Apar Industries Limited — Q2 FY24
Apar Industries delivered a strong Q2 FY24 with consolidated revenue of INR 3,926 crore (+21% YoY), EBITDA of INR 374 crore (+58% YoY), and PAT of INR 174 crore (+69% 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.
63%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Inquiry flow from transmission and renewables for conductors and cables?
Asked by Mohit Kumar, ICICI Securities
Management gave a clear, positive answer without hedging.
Read the exchange
Question
How has been the inquiry from transmission sector and renewables within the domestic market for conductors and cables separately, if you can, you know, throw some light there?
Kushal Desai, Chairman and Managing Director
The inquiries are, the inquiry flow, Mohit, is quite strong, both in the transmission side as well as from the cable side.
Answered
High priority
Order book breakup for conductors between domestic and export?
Asked by Mohit Kumar, ICICI Securities
Management provided specific numbers for the order book breakup.
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Question
Is it possible to share the order, order book breakup for the conductors between domestic and export?
Kushal Desai, Chairman and Managing Director
So out of the order book that we have for the conductor business, about INR 5,900 crore, about 51% would be exports and the rest would be domestic.
Partial answer
Medium priority
Reconductoring volumes in H1 mix and future change?
Asked by Mohit Kumar, ICICI Securities
Answered with premium product mix but not specifically reconductoring volumes.
did not specify reconductoring separatelyused premium products as proxy
Read the exchange
Question
Is there anything on reconductoring volumes in your total mix for the H1, if possible? And do you expect that mix to change in the domestic market in terms of opportunity, going forward?
Kushal Desai, Chairman and Managing Director
Yes. So our we talk about premium products, typically, and the premium products in the Conductor division is in the range of 40%-45%. Quarter two also has been in that range, and a similar percentage is also there in the order book that is pending as of 30th September.
Evasive
High priority
Impact of rising freight rates on EBITDA margin?
Asked by Anika Mittal, Nvest Analytics Advisory LLP
Management dismissed the BDI relevance and gave no quantitative impact on EBITDA.
downplayed the indexsaid rates are stableno forward guidance
Read the exchange
Question
Freight rates are rising again, so, but the contract, which we had got, should have entered at a lower rate, right? So should that mean, we are going to witness fall in EBITDA % going forward, like last year, the same thing turned out a tailwind for us.
Kushal Desai, Chairman and Managing Director
So, you know, on freight rates, you know, the freight rates correction, the freight rate correction has already happened... freight rates have been in a certain range. So we don't see, you know, freight is just factored in today as we, you know, price the product.
Answered
High priority
Reason for QoQ rise in conductor EBITDA margin?
Asked by Anika Mittal, Nvest Analytics Advisory LLP
Management gave clear reasons for the margin improvement.
Read the exchange
Question
EBITDA percent on the conductor side, so this quarter witnessed a rise on a Q-on-Q basis. So, what is it due to?
Kushal Desai, Chairman and Managing Director
EBITDA percentage in conductors, the reason for that is largely because of the premiumization of the products that has been happening over the last 1.5-2 years now, and also because of the increase in the exports percentage.
Declined
High priority
Is the 3% EBITDA guidance still intact?
Asked by Anika Mittal, Nvest Analytics Advisory LLP
Management explicitly declined to answer due to guidance restrictions.
refused to answer citing policy
Read the exchange
Question
Is our guidance intact? It was 3%, like what we mentioned in earlier quarter, or do you want to revise it?
Kushal Desai, Chairman and Managing Director
So, in the beginning of the call, I think there was a statement that we cannot take any questions on guidance, so we'd like to stick to that, that one.
Partial answer
High priority
Export market traction and key markets despite cautious commentary?
Asked by Charanjit Singh, DSP Mutual Fund
Explained de-inventorization but did not give specific market traction details.
attributed growth to past ordersno specific market details
Read the exchange
Question
In the previous call, your commentary on exports was really cautious. … but despite that, we have delivered a, you know, very strong growth in the exports in both conductors as well as cables, segment. If you can touch upon, you know, on the ground, how the export markets are shaping up...
Kushal Desai, Chairman and Managing Director
So, you know, on the export front, in the last earnings call, you know, we were, we mentioned that, you know, since the supply chains have eased, you know, de-inventorization is taking place. So, you know, that effect has very much been in place.
Answered
High priority
Long-term view on export markets from demand-supply perspective?
Asked by Charanjit Singh, DSP Mutual Fund
Management reaffirmed long-term demand drivers without hedging.
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Question
If you have to, you know, look at the kind of, you know, grid, ramp-up, which is happening in the U.S. and the European markets, and take a maybe little longer term view rather than a, you know, quarterly view on the export markets, then how you would see that market, from demand-supply perspective and overall, you know, growth perspective?
Kushal Desai, Chairman and Managing Director
So, you know, as I mentioned earlier also in the previous quarter's call, we, you know, the fundamental market scenario has not changed. So, the long-term execution and the shift, you know, towards renewable energy... all those parameters remain, you know, pretty much intact.
Partial answer
Medium priority
Cables segment revenue growth factors and wires business update?
Asked by Charanjit Singh, DSP Mutual Fund
Attributed lower growth to de-inventorying but did not quantify the impact.
attributed to de-inventoryingno quantification of impact
Read the exchange
Question
Cable segment, we saw revenue growth of 16% during the quarter on a YY basis. So if you can touch upon, you know, could this growth have been, you know, higher? Were there any factors which could have impacted our growth in the cables and wires, you know, segment?
Ramesh Iyer, CFO
Yeah. So the same effect, Charanjit, as we spoke about, you know, because of, you know, de-inventorying that is being followed by the Western countries, we have seen that impact in Q2. Otherwise, you know, we see the quarter one growth rate was much higher than in quarter two.
Answered
High priority
CapEx progress and plans for H2 and next year?
Asked by Pratiksha Daftari, Aequitas Investments
Provided specific CapEx spent and full-year guidance.
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Question
If you could just elaborate a little bit on the CapEx progress that was announced earlier, and the CapEx plan that we have for H2 of this year and next year, for both cables and conductors.
Kushal Desai, Chairman and Managing Director
So our CapEx spent till September is about INR 150 crores. Bulk of it is there into the cable division and the conductor division, over there. We had envisaged a CapEx of about INR 350 crores-INR 400 crores by the end of the year, and we will be very close to that number as we go into the second half.
Partial answer
High priority
Opportunity from Bharat Net and US reconductoring investment?
Asked by Pratiksha Daftari, Aequitas Investments
Gave qualitative update but no specific revenue or order potential.
cited restrictionsno quantification of opportunity
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Question
One is the Bharat Net, part in India, and the other is, I think what I understand is there's a $3.5 billion investment announced by U.S. for reconductoring their grid... So would we be able to, benefit out of this? And what is the kind of opportunity we can look out of these two initiatives?
Kushal Desai, Chairman and Managing Director
So let me answer the question to the extent that I'm allowed to answer, okay, with these restrictions that are there. So, I mean, you know, we've spoken about the BharatNet opportunity in the last call that we had. The BharatNet opportunity is, it's not yet finalized...
Partial answer
Medium priority
Interest cost increase and working capital outlook?
Asked by Amit Anwani, Prabhudas Lilladher Private Limited
Explained reasons but gave no quantitative outlook for interest cost.
no specific forward guidancevague on tapering
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Question
This quarter, we saw interest cost going significantly up on a sequential basis... So any understanding you would like to give, how should we read the interest cost numbers going forward? And also on the working capital...
Kushal Desai, Chairman and Managing Director
So sequentially, the interest cost is high because, you know, in the first quarter, the interest on discounting was less, and second quarter, the interest on discounting is high... It will taper off because, you know, I think, I mean, depending on the rate hikes, whatever more happens, it will taper off at whatever level.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Elastomeric cable growth 40% in H1 | 40% | 21% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.