APAR Industries (APARINDS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached ₹4,011 crore, up 6.5% year-on-year, with domestic business growing 43.4% and exports declining 25.9% due to a high base and logistics issues.

• EBITDA rose 6.8% year-on-year to ₹394 crore (9.8% margin), and profit after tax increased 2.6% to ₹203 crore (5.1% margin).

• Export mix reduced to 37.0% in Q1 FY25 from 53.3% in Q1 FY24, with US and Europe facing regulatory and logistics challenges.

• Export shipments were disrupted in June due to container shortages, impacting dispatches across all divisions.

• Net profit for Q1 FY25 was ₹203 crore, a 2.6% increase YoY.

Financial highlights

• Conductor business revenue grew 9.1% year-on-year to ₹1,936 crore, with 6.7% volume growth; premium products made up 37.1% of revenue.

• Oil division revenue increased 6.1% to ₹1,265 crore, with transformer oil volumes up 19.9% and EBITDA per KL up 14.9%.

• Cable business revenue rose 7.8% year-on-year to ₹1,042 crore; excluding US, growth was 23.9%, with domestic up 48.4% and export mix at 33.2%.

• Overall order book stands at ₹6,725 crore for conductors (41.1% premium products) and ₹1,571 crore for cables.

• Basic and diluted EPS for the quarter: ₹50.42.

Outlook and guidance

• Management expects demand from Western nations to accelerate in the second half of FY25 as logistics normalize.

• Full-year volume growth guidance for conductors is 10%-15%; cable business targets 25% annual growth with 10%-12% EBITDA margin.

• Oil business expects continued double-digit growth in transformer and automotive oils, with margin improvement from favorable product mix.

• Confident in delivering long-term sustainable growth leveraging robust growth drivers and strategic priorities.

• Pending order book for conductors at ₹6,725 crore (41.1% premium products); cables at ₹1,571 crore.