Apar Industries has reported a 6.7 per cent year-on-year growth in sales of conductors (in physical terms) during the first quarter (Q1: April to June) of FY25.
In an investor presentation, Apar Industries said that it sold 48,619 tonnes of conductor in Q1FY25, up 6.7 per from 45565 tonnes in Q1FY24.
Export mix in Q1FY25 at 29.5 per cent as compared to 52.4 per cent in the same quarter of FY24 as US/Europe demand was down due to regulatory delays and competition. Towards the end of June there were delivery challenges on account of export shipments affected by container availability tightness, Apar said.
In revenue terms, the share of “premium products” in Apar’s conductor business was lower at 37.1 per cent in Q1FY25. This was on account of execution delays, Apar said.
Premium products cover HEC (high-efficiency conductor), copper conductor, optical ground wire (OPGW), and ACCC (aluminium conductor composite core) conductors that are manufactured in partnership with US-based CTC Global.
In Q1FY25, the new order inflow in the conductor business was Rs.1794 crore and the outstanding order book as of June 30, 2024, stood at Rs.6725 crore with premium products constituting 41.1 per cent.
Cable division
Export business in Apar’s cable division had a lower share of 33.2 per cent in revenue terms, in Q1FY25 as against 51.5 per cent in Q1FY24. Export business was down due to high-base of US sales in Q1FY24.
Meanwhile, US-destined export business has shown a gradual recovery in Q1FY25 with further acceleration expected to come in the second half of FY25, Apar said.
As of June 30, 2024, the order book level in the cable business was Rs.1,571 crore.
Also read: Apar Industries: Order inflow of conductor business up 16 per cent
Featured photograph (source: Apar) is for representation only
