The share of exports in Apar Industries’ conductor business in FY21 was much higher than that in FY20, according to a recent investor presentation filed by the company.
In a pandemic-affected year that pushed down domestic revenues, exports appear to have done better.
Revenue from exports of conductors in FY21 was marginally higher by 0.4 per cent over FY20. Further, exports accounted for 52.1 per cent of the total revenues of the conductor business in FY21, significantly improving from 40.6 per cent in FY20.
Though the investor presentation did not specify export revenues, T&D India has estimated that Apar’s export revenues from the conductor business in FY21 to be around Rs.1,515 crore. As against this, domestic revenue from the same business was around Rs.1,461 crore in FY20.
Domestic revenue from the conductor business was down by 37 per cent in FY21. The company has attributed this fall in revenues to COVID-induced national lockdown in the initial months of FY21, delayed tendering and persistent low market demand.
The share of “higher-value” products in the overall conductor business was 32.6 per cent in FY21, lower than 39.4 per cent in FY20. This category includes specialized products such as high-efficiency conductors, copper conductors for railways, optical ground wire (OPGW), continuously transport conductors (CTC), etc. With this “high value” category, OPGW and CTC showed year-on-year growth in business.
Order book
The outstanding order book position of Apar’s conductor business stood at Rs.1,649 crore as of March 31, 2021, down 17.7 per cent from its corresponding position in 2020. It is interesting to note that exports accounted for 55 per cent of the March 2021-order book position. This implies that Apar’s exports business of conductors would continue to do well in FY22 as well.
Pre-COVID levels
Apar Industries has noted that the ongoing second wave of the pandemic would have a negative bearing on the performance in the first half (April to September) of FY22 as well. The company expects that the second half (October to March) would be closer to pre-COVID levels.
Diversified operations
It may be noted that this story discusses only the conductor business of Apar Industries. The Gujarat-based company operates other divisions like specialty oils (mainly transformer oil), lubricants, and cables. The conductor business accounted for 44 per cent of the total revenue of Apar Industries in FY21. Apar has a total manufacturing capacity of 1.80 lakh tonnes per year of aluminium and alloy conductors. Apar is also a stranding partner for US-based CTC Global Corporation’s patented ACCC conductor.
Featured photograph shows Apar’s conductor manufacturing facility at Silvassa located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu (DNH&DD).
