Apar Industries gains 42% in two days and reaches a new high on strong earnings.
Apar Industries’ shares rose 18% on the BSE in intraday trade on Wednesday, extending its previous day spike after the business reported a 210 percent year-on-year (YoY) growth in consolidated profit after tax to Rs 170 crore in the December quarter (Q3FY23), backed by strong operational performance.
The stock has increased by 42% in the last two trading days. It outperformed its previous high of Rs 1,864 set on January 5, 2023.
In Q3FY23, the company’s consolidated revenues increased by 76.9 percent year on year to Rs 3,942 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 199% year on year to Rs 349 crore, with ebitda margins increasing 360bps year on year to 8.8 percent due to higher gross margins.
According to the company’s management, volume increased across all three divisions, and net profit tripled year on year. “We are confident about our company’s development prospects because we feel we are well-positioned to capitalise on the benefits of infrastructure-led spending, the push toward renewable energy, and China+l,” the management stated.
The conductors segment of the company increased by 103.3 percent year on year to Rs 1,910 crore, owing to excellent volume growth (up 99 percent year on year), a bigger share of premium goods, and strong export growth (up 288 per cent YoY). Cables increased by 89.5 percent year on year to Rs 920 crore, because to robust growth in exports and elastromeric products. Revenue from the specialty oil business increased 37.5 percent year on year to Rs 1,180 crore, owing to volume growth and higher base oil prices.
Meanwhile, the stock of the world’s largest conductor producer, third largest transformer oil maker, and India’s largest renewable cables manufacturer has increased by 190 percent in the last year. In comparison, the S&P BSE Sensex has risen 1.6%.