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Apar’s Q2 Revenue Up 42.56%, PAT Shoots 80.4% YoY. Big Jump in Exports

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Apar Industries Limited [NSE: APARINDS, BOM: 532259], an Indian manufacturer of conductors, speciality oils and cables, has announced its financial results for the quarter ended 30th September 2022.

Apar’s Standalone Financials for Q2 FY23

Apar clocked Rs. 2,910.71 crore as its standalone revenue from operations during the second quarter of the current fiscal.

Profit After Tax (PAT) for the corresponding period was reported as Rs. 111.62 crore by the company.

Apar’s Consolidated Financials Exhibit an Upward Trajectory

YoY Comparison of Apar’s Financial Performance: Q2 FY-23 vs. Q2 FY-22

Comparison of Apar’s Financials: Q2 FY-22 vs Q2 FY-23 vs Q1 FY-23

On a Year-over-Year (YoY) basis, the company’s Q2 consolidated revenue from operations exhibited a remarkable 42.56% growth to Rs. 3,234.88 crore in FY-23 from Rs. 2,269.09 crore in FY-22.

Apar’s Q2 PAT rocketed to Rs. 102.63 crore in the current fiscal from Rs. 56.89 crore in 2021-22. This reflects a staggering 80.4% YoY increase.

QoQ Comparison of Apar’s Financials: Q2 FY-23 vs. Q1 FY-23

Quarter-over-Quarter (QoQ) comparison of the company’s financial performance shows a 4.58% increase in revenue from operations from Rs. 3,093.23 crore reported for Q1 of FY-23.

There was a 16.19% decrease in Apar’s PAT from Rs. 122.46 crore which was earned during Q1 of the current fiscal.

Apar Industries’ Segment-Wise Renvenue

Apar Industries’ Segment-wise Revenue Comparison: Q2 FY22 vs Q2 FY23 vs Q1 FY-23

Conductors: This segment contributed Rs. 1,438.88 crore, translating to a 42% share in the company’s revenue during the quarter ended 30th September 2022.

On a YoY basis, this is 33.16% higher than the Rs. 1,080.59 crore conductors segment revenue earned in Q2 of the previous fiscal.

As per the company’s investor presentation, Apar’s premium products and exports in this segment have fueled this YoY increase in revenue. Exports shot up by 97% YoY, and contributed 46% to the company’s conductors segment revenue. In the same quarter of the previous fiscal, the share of exports in Apar’s revenue from this segment was 32%.

From Q1 to Q2 of 2022-23, Apar’s revenue from this segment exhibited a slight decrease of 7.06%. The company’s conductors business had recorded Rs. 1,548.22 crore as revenue for the Q1 of the current financial year.

Apar has stated that there has been new order inflow of Rs. 1,468 crore in the Conductors segment during Q2 of FY-23. This figure has increased by 67% on a YoY basis.

In Q2 of FY-23, Apar was added to Power Grid Corporation of India’s (PGCIL’s) list of approved vendors for transformer conductors.

Speciality Oils and Lubricants: This segment contributed about 35% to the company’s Q2 FY-23 revenue.

In this segment too, the company’s YoY revenue exhibited an upward trend. There was an increase of 31.35% in Apar’s revenue from the Oils and Lubricants segment, to Rs. 1,175.81 crore clocked during Q2 FY-23 against Rs. 895.20 crore earned during Q2 of the previous fiscal.

Moreover, Apar’s revenue from this segment increased by 10.1% QoQ from Rs. 1,067.98 crore, which was earned during Q1 of FY-23.

Apar has stated that this increase in revenue was primarily due to base oil prices, since the volume of speciality oils sold remained largely the same on a YoY basis. In this segment, exports contributed 47% to the company’s revenue.

Power / Telecom Cable: While the cables segment contributed only about 22% to the company’s revenue during Q2 of FY-23, Apar recorded the most impressive increase in revenue from its cable business. The company’s Q2 cable revenue grew by 79.13% YoY, to Rs. 761.59 crore during FY-23 from Rs. 425.17 crore in FY-22.

On a QoQ basis, revenue from the cables segment was up by 19.41%, from Rs. 637.80 crore clocked during the quarter ended 30th June 2022.

Exports contributed 50% of the company’s sales in this segment during Q2 of FY-23. In contrast, exports accounted for 29% of Apar’s cable segment revenue in the corresponding period of the previous fiscal.

Apar also stated that there was a rise in the sale of elastomeric cables by 55% on a YoY basis. This increase is due to an increased amount of orders from the renewable energy, defence and railways sectors.

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.