One of the midcap market leader stocks engaged in manufacturing and supplying a diverse range of products, including aluminium conductors, transformer oils, and renewable cables, positioning itself as a leader in the electrical equipment sector globally. The stock has plunged by 20 percent after reporting weak December quarterly results. The company’s net profit has decreased by 19.60 percent YOY, despite a 17.66 percent YOY increase in revenue.
Stock Price Movement
With a market capitalization of Rs. 28,811.13 crores, the shares of Apar Industries Ltd stock plunged by 20 percent, reaching a lower circuit of Rs. 7,172.60 per share on Tuesday, down from its previous closing price of Rs. 8,965.75 per share.
Q3 FY25 Result Walkthrough
Coming into the quarterly results of Apar Industries Limited, the company’s consolidated revenue from operations increased by 17.66 percent YOY, from Rs. 4,008.53 crore in Q3 FY24 to Rs. 4,716.42 crore in Q3 FY25, and grew slightly by 0.84 percent QoQ from Rs. 4,677.29 crore in Q2 FY25.
The company earned revenue from conductors by 49.13 percent (Rs. 2449.13 crores), transformers and speciality oils by 24.71 percent (Rs. 1,231.76 crores), power or telecom cables by 25.40 percent (Rs. 1,266.08 crores) and other operating income by 0.77 percent (Rs. 38.26 crores) in Q3 FY25.
The company’s EBITDA dropped 12 percent YoY to Rs. 355.4 crore, with margins narrowing by 250 basis points to 7.5 percent from 10 percent last year.
In Q3 FY25, Apar Industries Limited’s consolidated net profit decreased by 19.60 percent YOY, reaching Rs. 174.92 crore compared to Rs. 217.57 crore during the same period last year. As compared to Q2 FY25, the net profit has also decreased by 9.78 percent, from Rs. 193.88 crore.
The basic earnings per share decreased by 23.08 percent and stood at Rs 43.55 as against Rs 56.62 recorded in the same quarter in the previous year 2024.
Financial Highlights in Q3 FY25
Apar Industries reported strong financial performance in Q3 FY25, with significant growth across its segments. The conductor business saw a 23.4 percent increase in revenue, driven by a 54.5 percent rise in domestic business and a 19 percent increase in volume. The order book remains robust at Rs. 7,601 crores.
Further, speciality oils experienced a slight decline of 0.6 percent in revenue, though volume grew by 4.8 percent, with notable growth in global transformer oil (6.3 percent) and
automotive oil (13.5 percent). Cable Solutions revenue surged by 37 percent, with domestic revenue up 30.4 percent, indicating solid market demand and business expansion.
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Management commentary on exports
The management attributed the decline in margins to unfavorable competitive prices from China and reduced demand for exports. “We are hopeful that export demand will improve,” Chairman & MD Kushal N Desai stated, expressing optimism for a rebound in export performance shortly.
Technical analysis of the company
Apar Industries Limted’s RSI is currently at 18.76, indicating it is in the oversold zone, suggesting potential for a price rebound. The stock is trading 39.20 percent below its 52-week high of Rs. 11,797.35. Additionally, it is below both the 50-day and 200-day moving averages, indicating a bearish trend in the short and long term.
Global footprint and manufacturing facilities
The company has exported to over 140 countries, which contributes 45.2 percent of its revenue, while domestic sales account for 54.8 percent in FY 2023-24.
The company operates ten manufacturing facilities, including nine in India and one in Sharjah, UAE, all equipped with advanced testing centers. This focus highlights the company’s commitment to quality and innovation, supported by strong R&D efforts.
Business Overview
APAR Industries Limited is a global leader, being the world’s largest manufacturer of aluminium conductors, the third-largest producer of transformer oil, and India’s top producer of renewable cables.
Written By – Nikhil Naik
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