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Apar’s Stellar Q3 YoY Growth: Revenue Shoots 76.88%, PAT Grows over 300%

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Apar Industries Limited [NSE: APARINDS, BOM: 532259], a major Indian player in areas of conductors, cables, speciality oils and lubricants, has announced its financial results for the third quarter of the 2022-23 financial year.

Apar’s Q3 FY-23 Standalone Financial Figures

For the quarter ended 31st December 2022, Apar reported Rs. 3,627.23 crore as its standalone revenue from operations.

Correspondingly, the company’s Profit After Tax (PAT) for Q3 of FY-23 stood at Rs. 157.86 crore.

Apar’s Consolidated Financial Performance for Q3 of 2022-23

YoY Comparison of Apar’s Financials: Q3 FY-23 vs. Q3 FY-22

Comparison of Apar’s Financials: Q3 FY-22 vs Q3 FY-23 vs Q2 FY-23

On a Year-over-Year (YoY) basis, Apar’s consolidated revenue from operations exhibited an impressive growth of 76.88% to Rs. 3,942.37 crore clocked during Q3 of FY-23. The company’s revenue for the corresponding quarter in the previous fiscal stood at Rs. 2,228.83 crore.

Apar has attributed this growth in revenue to increase in order volumes, including export orders, across its conductor and cable segments. The company’s Q3 exports revenue grew aggressively by 144% YoY, with the share of exports in Q3 of FY-23 revenue being 49% as against 35% in Q3 of FY-22.

Apar’s Q3 PAT showed an impressive threefold growth YoY, to Rs. 169.90 crore in FY-23 from Rs. 54.96 crore recorded for the previous financial year.

QoQ Comparison of Apar’s Financial Results: Q3 FY-23 vs. Q2 FY-23

Apar’s revenue from operations exhibited a robust growth by 21.87% on a Quarter-over-Quarter (QoQ) basis from Rs. 3,234.88 crore earned during the quarter ended 30th September 2022.

The company’s PAT also reflected an upward trend, soaring by 65.55% QoQ from Rs. 102.63 crore earned during Q2 of the ongoing fiscal.

Apar Industries’ Segment-wise Consolidated Revenue

Revenue in Rs. cr.

Apar Industries’ Segment-wise Revenue Comparison: Q3 FY22 vs Q3 FY23 vs Q2 FY23

Conductors: With a 48.49% contribution, this segment forms the bulk of Apar’s Q3 FY-23 revenue from operations. For the quarter ended 31st December 2022, the company clocked a segmental revenue of Rs. 1,911.54 crore from conductors.

YoY, the company’s conductor segment revenue has more than doubled, growing by a staggering 103.28% from Rs. 940.37 crore earned in Q3 of FY-22.

Exports contributed 54% to this segment’s revenue in Q3 of FY-23 against a contribution of 29% during Q3 of FY-22.

On a QoQ basis, Apar’s conductor segment revenue has grown by 32.85% from Rs. 1,438.88 crore, which was clocked during Q2 of the current fiscal.

Moreover, Apar’s Q3 order inflow in this segment grew by 6% YoY to Rs. 1,993 crore. The company’s conductor order book as of now stands at Rs. 4,885 crore worth of orders, to which Apar’s premium products contribute about 44%. Apar’s premium conductor products comprise High-Efficiency Conductors (HECs), Copper Conductors, Optical Ground Wire (OPGW) and Continuously Transposed Conductor (CTC).

Transformer and Speciality Oils: With a share of 31.58% in the company’s total revenue from operations, transformer and specialty oils segment is the second largest contributor to Apar’s Q3 FY-23 top line. For the quarter ended 31st December 2022, Apar’s revenue from this segment stood at Rs. 1,245 crore.

This reflects a healthy YoY increase of 37.52% from the company’s Rs. 905.33 crore Q3 FY-22 transformer and speciality oils revenue. This growth has been credited to increase in the volume of orders and base oil prices. The share of exports to Apar’s revenue from this segment was 43% during Q3 of FY-23.

QoQ growth in revenue from this segment has been slight, growing by 5.88% from Rs. 1,175.81 crore, which was earned in Q2 of FY-23.

Power / Telecom Cable: Apar’s revenue from its cable business stood at Rs. 921.09 crore for the third quarter of FY-23.

This translates to an impressive 89.46% growth in segmental revenue YoY, from Rs. 486.16 crore, which was reported for Q3 of FY-22. This almost two-fold revenue has been attributed to increase in the company’s exports and sale of elastomeric products. In Q3 of FY-23, exports brought in 49% of the company’s cable revenue as against 35% in Q3 of the previous fiscal.

Apar’s elastomeric cables saw an increase in demand from Renewable Energy (RE) projects, and revenue earned from the sale of these cables grew by 29% YoY.

QoQ, the company’s cable segment revenue has grown by 20.94% from Rs. 761.59 crore which was clocked during the quarter ended 30th September 2022.

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.