increasing... I think it has already bottomed out, very clearly bottomed out.
Partial answer
High priority
Volume expectations for conductor exports and regulatory delays.
Asked by Amit Anwani, PL Capital
Explained delays but did not provide quantitative volume expectations.
no specific volume guidance givendeferred to Q3 normalization
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Question
What are the volume expectations? And second thing, I wanted to understand on the regulatory delays which you have highlighted, if you can elaborate more.
Kushal Desai, Chairman and Managing Director
On the regulatory front, the foreign regulatory bodies are more demanding... higher interest rates also have sort of forced some of these projects to get a little postponed... we are hoping that from Q3 onwards, things should normalize.
Answered
High priority
Whether export contribution will return to 40%.
Asked by Amit Anwani, PL Capital
Management gave a clear affirmative answer.
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Question
So are we expecting that the contribution will again come back to higher level of 40% from exports?
Kushal Desai, Chairman and Managing Director
Yes. Yeah, the mix will be better.
Evasive
Medium priority
Whether EBITDA per ton guidance is being revised.
Asked by Amit Anwani, PL Capital
Did not confirm or deny revision; referred to prior guidance without specifics.
no specific EBITDA per ton number givendeferred to annual guidance
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Question
Are we revising EBITDA per ton? This quarter it was about 18.
Kushal Desai, Chairman and Managing Director
No, so we go with our annual guidance that we had shared last time, but we have been working on improving the product mix.
Partial answer
Medium priority
Transformer oil volume growth and outlook for oil business.
Asked by Amit Anwani, PL Capital
Confirmed 20% growth but did not provide EBITDA per KL outlook.
no EBITDA per KL guidance given
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Question
On the oil business, we did highlight that the global transformer oil volume have gone up by 20%. Is it for Apar? And if so, then what is the outlook for the oil business with respect to EBITDA per KL and volumes?
Kushal Desai, Chairman and Managing Director
The transformer oil, the 20% growth, is specific to Apar... We have been gaining market share in several countries... As far as the product verticals are concerned, transformer oil... has shown these numbers over 20% growth.
Answered
High priority
Cables business guidance of 20% growth and margins.
Asked by Amit Anwani, PL Capital
Management confirmed guidance with specific numbers.
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Question
With the comeback in the exports business, are we still guiding more than 20% growth for the cables business and similar kind of margins, 10.5%-11.5%?
Kushal Desai, Chairman and Managing Director
Yes. Yes, we are. You know, margins are likely to be in the range of 10%-12%. And in overall value, also we are looking at about 25% growth on an annual basis.
Answered
Medium priority
Railway orders outlook given budget electrification reduction.
Asked by Riya Mehta, Aequitas Investment Consultancy
Management explained the shift in railway orders clearly.
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Question
In the budget also, the electrification numbers have reduced... So going forward, what kind of railway orders are we seeing?
Kushal Desai, Chairman and Managing Director
The railway electrification side has already... 90% is already done. The inflow of orders for copper conductors is down. However, for certain special copper alloys... that business has started for the higher speed trains.
Answered
Medium priority
Impact of falling copper and aluminum prices on margins.
Asked by Mahesh Bendre, LIC Mutual Fund
Management gave a clear explanation of hedging policy.
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Question
The prices of copper and aluminum has dropped significantly. So what impact this will have on us in coming quarters?
Ramesh Iyer, CFO
Copper and aluminum rates doesn't affect our margins, because now we run a full hedge book for all the orders that we have.
Partial answer
Medium priority
Reason for 30% growth in auto lubricants and OEM mix.
Asked by Himanshu Upadhyay, Bugler Rock PMS
Explained growth drivers but did not quantify the mix.
no specific aftermarket vs OEM mix given
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Question
What led to this high growth? What would be the mix of aftermarket versus OEM sales?
Ramesh Iyer, CFO
The growth has really come from the B2B side of the business... On the automotive side... Apar has actually gained market share or share of business from some of the existing OEMs.
Answered
High priority
Whether cable guidance of 25% growth factors in Q2 slowness.
Asked by Mohit Motwani, Nuvama Wealth
Management confirmed guidance includes Q2 slowness.
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Question
You mentioned that you are maintaining the guidance of 25% growth for FY 2025. So this is factoring in the slowness in Q2 that you mentioned, right?
Ramesh Iyer, CFO
Yeah. We expect that the demand from the U.S., coming up, and we should be able to catch up with the growth numbers.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Volume growth expected 10%-15% for full year | 15% | 6.5% | Overstated vs filing |
| Cables business 25% growth on annual basis | 25% | 6.5% | Overstated vs filing |
| Cables EBITDA margin range 10%-12% | 12% | 9.8% | Overstated vs filing |
| Domestic cable business grew more than 40% this quarter | 40% | 6.5% | Overstated vs filing |
| LDC business grew 50% to INR 70 crore this quarter | 50% | 6.5% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.