Apar Industries Q2 FY21 first cut: Strong show - YES Securities

- Apar Industries reported topline of Rs14.8 bn (down 19% yoy), slightly below our estimates.

- While Conductor segment reported a revenue de-growth of 30% yoy, a similar decline was also seen in Cables segment. Specialty Oil segment however grew around 5% yoy during the quarter.

- Profitability however saw a sharp improvement with blended Operating margins improving 206 bps yoy to 8% during the quarter. This was higher than our estimates.

- EBIT Margins improved across Conductor and Specialty oil segment while cable segment margins continue to struggle.

- The sharp decline in finance costs saw PAT jump 58% yoy to Rs.535 mn.

We currently have a BUY rating on the stock and would review our estimates post the Earnings Call.

Source : Equity Bulls

Keywords