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View Risks →Apar Industries Limited — Q3 FY25
APAR Industries reported Q3 FY25 consolidated revenue of INR 4,716 crore, up 17.7% YoY, driven by strong domestic volume growth in conductors and cables.
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APAR Industries reported Q3 FY25 consolidated revenue of INR 4,716 crore, up 17.7% YoY, driven by strong domestic volume growth in conductors and cables. However, EBITDA fell 7.1% to INR 401 crore (margin 8.5%), and PAT declined 19.7% to INR 175 crore, impacted by a shift from higher-margin exports to domestic business, lower premium product mix, and elevated freight costs. The conductor order book stands at INR 7,600 crore, with new orders up 62.3% YoY. Management expects export demand to recover as U.S. sales sequentially improved 8.5% and freight costs soften. Key risks include sustained Chinese competition in export markets and potential delays in domestic tender finalizations due to budget mismatches.
एपीएआर इंडस्ट्रीज ने तीसरी तिमाही में 4,716 करोड़ रुपये की कमाई की, जो पिछले साल से 17.7% ज्यादा है। यह बढ़ोतरी देश में तार और केबल की मजबूत मांग से हुई। लेकिन मुनाफा घट गया। कंपनी की कमाई पर खर्च (EBITDA) 401 करोड़ रुपये रहा, जो 7.1% कम है। शुद्ध मुनाफा (PAT) 175 करोड़ रुपये रहा, जो 19.7% गिर गया। इसकी वजह यह है कि कंपनी ने ज्यादा मुनाफे वाले निर्यात के बजाय घरेलू बाजार पर ध्यान दिया, महंगे उत्पाद कम बेचे, और माल ढुलाई का खर्च बढ़ गया। कंपनी के पास 7,600 करोड़ रुपये के ऑर्डर हैं, और नए ऑर्डर 62.3% बढ़े हैं। प्रबंधन को उम्मीद है कि अमेरिका में बिक्री बढ़ने और ढुलाई खर्च कम होने से निर्यात सुधरेगा। लेकिन चीन से प्रतिस्पर्धा और सरकारी टेंडर में देरी का खतरा बना हुआ है।
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Conductor Order Book
INR 7,600 crore
+62.3% YoY (new orders)
New orders received in Q3 were INR 3,077 crore, 62.3% higher than Q3 FY24.
Conductor EBITDA per Ton
INR 29,593
-28.7% YoY
EBITDA per metric ton fell from INR 41,500 in Q3 FY24 due to lower premium product mix and geography shift.
Cable Revenue Growth
INR 1,266 crore
+37% YoY
Cable division revenue grew 37% YoY, driven by strong domestic demand in T&D, renewables, and railways.
Export Mix (Overall)
33.5%
-7.2pp YoY
Export contribution fell from 40.7% in Q3 FY24 as domestic growth outpaced exports.
What Changed vs Last Quarter
NEW
Cable division top-line growth of 25% on value terms
Management reiterated guidance for cable division to grow 25% year-on-year in value terms for FY25.
NEW
Conductor division volume growth of 10%
Management expects conductor division to grow 10% year-on-year in volume terms for FY25.
NEW
Oil division volume growth of 5%-8%
Management expects oil division to grow 5%-8% year-on-year in volume terms for FY25.
NEW
Cable EBITDA margin target of 11%-12%
Management targets cable division EBITDA margin of 11%-12%, driven by U.S. recovery and cost optimization.
DROPPED
Conductor volume growth may fall short of 10% guidance for FY25
Management expects full-year conductor volume growth to be below the earlier 10% guidance due to lower H1 volumes, but aims to make up in H2.
DROPPED
US business expected to show sequential growth
Management sees sequential improvement in US orders, with Q2 order intake up 17.5% QoQ, and expects this trend to continue.
DROPPED
Conductor EBITDA per ton guidance maintained at INR 28,500
Despite current higher margins, management maintains a conservative guidance of INR 28,500 per ton for conductor EBITDA.
DROPPED
CTC capacity doubling to come on stream in January
APAR is doubling its CTC conductor capacity, with the new capacity expected to be operational in January 2025.
NEW RISK
Domestic tender delays due to budget mismatches
Many tenders for transmission lines and substations are being retendered because bids exceeded budgets, slowing order finalization and execution.
NEW RISK
U.S. policy uncertainty under new administration
Potential changes to IRA benefits and tariffs could impact U.S. demand, though management notes it's too early to assess.
RISK GONE
Export volumes may not recover as expected
Management's expectation of export recovery, especially in cables, may be delayed if US approvals take longer or competition intensifies.
RISK GONE
Reconductoring policy and execution delays
While reconductoring is a key growth driver, actual execution has been slow, with only 20% of annual transmission line target achieved in H1.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q1 FY25, Q2 FY24, Q3 FY24, Q4 FY24
Capital expenditure for FY25 is planned at INR 300-350 crore, primarily for cable and conductor divisions.
Mentioned in Q1 FY24, Q2 FY25, Q4 FY24
Despite current higher margins, management maintains a conservative guidance of INR 28,500 per ton for conductor EBITDA.
Mentioned in Q1 FY25, Q4 FY24
Cables division targets 25% annual revenue growth, assuming US demand recovery and strong domestic momentum.
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 reiterated guidance for cable division to grow 25% year-on-year in value terms for FY25.
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