APAR Industries (APARINDS) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 revenue rose 18.4% year-over-year to INR 4,645 crore, driven by a 61.1% surge in domestic business, while export share declined to 29.8% due to lower U.S. sales and logistics disruptions.

• H1 FY25 consolidated revenue reached INR 8,655 crore, up 12.6% year-over-year, with domestic revenue up 53.4%.

• Q2 FY25 PAT increased 11.5% year-over-year to INR 194 crore; H1 PAT up 6.8% to INR 396 crore.

• APAR Industries is a global leader in conductors, transformer oils, and cables, with a 65+ year legacy and presence in 140+ countries.

• Export revenues contributed 45.2% to FY24 revenues, but export mix in H1 FY25 dropped to 33.2% due to a high US sales base last year.

Financial highlights

• Q2 FY25 EBITDA post forex at INR 402 crore, up 7.8% year-over-year; H1 EBITDA at INR 796 crore, up 7.2%.

• Q2 FY25 EBITDA margin at 8.7%; PAT margin at 4.2%; H1 EBITDA margin at 9.2%.

• Q2 EPS at INR 48.27; H1 EPS at INR 98.69.

• Cash flow from operations for H1 FY25 at INR 388.6 crore.

• US revenue in H1 FY25 declined 41.6% year-over-year but grew 17.5% sequentially in Q2.

Outlook and guidance

• Management expects continued benefit from global renewable focus despite export headwinds.

• Export-to-domestic ratio expected to improve in H2 as export volumes recover, supporting margin expansion.

• Domestic growth expected to remain strong, especially in conductor and cable segments, with focus on premium products and sunrise sectors.

• Full-year conductor volume growth may fall short of earlier 8-10% guidance due to H1 softness, but H2 expected to improve.