Apar’s Consolidated Financial Results
YoY Comparison of Apar’s Financials: Q1 FY-23 vs. Q1 FY-22
In the first quarter of 2022-23, Apar’s revenue from operations rose by 70.93% to Rs. 3,093.23 crore from Rs. 1,809.62 crore which was recorded for the same period in the previous fiscal.
Profit After Tax (PAT) of the company during Q1 also showed an upward trend, rising by 96.6% to Rs. 122.46 crore for Q1 FY23 as against Rs. 62.29 crore for Q1 of previous financial year.
It must be noted that Q1 FY22 performance of Indian Industry was severely impacted by the 2nd wave of Covid.
QoQ Comparison of Apar’s Financial Performance: Q1 FY-23 vs Q4 FY-22
Apar’s revenue from operations registered a meagre increase of 2.68% from Rs. 3,012.45 crore clocked during Q4 FY22.
The company’s PAT on a Quarter-over-Quarter (QoQ) basis showed a healthy growth of 48.24% though, from Rs. 82.61 crore recorded for the last quarter of FY-22.
Apar Industries’ Segment-wise Revenue
Conductors: Apar’s revenue from its conductors segment showed an impressive increase of 127.84% to Rs. 1,548.22 crore clocked in Q1 of FY-23 from Rs. 679.53 crore registered during Q1 of the previous fiscal. Apar has stated that this massive increase is due to increase in volume of orders as well as higher metal prices.
On a Quarter-over-Quarter (QoQ) basis, Apar’s revenue from this segment went up by a slight margin of 2.98% from Rs. 1,503.36 crore recorded for Q4 of FY-22.
Q1 FY23 exports were up by 120% on a Year-over-Year (YoY) basis, and they contributed 42% to the company’s conductors revenue in the first quarter of FY-23. In contrast, in Q1 of FY-22, exports contributed 46% to Apar’s conductors segment revenue.
As per the company’s Investor Presentation, Apar had a new order inflow for its conductors segment worth Rs. 2,017 crore during the quarter ended 30th June 2022, which is a 30% jump on a YoY basis.
Transformer and Speciality Oils: Apar’s Transformer and Speciality Oils segment contributed Rs. 1,067.98 crore to the company’s revenue in Q1 of FY-23. This shows a healthy 28.4% YoY growth from Rs. 831.74 crore revenue clocked by this segment during the same period in 2021-22.
QoQ growth of revenue was 15.06% from Rs. 928.17 crore reported for the last quarter of FY-22.
In this segment, Apar’s exports contributed 44% to the revenue. The company stated that it expects a better volume of transformer oil orders.
As a recent development of the company in this segment, Apar signed a Memorandum of Understanding (MoU) with Saudi Aramco’s subsidiary, Luberef, for building a speciality oils plant in Kingdom of Saudi Arabia.
Power / Telecom Cables: Revenue from the cables segment of the company registered a remarkable 59.55% YoY increase to Rs. 637.80 crore in the first quarter of 2022-23 as against Rs. 399.76 crore during Q1 of FY-22.
In comparison with Q4 of the previous fiscal, Apar’s revenue from this segment showed a 6.57% decrease QoQ from Rs. 682.65 crore.
Apar stated that all cable sub-segments exhibited healthy YoY growth, except for Optical Fibre Cable sub-segment, which was adversely impacted by slow pace of the telecommunications business.
Contribution of cable exports to the Cable-segment sales was 43% in Q1 of FY-23 in contrast to 19% during the first quarter of FY-22. The company also stated that XLPE cable revenue increased by 60% YoY because of increased exports.
About Apar Industries Ltd.: Apar Industries Ltd. was founded in 1958, and has its presence in over 125 countries as a supplier of conductors, transmission cables, speciality oils, polymers and lubricants.