Apar Industries zooms 42% in two days, hits record high on robust earnings

Shares of Apar Industries hit a new high of Rs 1,999, as they rallied 18 per cent on the BSE in Wednesday’s intra-day trade, extending its previous day surge after the company reported 210 per cent year-on-year (YoY) jump in consolidated profit after tax to Rs 170 crore in December quarter (Q3FY23), led by strong operational performance.

In past two trading days, the stock has zoomed 42 per cent. It surpassed its previous high of Rs 1,864, touched on January 5, 2023.

The company’s consolidated sales grew 76.9 per cent YoY to Rs 3,942 crore in Q3FY23. Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 199 per cent YoY to Rs 349 crore, with ebitda margins expanding by 360bps YoY to 8.8 per cent, owing to better gross margins.

The management said the company witnessed volume growth across all the three divisions and the net profit tripled on a YoY basis. “We are optimistic about the growth prospects of our company as we believe we are appropriately placed to tap the benefits of infra-led spends, push towards renewable energy as well as China+l,” the management said.

The company’s conductors segment reported a growth of 103.3 per cent YoY to Rs 1,910 crore, owing to strong volume growth (up 99 per cent YoY), higher share of premium product and strong exports growth (up 288 per cent YoY). Cables reported an 89.5 per cent YoY growth to Rs 920 crore owing to strong growth in exports and elastromeric products. Speciality oil segment revenue grew 37.5 per cent YoY to Rs 1,180 crore, driven by volume growth and higher base oil price.

Meanwhile, in the past one year, stock of the world's largest conductor manufacturer, third largest transformer oil manufacturer, and India's largest renewable cables manufacturer has zoomed 190 per cent. In comparison, the S&P BSE Sensex has gained 1.6 per cent.