Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Apar Industries Ltd (BOM:532259) achieved an all-time high quarterly revenue, crossing 5,000 crores for the first time.
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The company's domestic business demonstrated strong growth, with a 31.4% increase compared to the previous year.
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The US business showed significant improvement, with revenue increasing by 195.6% year-on-year.
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The cable business posted a strong revenue growth of 29.9% in Q4 FY25, driven by domestic demand and increased shipments to the US.
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Apar Industries Ltd (BOM:532259) is planning substantial CapEx of 1,300 crores over the next 12 to 15 months to expand capacity across its business segments.
Negative Points
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Exports as a percentage of total revenue decreased from 45.2% in FY24 to 32.8% in FY25.
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The company faces challenges from increased Chinese competition in non-US markets, impacting export growth.
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There is an overhang of US tariffs, which could impact future sales until a bilateral trade agreement is reached.
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The company experienced issues with right of way constraints and land acquisition hurdles, affecting growth in the transmission line network.
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The EBITDA margin for the cable business slightly decreased by 0.7% compared to Q4 FY24.
Q & A Highlights
Q: What explains the strong profit despite selling non-premium conductors in the domestic market? A: Unidentified_5: In Q4, 45% of products were premium, excluding AL 59, which is categorized as non-premium but still offers higher margins than conventional products. The rebound in the US business, where margins are higher, also contributed to the strong profit. Additionally, the copper business is scaling up, enhancing overall margins.
Q: How is the uncertainty in the US market affecting sales, and what is the outlook for Q1? A: Unidentified_3: Despite uncertainty, the cable side continues with green signals for production planned for April to June, as tariffs are paused until July 9. Some customers are willing to pay differential tariffs post-July 9 to complete projects. Thus, a substantial dip in Q1 is not expected. Many products are already in transit, and revenue will be booked in Q1 FY26.
Q: Can you provide insights into the growth of conductor exports outside the US market? A: Unidentified_7: Outside the US and India, markets remain weak due to aggressive Chinese competition. The domestic market in India is performing well, and efforts are being made to improve on-ground presence in the US, including hiring employees and signing distribution agreements.