{"id":161197,"date":"2024-05-15T12:18:53","date_gmt":"2024-05-15T16:18:53","guid":{"rendered":"https:\/\/44.250.171.167\/?p=161197"},"modified":"2024-05-15T12:18:54","modified_gmt":"2024-05-15T16:18:54","slug":"apar-industries-limited-q4-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/apar-industries-limited-q4-fy24-earnings-conference-call-insights\/","title":{"rendered":"Apar Industries Limited Q4 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Apar Industries Limited (APARINDS) Q4 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Q4 FY24 consolidated revenue grew 9% YoY to INR 4,455 crores.<\/li>\n<li>EBITDA increased 3% YoY to INR 457 crores with 10.3% margin.<\/li>\n<li>PAT declined 3% YoY to INR 236 crores.<\/li>\n<li>FY24 consolidated revenue at all-time high of INR 16,153 crores, up 13% YoY.<\/li>\n<li>FY24 EBITDA grew 24% YoY to INR 1,632 crores with 10.1% margin.<\/li>\n<li>FY24 PAT increased 29% YoY to INR 825 crores with 5.1% margin.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Industry Updates<\/strong>\n<ul>\n<li>14,203 circuit km of transmission lines added in FY24, short of 16,602 km target.<\/li>\n<li>Planned addition of 17,500 circuit km per year for next 3 years.<\/li>\n<li>70,728 MVA substation capacity added in FY24, with private sector contributing 15,000 MVA.<\/li>\n<li>Renewable energy capacity addition of 18.48 GW in FY24, highest ever.<\/li>\n<li>Total installed renewable capacity at 143.6 GW, solar at 81.81 GW.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Segments<\/strong>\n<ul>\n<li>Conductors Q4 revenue up 10% YoY, EBITDA\/ton at INR 48,453.<\/li>\n<li>Oils Q4 revenue up 3% YoY, EBITDA\/KL up 15% YoY.<\/li>\n<li>Cables Q4 revenue up 15% YoY, EBITDA margin at 11.4%.<\/li>\n<li>Oils FY24 revenue up 4% YoY, EBITDA\/KL at INR 5,746.<\/li>\n<li>Cables FY24 revenue up 18% YoY, EBITDA margin at 11.4%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Challenges and Outlook<\/strong>\n<ul>\n<li>Increased competition from Chinese exporters, routing products illegally.<\/li>\n<li>Short-term slowdown in demand due to ongoing elections.<\/li>\n<li>Optimistic about long-term growth drivers in domestic and global markets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Expansion<\/strong>\n<ul>\n<li>Ongoing capacity expansion as per plan of INR 350-400 crore capex annually.<\/li>\n<li>Expansions across rod making, alloying, stranding, CTC, busbars for conductors.<\/li>\n<li>Capacity additions happening continuously to maintain ~90% utilization.<\/li>\n<li>Current conductor capacity around 2.1-2.15 million tons, increasing by 10-15% annually.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Working Capital<\/strong>\n<ul>\n<li>Interest-bearing working capital down to ~INR 3,200 crore post QIP funds deployment.<\/li>\n<li>Working capital levels to fluctuate based on business volumes and inventory cycles.<\/li>\n<li>Quarterly interest cost expectation of ~INR 112 crore at current volumes.<\/li>\n<li>Interest to sales ratio expected to be around 2-2.5% as a benchmark.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Demand Outlook<\/strong>\n<ul>\n<li>Short-term US market demand expected to remain soft in current year.<\/li>\n<li>Long-term growth drivers intact, some project delays due to interest rate expectations.<\/li>\n<li>Healthy domestic demand driven by renewables, transmission lines, infrastructure.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Conductor Growth Outlook<\/strong>\n<ul>\n<li>Expect 15% volume CAGR over medium to long-term.<\/li>\n<li>Growth driven by new transmission lines and reconductoring projects.<\/li>\n<li>Reconductoring demand to increase due to rising power consumption.<\/li>\n<li>Export mix declined due to softness in US market last year.<\/li>\n<li>Expect export mix to improve once US demand revives.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Conductor Profitability<\/strong>\n<ul>\n<li>Guiding for INR 28,500\/ton EBITDA over long-term.<\/li>\n<li>FY24 achieved INR 42,000\/ton aided by project execution and provision writebacks.<\/li>\n<li>Margins can vary quarterly based on project mix and competitive dynamics.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Supply-Demand Dynamics<\/strong>\n<ul>\n<li>No acute supply chain issues currently for APAR&#8217;s products.<\/li>\n<li>Industry has increased capacity to meet growing demand.<\/li>\n<li>Short-term issues earlier during transition to AL-59 conductors now resolved.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cable Business Growth<\/strong>\n<ul>\n<li>Domestic cable business grew ~80% in last two quarters.<\/li>\n<li>Driven by supplies to Indian Railways, solar, wind projects.<\/li>\n<li>LDC (B2C wires) business also grew from INR 170 cr to INR 260 cr.<\/li>\n<li>Expect 25% YoY growth in FY25 as US exports revive.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Market Impact<\/strong>\n<ul>\n<li>US business ~12-13% of revenue in FY24, down from peak of 26%.<\/li>\n<li>Expects US market to remain slow in the coming year.<\/li>\n<li>Strong domestic demand offsetting US slowdown so far.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Competition<\/strong>\n<ul>\n<li>Facing Chinese competition in both conductors and cables business.<\/li>\n<li>Chinese more active in building wires segment (40% of US market).<\/li>\n<li>Also entering solar cables segment where company has good product acceptance.<\/li>\n<li>Some raids on distributors selling low-priced Chinese cables in US.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Utilization<\/strong>\n<ul>\n<li>Around 90% capacity utilization for conductor and cable divisions.<\/li>\n<li>Planning 10-15% increase in conductor capacity.<\/li>\n<li>Targeting 25% year-on-year growth in cable capacity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Outlook<\/strong>\n<ul>\n<li>Remains optimistic about growth drivers over next 3-5 years.<\/li>\n<li>Expects energy transition to provide opportunities domestically and globally.<\/li>\n<li>Overall positive outlook driven by renewable energy growth prospects.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Apar Industries Limited (APARINDS) Q4 FY24 Earnings Concall Financial Performance Q4 FY24 consolidated revenue grew 9% YoY to INR 4,455 crores. EBITDA increased 3% YoY to INR 457 crores with 10.3% margin. PAT declined 3% YoY to INR 236 crores. FY24 consolidated revenue at all-time high of INR 16,153 crores, up 13% [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[13591,9162,10169],"class_list":["post-161197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-alloy-steels","tag-aluminum","tag-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160919,"url":"https:\/\/alphastreet.com\/india\/cg-power-and-industrial-solutions-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":0},"title":"CG Power and Industrial Solutions Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 7, 2024","format":false,"excerpt":"Key highlights from CG Power and Industrial Solutions Ltd (CROMPGREAV) Q4 FY24 Earnings Concall Financial Performance Q4 FY24 sales grew 17% YoY, PBT grew 25% YoY. FY24 sales grew 16% YoY, PBT grew 24% YoY. Margins improved due to higher realizations, favorable product mix, and cost efficiencies. ROCE for FY24\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161429,"url":"https:\/\/alphastreet.com\/india\/tracxn-technologies-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":1},"title":"Tracxn Technologies Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 21, 2024","format":false,"excerpt":"Key highlights from Tracxn Technologies Ltd (TRACXN) Q4 FY24 Earnings Concall Financials Q4 FY24 revenue from operations: INR 20.3 crores. Q4 FY24 total income: INR 21.6 crores. FY24 revenue from operations: INR 82.8 crores (6% YoY growth). FY24 total income: INR 87 crores (7.2% YoY growth). Q4 FY24 EBITDA: INR\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160516,"url":"https:\/\/alphastreet.com\/india\/cyient-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":2},"title":"Cyient Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Cyient Ltd (CYIENT) Q4 FY24 Earnings Concall Industry Trends China Plus One strategy driving new opportunities in regions like India. Significant technology changes across sectors like EV, communications, AI, Industry 4.0. Overall EMS industry is massive ($1 trillion) with 5.4% CAGR. High-mix, low-volume segment focused on mission-critical\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":156600,"url":"https:\/\/alphastreet.com\/india\/knr-constructions-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":3},"title":"KNR Constructions Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 24, 2023","format":false,"excerpt":"Key highlights from KNR Constructions Limited (KNRCON) Q2 FY24 Earnings Concall Infrastructure Spending and Plans CRISIL estimates India's infrastructure spending to double from INR143 lakh crores between 2024-2030 compared to 2017-2023. Target for highway construction in FY24 increased to 13,800 km compared to 10,331 km in FY23. NHAI aims to\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":158865,"url":"https:\/\/alphastreet.com\/india\/indian-railway-catering-and-tourism-corp-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":4},"title":"Indian Railway Catering and Tourism Corp. Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 15, 2024","format":false,"excerpt":"Key highlights from Indian Railway Catering and Tourism Corp. Ltd (IRCTC) Q3 FY24 Earnings Concall Revenue Growth Q3 revenue reached highest ever at INR 1,118 crores, up 21.8% YoY and 12.4% QoQ. Catering revenue grew 29.1% YoY to INR 508 crores. Internet ticketing revenue grew 11.4% YoY to INR 335\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":158254,"url":"https:\/\/alphastreet.com\/india\/srf-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161197,"position":5},"title":"SRF Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 1, 2024","format":false,"excerpt":"Key highlights from SRF Limited (SRF) Q3 FY24 Earnings Concall Financial Performance Revenues down 12% YoY to INR 3,053 crores. EBIT down 37% YoY to INR 457 crores. PAT down 50% YoY to INR 253 crores. Weakness in chemicals and packaging films segments. Outlook Expect significant growth recovery in Q4.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/161197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=161197"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/161197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=161197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=161197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=161197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}