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Chinese competition in export markets
View Risks →Apar Industries Limited — Q4 FY24
APAR Industries reported Q4 FY24 consolidated revenue of INR 4,455 crore (+9% YoY) and EBITDA of INR 457 crore (+3% YoY), with margins contracting 60bps to 10.3% due to weaker export mix.
bullish
high
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APAR Industries reported Q4 FY24 consolidated revenue of INR 4,455 crore (+9% YoY) and EBITDA of INR 457 crore (+3% YoY), with margins contracting 60bps to 10.3% due to weaker export mix. PAT was INR 236 crore (-3% YoY) on a high base. Domestic demand remained robust, offsetting U.S. de-inventorying; global sales ex-U.S. grew 29.8%. The conductor division saw 14% volume growth, with EBITDA per ton at INR 48,453 aided by premium product mix and one-off recoveries. The order book stood at INR 6,885 crore with 44.8% premium products. Management expects medium-term conductor volume growth of ~15% and cable growth of 25% YoY, driven by domestic transmission and renewable investments. Key risks include Chinese competition in export markets and prolonged U.S. slowdown.
एपीएआर इंडस्ट्रीज ने चौथी तिमाही में 4,455 करोड़ रुपये की कमाई की, जो पिछले साल से 9% ज्यादा है। कंपनी का मुनाफा 236 करोड़ रुपये रहा, जो 3% कम है क्योंकि पिछले साल का आंकड़ा बहुत ऊंचा था। कंपनी की कमाई और खर्च के बीच का अंतर (EBITDA) 457 करोड़ रुपये रहा, लेकिन इसका मार्जिन थोड़ा घटकर 10.3% हो गया। भारत में मांग मजबूत रही, जिससे अमेरिका में कम बिक्री का असर कम हुआ। कंडक्टर डिवीजन की बिक्री 14% बढ़ी और हर टन पर 48,453 रुपये का मुनाफा हुआ। कंपनी के पास 6,885 करोड़ रुपये के ऑर्डर हैं, जिनमें से 44.8% प्रीमियम प्रोडक्ट हैं। आने वाले समय में कंडक्टर की बिक्री 15% और केबल की 25% बढ़ने की उम्मीद है। चीन से प्रतिस्पर्धा और अमेरिकी मंदी जोखिम हैं।
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Read Transcript →Quarter Snapshot
Conductor EBITDA per metric ton
INR 48,453
+15% YoY
Quarterly EBITDA per ton for conductor division, up from INR 42,141 in FY24 full year.
Conductor order book
INR 6,885 crore
+20.4% YoY
Order book includes 44.8% premium products and 37% export mix.
Transformer oil volume growth
22%
+22% YoY
Transformer oil volumes grew 22% in Q4, driving overall oil division volume growth of 5%.
Cable domestic revenue growth
45%
+45% YoY
Cable domestic revenue grew 45% in FY24, offsetting U.S. slowdown.
What Changed vs Last Quarter
NEW
Conductor EBITDA per metric ton guidance of INR 28,000-28,500
Despite current higher levels, management continues to guide long-term EBITDA per metric ton at around INR 28,000-28,500 for the conductor division.
NEW
Cable revenue growth of 25% YoY
Management expects cable division to grow at 25% year-on-year in value terms over the next few years.
UPDATED
Conductor volume growth of ~15% CAGR on a medium-term basis
Management expects conductor division to grow about 15% on volume terms on a staggered basis over the medium to long term.
UPDATED
Annual CapEx of INR 350-400 crore
The company plans to incur around INR 350-400 crore in capital expenditure each year for capacity expansion across divisions.
DROPPED
Cable business CAGR of 25% for next few years
Cable business expected to grow at 25% CAGR, driven by renewable energy, railways, defense, and mining.
DROPPED
Transformer oil double-digit volume growth
Transformer oil expected to grow at double-digit rates, leading the oil vertical.
NEW RISK
Prolonged U.S. market slowdown
U.S. demand remains soft due to high interest rates and election uncertainty; recovery may take longer than expected.
NEW RISK
Potential tariff actions against Indian exports
Analyst raised concern that U.S. tariffs on Chinese aluminum could extend to India; management downplayed but acknowledged existing tariffs of 5-15%.
RISK GONE
US de-inventorying impact on cables
US customers holding high inventory levels led to flattish cable revenue; recovery expected but timing uncertain.
RISK GONE
Election-related tender delays
Upcoming Indian elections may delay awarding of transmission and BharatNet tenders by a few months.
🤫 Topics management stopped discussing
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.
Fast read
Guidance and risk preview
Management expects conductor division to grow about 15% on volume terms on a staggered basis over the medium to long term.
Chinese exporters are becoming more aggressive in Asia, Africa, and Latin America, potentially pressuring margins and market share.
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