Apar Industries Limited
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12turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
14.1%
60%
49%
33%
INR 4,200 crore
13.3%
INR 17,095
INR 343 crore
Rs 1,200
30%
25%
Guidance — 1 items
Manufactures
opening
“Speciality oil Corporate Presentation – January 2023 12 Conductors – One of the largest global manufacturers ACCC OPGW Copper Railway conductors CTC Turnkey Solutions Strong leadership & competitive edge Strategic focus on higher-value products (49% in FY22 up from 33% in FY21) FY22 revenue of INR 4,200 crore, 5 years CAGR at 13.3% Adj.”
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Risks & concerns — 5 flagged
China Plus One Risk diversification with increased manufacturing capabilities • New market access Carbon Neutrality Adoption of diverse renewable energy solutions Consolidation of supplier base Organized businesses, higher compliance Corporate Presentation – January 2023 30 Strategic outlook 1 5 Product diversification with focus on premium offerings Renewable energy power infrastructure – significant increase in products & capacities for solar, wind and power telecom convergence.
— Manufactures
o Customers preferring parties they can depend upon including ability to have a strong risk management framework.
— This includes
o Tight audit requirements, documentation & transparency making some of the weak players ineligible.
— This includes
Exports mix in total oil division – 45% Corporate Presentation – January 2023 38 Well-defined Risk Management framework in existence Customer / Credit Risk Management: o Structured process of evaluating customer & end customer background.
— This includes
Forex & Interest rate Risk Management: o Defined methodologies to hedge forex based on natural hedges and forward covers.
— Metal Hedging Risk Management
Speaking time
9
1
1
1
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Opening remarks
APAR today targets
Power Transmission & Distribution (T&D) and Renewable Energy sectors through Conductors, Cables and Transformer oils (T-oils) Railways Defence through Copper Catenary Conductors, XLPE & Elastomeric cables & Harnesses through Elastomeric Cables & Specialty Cables Automotive by Auto Lubes and Automotive Cables Telecom through Optical Fiber Cables (OFC) Corporate Presentation – January 2023 10 APAR Group – House of Brands Corporate Presentation – January 2023 11 APAR’s State-of-the-Art facilities strategically located
Manufactures
Speciality oil Corporate Presentation – January 2023 12 Conductors – One of the largest global manufacturers ACCC OPGW Copper Railway conductors CTC Turnkey Solutions Strong leadership & competitive edge Strategic focus on higher-value products (49% in FY22 up from 33% in FY21) FY22 revenue of INR 4,200 crore, 5 years CAGR at 13.3% Adj. EBITDA* per MT at INR 17,095 in FY22 INR 343 crore invested in FY16-FY22 o Largest manufacturer in India o Pioneer in aluminium alloy rod & conductors o Technology tie-up with CTC-Global, USA, for ACCC conductors o One of the first to test successfully 765KV & 800KV conductors in India o Supplies to all top 25 global turnkey operators and leading utilities o Manufacturing since 1958 o Jharsuguda, Odisha plant. Logistical benefits with proximity to smelters, capture growing generation capacity in eastern India o Aluminium rod facility at Lapanga, Orissa o Agreement with Hindalco for sourcing molten metal, cost saving of Rs 1,200 / MT o New products launc
This includes
o Publishing first APAR’s TCFD report Download o Verified scope 1 & scope 2 GHG emissions by a renowned independent assurance provider CREATED SEPARATE ENVIRONMENT POLICIES • Air Pollution • Biodiversity Policy • Climate Change Policy Environment Policy • Goods & Services • Material & Chemical Waste • Water *All policies are part of sustainability framework Download o Made it to CRISIL ESG rating (ranked 3rd among industrial sector) o Submitted a voluntary disclosure to CDP on climate change o Company wide disclosure on sustainability was made to EcoVadis Corporate Presentation – January 2023 32 Doing good for society Located in Nadiad, Gujarat Dr. N.D Desai Faculty of Medical Science & Research Anamrita Foundation Free Multispeciality hospital with 800+ beds 37,000+ patients have received free treatment 5,90,000+ OPD cases done free of cost Established in 1968, most renowned in Gujarat Offers courses to 8,000+ students annually 1,00,000+ receive quality dental care every year Oral can
Metal Hedging Risk Management
o Well-established principles for hedging of Aluminium and Copper. o Prompt hedging of metals based on pricing formula. o Process ensures gain/loss of metals is appropriately passed on to customers. Forex & Interest rate Risk Management: o Defined methodologies to hedge forex based on natural hedges and forward covers. o Tight monitoring on working capital to minimise interest outgo. o Forex related costs & working capital interest forms an integral part of customer pricing ensuring complete costs pass thru. Corporate Presentation – January 2023 39 Telecom Vision CONNECTED WORLD with near ZERO LATENCY CLOUD SHIFT from HYPERSCALE to EDGE BLOCKCHAIN shaping WEB 2.0 to WEB 3.0 Market Dynamics Massive Digital Transformation across Industries CONVERGED NETWORKS DATA CENTERS RURAL CONNECTIVITY 5G/IOT/M2M Multiple Investments Coinciding in Next 5-7 years OFC SOLUTIONS LAN & 5G SOLUTIONS CONVERGENCE SOLUTIONS NETWORK SERVICES CURRENT & NEW CUSTOMERS across GLOBAL MARKETS Focus Areas Portfolio
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