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Apar’s Q3 FY-24 Financials: YoY Revenue Flat but PAT Up 28%

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Apar Industries Limited [NSE: APARINDS, BOM: 532259], an Indian manufacturer of conductors, specialty oils and cables, has announced its financial results for Q3 of FY-24.

Apar’s Stock Gains over 5% After Announcement of Results

Apar Industries’ closing share price was Rs. 6,068.75 apiece on 30th January 2024, which was after the company posted its financial results for Q3 of FY-24. This reflects a 5.5% jump in Apar’s share prices which were trading for Rs. 5,752.55 apiece a day prior to the announcement.

As for the volume of trades of Apar’s shares, there were 7,85,000 trades on 30th January 2024 against 1,26,000 trades on 29th January 2024. Thus the volume of trades rocketed to over 6 times on the day Apar posted its Q3 FY-24 numbers as compared to a day prior.

Apar Industries’ Standalone Financials for Q3 FY-24

Apar reported a standalone revenue of Rs. 3,746.88 crore from operations during Q3 of FY-24, and a corresponding Profit After Tax (PAT) of Rs. 205.82 crore.

Further, the company’s Earnings Per Share (EPS) stood at Rs. 53.56 for the quarter ended 31st December 2023.

Apar’s Q3 FY-24 Consolidated Financial Results

YoY Comparison of Apar’s Financial Numbers: Q3 FY-24 vs. Q3 FY-23

Comparison of Apar’s Revenue: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

On a Year-over-Year (YoY) basis, Apar’s Q3 revenue from operations remained almost flat, growing meagrely by 1.88% to Rs. 4,013.16 crore in FY-24 from Rs. 3,938.92 crore in FY-23.

Apar’s Q3 PAT during FY-24 was Rs. 217.57 crore against Rs. 169.90 crore in FY-23. This reflects a YoY increase of 28.06% in Apar’s profit.

In proportion, Apar’s EPS stood at Rs. 56.62 for Q3 of FY-24 against Rs. 44.40 during Q3 of FY-23.

QoQ Comparison of Apar’s Financials: Q3 FY-24 vs. Q2 FY-24

Comparison of Apar’s PAT Revenue: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

Apar Industries’ Q3 FY-24 revenue from operations was 2.23% higher than its Q2 FY-24 revenue, which stood at Rs. 3,925.46 crore.

PAT of the company grew by 25.13% on a QoQ basis from Rs. 173.88 crore logged during Q2 of FY-24.

Apar Attributes Slow Growth to Drop in US Sales

In its presentation for the company’s Q3 FY-24 financials, Apar Industries attributed muted YoY Q3 revenue growth to ‘de-inventorising’ by US-based customers. The company clarified that excluding the US, Q3 revenue grew by 17.2% from FY-23 to FY-24.

There has also been a drop in the company’s exports, with 39% of Apar’s Q3 FY-24 revenue coming from exports against 50.2% during Q3 of FY-23.

Segment-Wise Revenue Analysis: Q3 FY-24 vs. Q3 FY-23

Comparison of Apar’s Financials: Q3 FY23 vs Q3 FY24

Conductors: Apar’s Conductors business brought in Rs. 1,985.46 crore during Q3 of FY-24, which is 4.05% higher than the Rs. 1,908.09 crore revenue from this segment earned during Q3 of FY-23.

This segment contributed the largest share to the company’s gross revenue*, that is 47.44%.

The company stated that excluding sales in the US, the company’s YoY Q3 growth in this segment stood at 28.3% from FY-23 to FY-24. Further, exports contributed 40.2% to Apar’s revenue from this segment during Q3 of FY-24.

Apar highlighted that there was a healthy domestic demand for Aluminium and High-Temperature Low Sag (HTLS) conductors and rods.

As for the order inflow, Apar received conductor orders worth Rs. 1,896 crore during Q3 of FY-24.

*Gross revenue refers to the sum of segmental revenues without deducting any inter-segmental revenue.

Transformer & Speciality Oils: This segment earner Apar a revenue of Rs. 1,244.23 crore during Q3 of FY-24, which is almost the same on a YoY basis. In Q3 of FY-23, the company’s revenue was Rs. 1,241.23 crore from its Transformer & Speciality Oils business, reflecting a 0.24% increase YoY.

Apar acknowledged this YoY stagnation in revenue from this segment, but clarified that volume of sales was up by 8% YoY. Further exports in this segment contributed 44.3% of the company’s Q3 FY-24 segmental revenue.

Power / Telecom Cables: Power and Telecom cables contributed Rs. 924.04 crore to the company’s Q3 FY-24 sales against Rs. 921.09 crore to Apar’s Q3 FY-23 revenue. Therefore, revenue from this segment almost remained flat, increasing merely by 0.32% YoY.

In this segment as well, the company’s Q3 ex-US sales were higher, growing by 24.1% from FY-23 to FY-24. “Revenue is flattish on YoY due to high base of US sales in LY (Last Year)”, stated Apar in its earnings presentation for Q3 of FY-24.

Further, there was a drastic fall Apar’s Q3 cable exports, which contributed 30.6% of the sales in FY-24 against 60.1% during FY-23.

Moreover, the company’s cable order book stands at Rs. 1,124 crore as of 31st December 2023.

About Apar Industries Limited: Established in 1958, Apar Industries Ltd. has its presence in over 125 countries. Apar’s portfolio comprises manufacture and supply of conductors, transmission cables, specialty oils, polymers, and lubricants.