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Apar Industries’ FY-24 Financial Results: Revenue Jumps 13%, PAT Up 29% YoY

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Apar Industries Limited [NSE: APARINDS, BOM: 532259], an Indian manufacturer of cables, conductors and speciality oils, has announced its financial results for Q4 of FY-24 and FY-24.

Apar Industries’ Standalone Financials: Q4 of FY-24 and FY-24

Apar Industries reported a standalone revenue of Rs. 4,225.59 crore from operations during Q4 of FY-24 and a Profit After Tax (PAT) of Rs. 238.44 crore during the last quarter of FY-24. Further, the company’s Earnings Per Share (EPS) during Q4 of FY-24 stood at Rs. 61.54.

For the entire FY-24, Apar’s revenue from operations was Rs. 15,109.28 crore and PAT was Rs. 823.28 crore. Moreover, Apar Industries’ EPS was reported as Rs. 211.63 for FY-24.

Consolidated Financial Results of Apar Industries: Q4 of FY-24 and FY-24

YoY Comparison of Apar Industries’ Financials: Q4 FY-24 vs. Q4 FY-23 & FY-24 vs. FY-23

Comparison of Apar’s Revenue: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

Apar Industries’ revenue grew Year-over-Year (YoY) by 9.08% to Rs. 4,455.11 crore in Q4 of FY-24 from Rs. 4,084.33 crore during Q4 of FY-23. Further, the company clocked a PAT of Rs. 236.22 crore during Q4 of FY-24 which is 2.68% lower YoY than the Rs. 242.73 crore profit recorded for Q4 of FY-23.

Comparison of Apar’s PAT: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

Considering the full financial year, in FY-24, Apar Industries generated a top-line of Rs. 16,152.98 crore which is 12.67% higher than the company’s Rs. 14,336.30 crore revenue reported for FY-23. The company’s PAT also grew significantly by 29.38% to Rs. 825.11 crore during FY-24 against Rs. 637.72 crore in FY-23.

Moreover, the company’s Q4 FY-24 EPS stood at Rs. 60.97, and for the entire financial year 2023-24, Apar Industries’ EPS was reported as Rs. 212.10.

Apar’s Revenue Comparison: Q3 FY24 vs Q4 FY24
Apar’s PAT Comparison: Q3 FY24 vs Q4 FY24

QoQ Comparison of Apar Industries’ Financial Figures: Q3 FY-24 vs. Q4 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue jumped by 11.14% from Rs. 4,008.53 crore during Q3 of FY-24. Further, Apar Industries’ quarterly PAT increased by 8.57% QoQ from Rs. 217.58 crore, which was reported for Q3 of FY-24.

Apar Industries’ Segment-Wise Revenue Comparison

Apar’s Segment-wise Financials: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

Conductors: This segment of the company bought in a major portion of Apar Industries’ FY-24 revenue. Considering the entire FY-24, Apar Industries’ generated 47.66% of gross revenue* from its Conductors business.

*Gross revenue of a company represents the total of segmental revenues before subtracting inter-segmental revenue.

Apar’s conductors segment revenue was Rs. 2,328.04 crore during Q4 of FY-24 as compared to Rs. 2,121.31 crore during Q4 of FY-23. This reflects an increase of 9.74% YoY in conductors segment Q4 revenue of the company. During entire financial year 2023-24, the company’s revenue from this segment grew by 14.51% to Rs. 8,030.98 crore against Rs. 7,013.05 crore during FY-23.

Transformer and Speciality Oils: During the closing quarter of FY-24, Apar Industries generated Rs. 1,210.31 crore as revenue from its Transformer and speciality oils segment. This shows a slight increase of 3% from its Rs. 1,175.14 crore revenue clocked from this segment during Q4 FY-23.

In its investor presentation, the company noted that for speciality oils and lubricants, profitability during Q4 of FY-24 was impacted by a ‘higher weighted average cost of inventory due to delay in shipments in previous quarter’.

For entire FY-24, Apar Industries’ segmental revenue from its Transformer and Speciality Oils business stood at Rs. 4,836.93 crore which was up by 4.23% from Rs. 4,640.84 crore revenue earned by the company from this segment during FY-23.

During FY-24, exports of speciality oils and lubricants contributed 45.8% to the company’s segmental revenue as compared 44.8% during FY-23.

Power/Telecom Cables: Apar Industries’ Power/Telecom Cables business bought in a revenue of Rs. 1,085.83 crore during Q4 of FY-24, which reflects a robust increase of 15.15% from the Rs. 942.97 crore revenue earned during Q4 of FY-23.

During entire FY-24, the company’s revenue from this segment increased by 18.25% to Rs. 3,858.88 crore from Rs. 3,263.45 crore in FY-23.

During the company’s earnings call for Q4 of FY-24, Mr. Kushal Desai, Chairman and Managing Director of Apar Industries, said “On the distribution side, which is primarily the Cables, you have drivers coming from the addition of infrastructure in the Indian Railway, from Defence, from the renewable energy sources, which is both solar and wind, where APAR has a significant presence”.

Apar Industries’ Share Prices 7% Up After Announcing FY-24 Financials

Apar Industries’ share price jumped by 7.04% on the day of announcement of Q4 of FY-24 and FY-24 financial results as compared to the previous trading day.

Further, volume of share trades of the company peaked at 5,88,000 trades on the day that the company announced its FY-24 financials against 91,000 trades a day before the company announced its results.

“Consolidated Revenue Posted an All-Time High”-Apar’s CMD

During the company’s earnings call, Mr. Kushal Desai, said “Considering the 12 months, the consolidated revenue posted an all-time high revenue growing at 13% year-on-year”. He attributed this growth in revenue to increase in the volume of sales across the company’s business segments. Mr. Desai also said that the company’s order book stood at Rs. 6,885 crore as on 31st March 2024, out of which cable business order book was at Rs. 1,436 crore.

During the entire FY-24, exports contributed 45.2% of Apar Industries’ total revenue as compared to 48.8% contribution by exports in FY-23.

Mentioning the CapEx, Mr. Desai said that the company is continuing its strategy to invest about Rs. 350 crore to Rs. 400 crore YoY. He also mentioned that a ‘substantial’ amount out of this will be invested for expanding Copper transposed conductor and transformer oil production. Copper transposed conductors and transformer oil are used in transformers, the demand for which, as per Mr. Desai, is on the rise on account of increased investment in substation architecture.

Apar Industries Limited: Apar Industries Ltd. was founded in 1958, and has its presence in over 125 countries as a supplier of conductors, transmission cables, specialty oils, polymers, and lubricants.