Apar Industries Limited — Q2 FY25
Apar Industries reported a strong Q2 FY25 with consolidated revenue of INR 4,645 crore, up 18.4% YoY, driven by robust domestic growth of 61.1%.
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.
67%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
Medium priority
Difficulty in manufacturing HVDC cables and plans to produce them.
Asked by Mohit Kumar, ICICI Securities
Management directly clarified the question and addressed the capability.
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Question
how difficult it is to manufacture the HVDC cables, and is there a plan to produce the same in our factories?
Kushal Desai, Chairman and Managing Director
the HVDC cables are not very much more complex to manufacture compared to the regular 765 kV. Sorry, what I meant is conductors. So there's not a major difference in the format of the conductors which are there for HVDCs.
Partial answer
High priority
Volume growth guidance of 8-10% in conductor business.
Asked by Mohit Kumar, ICICI Securities
Management acknowledged shortfall but did not commit to revised guidance.
guidance softenedno specific number for H2
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Question
Is it fair to say that we are still maintaining the guidance of 8%-10% growth in the medium-term?
Kushal Desai, Chairman and Managing Director
we may be short of the 10% guidance that we have given earlier because the first half has been lower. However, we plan to make it up in the second half of the year.
Answered
High priority
Reconductoring opportunity and tendering activity in H1.
Asked by Mohit Kumar, ICICI Securities
Management explained the slowdown and gave outlook for H2.
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Question
What has happened in the first half? Can you just throw some light on how do you see the entire year in terms of the reconductoring opportunity?
Kushal Desai, Chairman and Managing Director
In this first half, we had a slight slowdown with the elections. So a lot of tendering and all got performed out. But now in the second half, we see this activity build up again.
Answered
High priority
Impact of Chinese competition on international markets and pricing strategy.
Asked by Nitin Arora, Axis Mutual Fund
Management clearly stated they will not lower prices to compete with Chinese.
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Question
How do you assess things? ...is it something we are also getting aggressive in terms of lowering the prices?
Kushal Desai, Chairman and Managing Director
I don't think we will drop prices to just meet Chinese competition just for the sake of volume because we have better options available.
Partial answer
Medium priority
Sustainability of high domestic growth and margin outlook.
Asked by Nitin Arora, Axis Mutual Fund
Management avoided giving a quantitative growth outlook, focused on qualitative factors.
no specific growth guidancereframed to qualitative
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Question
You still think it's going to sustain for the next few quarters, this kind of growth?
Kushal Desai, Chairman and Managing Director
I would not focus on just the percentage of growth because the base for the domestic market was lower. But you will see... domestic percentages remaining at reasonably good levels.
Answered
High priority
Prolonged Chinese competition and strategy to deal with it.
Asked by Amit Anwani, PL Capital
Management acknowledged persistence and outlined product diversification strategy.
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Question
Can we expect that this will be prolonged in ex-U.S. geographies, the Chinese competition? And how are we thinking to deal with this Chinese competition?
Kushal Desai, Chairman and Managing Director
We are working on a default case that it will continue. ...the strategy which we've been following. I guess we'll continue to follow that to sort of counter some of the competition coming in from China.
Evasive
Medium priority
Export-domestic revenue split and margin differential for cables.
Asked by Amit Anwani, PL Capital
Management did not provide the requested split or margin comparison.
no specific ratio givenno margin differential numbers
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Question
Will it be a fair assumption that this year maybe export domestic will be kind of 30/70... Any sense you would like to give for cables and conductors, export and domestic side?
Kushal Desai, Chairman and Managing Director
We'll have to see how the second half of the year pans out. ...the domestic cable side... has been lower than what would be in some of the overseas markets.
Answered
Medium priority
New products in transformer oil division, like data center cooling.
Asked by Naman Parmar, Niveshaay
Management provided specific product development status and launch details.
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Question
Any new product in the pipeline for the transformer oil or oil division, like data center, air cooling, like that?
Kushal Desai, Chairman and Managing Director
We've developed a bunch of products and tested it... for data center cooling. But we haven't yet been able to get a site to be able to do field trial... we have developed and launched a synthetic transformer oil.
Answered
High priority
Margin outlook and impact of raw material prices.
Asked by Naman Parmar, Niveshaay
Management explained hedging and gave margin recovery expectation.
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Question
What do you expect in the coming quarter? It will be sustainable. You will be able to stabilize the margin...?
Kushal Desai, Chairman and Managing Director
Aluminum and copper does not affect us much... we run a 100% hedge book. ...as you see export volume again increasing sequentially... we can see margins going up again to what it used to be earlier.
Evasive
Medium priority
Total global reconductoring market opportunity and APAR's market share.
Asked by Ankur, Future Investments Private Limited
Management declined to provide any estimate or market share.
no number givenclaimed no data available
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Question
What is the total global reconductoring market opportunities there annually? And what is APAR's market share in this total opportunity size?
Kushal Desai, Chairman and Managing Director
It's difficult to put a number on the total annual opportunity... There is no source of information for that. There is no organized source that gives this information in terms of total reconductoring how much it is.
Evasive
Medium priority
Position in the infrastructure upgrade cycle and competitive landscape.
Asked by Bobby Jayaraman, Falcon Investment Advisors
Management avoided quantifying the progress, gave qualitative outlook.
no percentage givenreframed to long-term view
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Question
Where do you think India is in terms of its infrastructure upgrade... Are we 20% done, 30%, 50%?
Kushal Desai, Chairman and Managing Director
We don't see this being cyclical, actually. The cycle is going to be a decadal cycle. ...India being actually better than in most other countries.
Answered
High priority
Capacity expansion plans given weaker volume.
Asked by Shaun Tan, Aberdeen
Management confirmed continuation of capacity expansion without hesitation.
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Question
I was wondering if APAR would still be continuing your announced capacity expansion given the seemingly weaker than expected volume?
Kushal Desai, Chairman and Managing Director
Yes. Capacity expansion happens. It is a continuous process for us. ...we are going ahead with all our capacity expansion plans. There is no change in that at all.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| B2C cable revenue last year INR 275 crore | ₹275 cr | ₹4,645 cr | Understated vs filing |
| B2C cable growth 35-40% in H1 this year | 37.5% | 18.4% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.