Apar Industries Limited — Q3 FY24
APAR Industries reported a solid Q3 FY24 with consolidated revenue of INR 4,013 crore (+2% YoY), EBITDA of INR 432 crore (+24% YoY) at a margin of 10.8% (up 190 bps YoY), and PA...
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.
54%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Are you seeing more HTLS tenders from state utilities or Power Grid?
Asked by Mohit Kumar, ICICI Securities
Confirmed trend but gave no quantification or timeline.
timing unclearno specific numbers
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Question
Are we seeing a larger traction from the state utilities or Power Grid? Are we seeing more tenders compared to last year?
Chaitanya Desai, Managing Director
Yes, we are seeing, there is a increasing interest in putting up more HTLS lines. But some of the timing of those tenders is unclear to us as to when exactly those will fructify.
Partial answer
High priority
What is the EBITDA per ton differential between AL-59 and ACSR?
Asked by Renu Baid, IIFL Securities
Did not quantify the differential; instead gave a blended long-term guidance.
no specific differential givenreframed to overall guidance
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Question
What does this mean in terms of differential in, either realization per ton or EBITDA per ton, when we compare it with the conventional ACSR?
Ramesh Iyer, CFO
The margins are better because the weight of the conductor is much less... we feel that the conductor margin could be anywhere above INR 28,500 per metric ton, plus the tailwinds too.
Evasive
Medium priority
What is the current share of AL-59 in conductor mix and expected by FY26?
Asked by Renu Baid, IIFL Securities
Avoided quantifying current or future share; spoke only about trend.
no numbers givenqualitative only
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Question
Can you help us quantify, from, you know, being negligible a few years back, where does it stand today? And as an industry leader, in your view, by, in say two years, by fiscal 2026, how large could be the share of AL-59?
Kushal Desai, Chairman and Managing Director
The Central Electricity Authority has now made this AL-59 as an option... it is becoming the standard... all these interstate lines, and even longer intrastate lines, will all move towards AL-59 as a base.
Evasive
Medium priority
What was the order inflow for transformer oil in nine months?
Asked by Mehul Mehta, SPA Securities
Did not provide order inflow data; discussed general demand drivers.
no order inflow numberdeflected to qualitative outlook
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Question
How would it have been, in terms of order inflow, can you share for nine months, how we have seen, like, in terms of transformer oil?
Kushal Desai, Chairman and Managing Director
Our call ups for transformer oil basically happened largely from transformer OEMs... it's sometimes a little misleading, just looking at three months.
Answered
High priority
What is the volume growth outlook for conductors in FY25?
Asked by Renu Baid, IIFL Securities
Provided a clear quantitative growth guidance.
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Question
How should we look at the volume growth for fiscal 2025, given that the backlog is already there with us today?
Ramesh Iyer, CFO
We are looking at a 15% volume growth on the conductor division for the year, year ahead.
Declined
Medium priority
What is the L1 order book for conductors?
Asked by Renu Baid, IIFL Securities
Explicitly declined to provide the number.
refused to share
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Question
Do we have any L1 number to share on the order book for conductors, projects where we are already L1?
Ramesh Iyer, CFO
No, we don't share these numbers.
Answered
Medium priority
What is the cable business mix by product for nine months?
Asked by Renu Baid, IIFL Securities
Provided specific percentage ranges for product mix.
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Question
Can you just give or share a broad indicative mix for the nine-month period? How has it been between the high voltage and low voltage?
Ramesh Iyer, CFO
Out of our total sales, about 25%-30% is this elastomeric cables... OFCs would be about 10-odd percentage, and the remaining would be the power cables.
Partial answer
High priority
What is the cable volume growth outlook and margin expansion?
Asked by Renu Baid, IIFL Securities
Gave volume growth but did not quantify margin expansion.
no margin guidance given
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Question
How do you look at the volume growth in this segment to ramp up? And along with volume, with increasing mix of specialty cables here, how do we see the margin expansion story?
Kushal Desai, Chairman and Managing Director
We expect the cable business to grow at about 25% a year, CAGR, for the next few years.
Answered
High priority
Do you have capacity to sustain 15% volume growth in conductors?
Asked by Dhananjay Bagrodia, ASK Investment Managers
Confirmed capacity and expansion plans to support growth.
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Question
Do we have capacities two or three years hence, to continue with the same kind of growth?
Ramesh Iyer, CFO
We have a capacity of about 205,000 metric ton... as we see growth of 15% volume coming on the year, you will see capacity also increasing in that proportion.
Partial answer
High priority
Will international business recovery start from next quarter?
Asked by Mahesh Bendre, LIC Mutual Fund
Did not commit to next quarter; spoke about FY25 being better.
no specific quarter givenvague timeline
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Question
During the quarter, our international business has been quite soft... do you think recovery will happen from next quarter onwards?
Kushal Desai, Chairman and Managing Director
As you look at FY 2025, you will see that the number will be better than FY 2024. Increasingly, it looks like that's going to happen.
Partial answer
Medium priority
Why did conductor margins improve this quarter and are tailwinds sustainable?
Asked by Levin Shah, Motilal Oswal Asset Management Company
Explained drivers but did not quantify contribution of each factor.
no specific margin breakdownqualitative only
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Question
This quarter again, we have seen some improvement. Is it because of U.S. market going down... or you see the tailwinds continuing for a longer period of time?
Ramesh Iyer, CFO
It's a combination of now overall premiumization of the product portfolio... we don't expect the tailwinds to have go down immediate effect... we don't expect suddenly the margins to drop.
Answered
Medium priority
What is the acceptances number and interest cost outlook?
Asked by Charanjit Singh, DSP Mutual Fund
Provided the acceptances number and gave qualitative outlook on interest cost.
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Question
Especially on the acceptances and the interest cost, if you can touch upon what is the acceptances number right now? And how should we see the interest cost overall going forward?
Ramesh Iyer, CFO
The acceptances is about INR 4,100 crore... interest cost actually is a function of... rates of metals... depending on the volume of the business... maybe that's the level we can see.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Conductor volume growth guidance of 15% for FY25 | 15% | 2% | Overstated vs filing |
| Cable business growth guidance of 25% CAGR | 25% | 2% | Overstated vs filing |
| Conductor long-term EBITDA margin guidance above INR 28,500 per ton | 28,500 | 432 | Overstated vs filing |
| Oil business EBITDA per KL at INR 6,125 for nine months | 6,125 | 432 | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.