Apar Industries Limited, a leading manufacturer of conductors, specialty oils, and cables, has reported robust financial results for the first quarter. The company's performance was marked by significant growth across its key business segments, particularly in the domestic market.

Strong Financial Performance

Apar Industries delivered impressive quarterly results with revenue growing 27.3% year-on-year to Rs. 5,104.00 crores. The company's EBITDA increased by 27% to Rs. 501.00 crores, maintaining a healthy margin of 9.8%. Profit after tax saw a substantial rise of 30%, reaching Rs. 263.00 crores.

Segment-wise Performance

Conductor Division

The conductor division led the growth with a remarkable 43.9% revenue increase. This was supported by an improved product mix and an 18% volume growth. Notably, premium products contributed 43.5% of conductor revenue, up from 37.1% in the previous year.

Cable Segment

The cable segment posted strong results with a 36.3% revenue growth, reaching Rs. 1,419.00 crores. The US market performance was particularly impressive, growing 136% year-on-year.

Specialty Oil Division

In the specialty oil division, transformer oil volume was higher by 7.4%, with domestic transformer oil volume growing by almost 20%.

Export Performance

Export revenues contributed 31.6% to the total turnover, indicating Apar's strong presence in international markets. The US market showed significant growth, particularly in the cable segment.

Order Book and Future Outlook

Apar Industries maintains a robust conductor order book of Rs. 7,779.00 crores and received new orders worth Rs. 3,135.00 crores during the quarter. This strong order book position bodes well for the company's future performance.

Management Guidance

The management continues to guide for 25% value growth in cables and 10% volume growth in conductors. They also maintain an EBITDA guidance of Rs. 30,000.00 plus tailwinds per metric ton for conductors.

Conference Call Highlights

In a conference call, Apar Industries' management discussed the Q1 results and provided insights into various aspects of the business:

• The company highlighted strong growth in the domestic business, particularly in the conductor and cable segments.
• Apar's US revenues in the conductor division grew by almost 83% over the same quarter in the previous year.
• The management noted that the export mix in the oil business came down to 36.7% from the usual 40%+, which they expect to be a temporary situation.
• The company is maintaining its CAPEX plans of about Rs. 1,300.00 crores, with Rs. 150.00 crores already incurred in Q1.

Apar Industries' strong performance in Q1, coupled with its robust order book and positive management outlook, positions the company well for continued growth in the coming quarters. The company's focus on premium products and expansion in both domestic and international markets appears to be yielding positive results.

Apar Industries Limited , a global leader in the electrical and energy infrastructure sector, has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

The company reported consolidated revenue of ₹5,104.00 crores for Q1, marking a substantial increase of 27.3% compared to the same period last year. Profit after tax (PAT) saw an impressive growth of 29.9%, reaching ₹263.00 crores with a margin of 5.2%.

Segment-wise Performance

Conductors

Transformer and Specialty Oils

Power/Telecom Cables

Operational Performance

The company's EBITDA margin after forex adjustments stood at 9.8%, unchanged from the same quarter last year but higher by 0.5% sequentially. This stability in margins, coupled with significant revenue growth, indicates improved operational efficiency.

Domestic and Export Performance

The domestic business showed strong performance with 38.3% growth, highlighting Apar Industries' strong position in the Indian market. Meanwhile, the export contribution stood at 31.6%, reflecting the company's continued focus on international markets.

Order Book

The company's order book for conductors remains robust at ₹7,779.00 crores, providing visibility for future revenue growth and indicating strong market demand for Apar Industries' products.

Future Outlook

With a strong start to the fiscal year, Apar Industries appears well-positioned for continued growth. The company's ability to maintain margins while significantly increasing revenue suggests effective cost management and pricing strategies. The robust order book in the conductors segment also provides a solid foundation for future performance.

Apar Industries' Q1 results reflect its resilience and strategic positioning in the global electrical and energy infrastructure market. As the company continues to capitalize on both domestic and international opportunities, it seems poised for sustained growth in the coming quarters.