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Informist, Friday, Jul. 24, 2026

 

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--Apar Ind: Q1 EBITDA margin up on higher sales realisation in all 3 segments
--CONTEXT: Comments by mgmt of Apar Industries in post-earnings investor call
--Apar Ind: Conductor volume dn Q1 on aluminium price surge impacting orders
--Apar Ind: New orders in cables include copper, Q1 orders mostly aluminium
--Apar Ind: Overseas orders in conductors largely in conventional products
--Apar Ind: Domestic mkt contributed to Q1 volume fall in conductors
--Apar Ind: Margin in conventional conductors export sales more vs domestic
--Apar Ind: Wires business sales grew 46% on year in Q1
--Apar Ind: Decreased total inventory in speciality oils in the June quarter
--Apar Ind: Domestic volume in oil division down 4.4% on year in June quarter
 

 

By Rajesh Gajra and Arya S. Biju

 

MUMBAI – Apar Industries Ltd.'s conductors division volume fell 6.7% on year, mainly due to a surge in metal prices that disrupted delivery schedules for existing orders, as some customers withheld manufacturing approval as they had not hedged against the price rise, Chairman and Management Director Kushal Desai said Friday during the company's post-June quarter earnings call. Desai said the lack of hedging by these customers was primarily in aluminium, where prices rose sharply.

 

"There are some customers who are waiting for prices to come down and then hedge the metal and give manufacturing clearance," he said. In the customer contracts for conductors, there is leeway in delivery, where the end contract has to be delivered in 18-36 months, he said.

 

"We see this as temporary, because the orders have already been placed. And there is only a certain timeline to which a delay can be done, as there are very stringent penalties for the overall delay in the project execution," Desai said.

 

Most of these manufacturing clearance delays by clients were largely for conventional conductors going into the domestic market, whereas the premium products continued to get executed, he said. The revenue of the conductor division of Apar Industries increased 20% on year and fell 11% sequentially to INR 33.38 billion in the June quarter even as the volumes declined 6.7% on year and 18% on quarter.

 

Premium products contributed 50.3% of conductor sales in the reporting quarter, up from 43.7% in the year-ago quarter and 45.8% in the trailing quarter. The higher share of premium products directly helped the earnings before interest, tax, depreciation, and amortisation, excluding foreign exchange impact, in the June quarter, the management said. The EBITDA, excluding foreign exchange impact, rose 14% on year, and the EBITDA per tonne jumped up 22%.

 

But the EBITDA margin for the conductor division contracted slightly to 8.5% in the quarter from 9% in the year-ago quarter. According to a senior official, the export sales of conventional products in the conductor division fetched a higher margin than the sales of the same products in the domestic market.

 

Desai attributed this to differences in quality standards between domestic and overseas clients, with the latter having stringent acceptance criteria for the products. "So our strategy has been, which we've spoken about very much in the past, that we focus on premium products in the domestic market, and the standard product range we would rather focus on the export market," he said.

 

For the quarter, the domestic revenue in Apar Industries' conductor division rose 19% on year and declined 10% sequentially. Export sales of the division rose 22% on year and fell 16% on quarter. The export mix was 20.5% in the June quarter sales in conductors, while the domestic share was 79.5%.

 

In the company's oil division, overall volume fell 14% on year mainly because of the closure of Hamriyah port in the United Arab Emirates due to the war in West Asia, affecting shipments from the company's facility in the country. Desai said the company was only allowed to sell locally and that too only to liquidate its existing inventory.

 

But the domestic volume in the oil division declined by 4.4% on year in the reporting quarter, he said. When the June quarter started, the company was not sure since the supplies were constrained, he said. "We thought maybe there could be a larger shortfall, but in the end it was only 4.4% for us by volume," Desai said. In speciality oils, the company decreased inventory during the June quarter, the management said.

 

On the company's wires business, Desai said sales grew 46% year-on-year in the June quarter. In this new segment, the company's focus has been on increasing distributor and retailer presence, he said.

 

Apar Industries reported a consolidated net profit of INR 4.67 billion for the June quarter, up 78% on year, on the back of a 29% rise in its revenue from operations to INR 65.91 billion. Friday, the company's shares ended at INR 13,889 on the National Stock Exchange, up 3.5% from the previous closing. The company announced its quarterly results during market hours.  End

 

Edited by Saji George Titus

 

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