This article does not talk about any split / bonus plan. Nor have I read about the same anywhere else.
Can you reference where you’ve come across this?
Holding from much lower levels.
Haven’t heard either but have been wondering if the management is looking into that and maybe I am not aware, so asked if anybody did.
Don’t you think it should be on their cards? considering the price apar is currently trading at.
PS: It has nothing to do with the article, VP doesn’t allow to post more than 3 times in a row and suggests editing.
1 Like
Apar management is solid. The family runs the business well. They will make necessary decisions in time. One cannot rule anything out.
APAR will grow exponentially - everything is in their favour right now.
4 Likes
The business looks like that its time has come.
They are present across the renewable value chain.
I have one question which I couldn’t find answer to…are they exposed to undersea power cables which will be required for offshore wind and in a decade or so for regional grid connections?
7 Likes
Thank you all for this insightful thread. Studying this company for sometime now. Need to understand the logic of raising funds to the tune of Rs 1000 crores by diluting equity when :
- Co. has been constantly generating good cash flow from operations year on year
- Co. also has track record of great ROCE which in my opinion means that the company should have used debt if required and pay it off to generate greater returns for their shareholder due to the financial leverage effect.
In my opinion if the sole reason was to meet working capital then it could have been met through debt and it would have been better for the shareholders and if it was to get good set of investors such as mutual funds to boost the confidence of other shareholders then they could have done the same by selling some portion of promoter shareholding to these funds just like Sharda Motors did recently.
Please enlighten.
2 Likes
I can see day payables=140 whereas receivables at 89. However, FY24 still shows a negative operating cash flow of -283 cr at operating profit of 1556 cr. Any specific reason for this or am I misreading it?
2 Likes
Sharing some key insights I gained related to Apar from Nomura T&D report:
Copper vs aluminium:
Shortage of cable-laying vessels:
Insulation materials:
Reconductoring a significant opportunity:
9 Likes
Apar plans capacity expansion of CTC business
- Expansion Overview: Apar Industries is expanding its Continuous Transposed Conductor (CTC) production capacity to address increasing demand driven by government priorities in the power and generation equipment sector.
- Capacity Growth:
- Current capacity: 7,350 tonnes/year (utilization: 98%).
- Phase 1 (by FY25): Additional 5,160 tonnes/year.
- Phase 2 (by Q3 FY26): Further 7,980 tonnes/year.
- Post-expansion capacity: 20,490 tonnes/year (3x current levels).
- Investment Details:
- Total investment: ₹73 crore.
- Timeline: Capacity expansion to be completed by Q3 FY26 (October-December 2025).
- Market Potential:
- Backed by the National Electricity Plan (2024), substantial transmission line (191,474 ckm) and transformation capacity (12,74,185 MVA) additions are projected between 2022-2032.
- Positive outlook on the transmission segment domestically and globally.
- Strategic Benefits:
- Strengthened market penetration in the Continuous Transposed Conductor (CTC) segment.
- Synergies with leadership position in the transformer oil segment to drive global CTC business expansion.
- Management Insight: CEO Manish Agrawal emphasized the complementary nature of transformer oil and CTC customer bases and the opportunity for enhanced market presence in a growing sector.
Sources:
9 Likes
Advanced conductors on existing transmission towers - Apar EBITDA/MT has increased from 10k in FY20 to 42k in FY24
2 Likes
7 Likes
APAR Industries’ Strategic Position in India’s Power Transmission Super-Cycle
- Strategic Fit in India’s National Energy Policy (NEP) Goals:
- India’s NEP blueprint outlines a significant investment of ~INR9.2tn over 2022–32 to expand the transmission network, aiming to meet a peak demand of 458GW by 2032.
- APAR Industries is well-positioned to benefit from this capex super-cycle, given its extensive portfolio in conductors, specialty cables, and transformer oils.
- Market Leadership and Product Diversity:
- APAR is the largest player in India’s conductor market and the #1 exporter of cables and wires (C&W).
- It is the third-largest manufacturer of transformer oils globally, with a leading position in automotive lubricants.
- The company holds a significant market share in high-value products like HTLS conductors, with ~50% share in the ACCC segment used for re-conductoring.
- High-Temperature Low-Sag (HTLS) conductors, such as Aluminum Conductor Composite Core (ACCC), are advanced power transmission lines designed to carry more electricity with reduced sag and higher efficiency.
- Growth in Emerging Segments:
- APAR has expanded its footprint into high-growth sectors such as data centers, renewable energy (RE) generation, railways, defense, and the EV ecosystem.
- The company’s focus on new-age segments complements its traditional power T&D offerings, driving sustained growth.
- Re-conductoring as a Margin Driver:
- APAR is set to capitalize on re-conductoring opportunities, which could enhance its EBITDA/mt significantly, driven by the adoption of high-efficiency conductors to reduce transmission losses.
- Robust Export Opportunities:
- The global push for grid modernization and RE transition presents strong export opportunities, with the US and Europe planning massive T&D infra upgrades.
- APAR’s exports, particularly to the US, contribute to its revenue growth, leveraging the USD1.2tn US infra capex and EUR584bn European grid expansion plans.
- Focus on High-Efficiency Conductors (HEC):
- APAR’s move towards HEC and premium products is expected to boost profitability, benefiting from lower competition and higher margins in this category.
- The shift to higher-value AL59 and HTLS conductors is aligned with the government’s focus on advanced HV transmission systems.
- C&W Segment Growth:
- The specialty cables segment is projected to compound at a 25–30% CAGR over FY24–27E, driven by demand for optical fibers, electronic beams, and power cables.
- APAR’s market share in wind and solar cables positions it as a leader in the renewable energy cable market.
Source: Nuvama Research Report
6 Likes
Apar Industries | Management Interview
Management Says "We delivered strong revenue growth this quarter, driven by innovation and customer focus.
Domestic growth remains steady with infrastructure capex support, while export headwinds are easing.
Margins dipped due to Chinese competition and lower export demand, but softening freight costs offer relief.
With a strong energy infrastructure presence, we remain committed to long-term value creation for stakeholders."
9 Likes
What we do in apar?
what’s is future growth ?
Apart from the poor results due to decrement in margins, the whole narrative of much less power being required by the datacentres for Deepseek compared to conventional LLM models has impacted the whole power T & D theme and hence the reaction in Stock prices… More than anything I would be tracking the margins which the management said that would improve in Q4 and FY26…Regarding this deepsake thing there is much more clarity that has to emerge and also there are chances of this not being authorized in many countries due to the China connection.
10 Likes
It’s not just Deepseek alone. See, the thing is, this has sent a message to the world that building LLMs isn’t as hard & expensive as everyone was thinking it was. Plus they made everything open source so that everyone can follow. That’s the interesting part.
6 Likes
First full break in trendline, with the recent broader market correction. Still a beautiful business, with lots going for it.
Is the journey over, or can it reclaim its’ 5 digit status?
3 Likes
No any major issue except china competition , if they tackle Chinese competition in coming quarter you will see 5 digit shortly.
China has always been around.
This is a structural breakdown on charts. Hasn’t happened before.
Why do they have huge receivables and payables(both over 4,000 crore) as per last year balance sheet(FY24)? Is the government a big client?