Apar Industries Shares Down 20% Following Poor Q3

Shares of Apar Industries fell by 20% after reporting its Q3 numbers today. The company reported a 19.7% year-on-year (YoY) decline in its net profit at ₹175 crore in the December quarter.

Earnings before interest, depreciation, tax and amortization (EBITDA) declined by 7.1% YoY to ₹401 crore.

Revenue from operations surged by 17.7% YoY to ₹4,716 crore in Q3 FY25, buoyed by a growth of 31.8% growth in the domestic business. However, the export segment’s contribution to the overall revenue was down to 33.5% in Q3, compared to 40.7% in the same quarter a year ago.

How did different segments perform?

Revenue of the conductor segment was up by 23.4% growth in Q3, while volumes surged by 19% YoY. The order book remained resilient at ₹7,601 crore.

Revenue of Cable solutions segment was up by 37% YoY. However, the specialty oils segment’s revenue declined by 0.6% YoY.

What did the management say?

Kushal N. Desai, Chairman & MD of APAR Industries, said, “We have delivered yet another quarter of healthy revenue growth. We continue to lead the way in our premium businesses with a continued focus on innovation and a customer-centric approach. We remain optimistic that the domestic growth trajectory will remain unwavering, led by continued infrastructure capex spend. Headwinds we faced for the export business are expected to reduce gradually.”

He added, “On the margins front, we have seen a drop this quarter due to unfavorable competitive prices from China and lower demand from exports. We are hopeful that export demand will improve. Freight costs have started to soften, which should help reduce landed costs. However, on the back of our strong foothold in the energy infrastructure space, we remain confident and resolute in delivering long-term value accretion to our stakeholders.”

Impact on shares

As of 3:25 pm, shares of Apar Industries Ltd are trading at ₹7,173, down 19.98%.