Apar's results were in line with our expectation. Going forward we are confident that, from FY12, margins of conductors will be better on account of execution of higher margin business and increase in volume due to capacity
expansion

Key Highlights

- During the quarter, Apar report 59.6% (YoY) increase in sales. This was mainly attributed to strong volume growth of 74% (YoY) in conductors (31836 MT). For FY11 (cons) company reported sales of Rs. 3034 crs, an increase of 36% YoY.

-For the quarter, EBIDTA stood at 42.4 crs against the loss of Rs. ‐ 31.75 crs in Q4FY10. EBIDTA margin stood at 5.5%. For FY11, EBIDTA increased by 37% and margin remain stable at 6.2%.

- On Segmental performance, revenue in conductors segment increased by 72% (YoY,) but EBIT margin decline by180bps (YoY) on execution of lower margin business. For FY11, Conductor division grew by 34% (YoY) with EBIT margin of 3.5% against 6.1% (YoY). On Specialty oil division front, revenue increased by 42% (YoY) and EBIT margin of 9.7% against 6.9% (YoY). This 280bps increase in margin was mainly on account of better product mix. For FY11, Oil division posted growth of Rs. 36% with EBIT margin of 9.7%

-Current Order book of Apar stands at Rs. 1260 Crs (PGCIL is Rs. 400 crs). During the quarter, Apar reported more than Rs. 500 Crs worth of order inflow.

- Apar report Adj PAT of Rs. 22.5Crs against 20.5 Crs. Company reported quarterly EPS of Rs. 6.9 per share.

-Company has allotted 0.363 crs shares to Templeton on preferential basis at a premium of Rs.210per share, which has resulted in equity dilution. Total equity post allotment has increase to 3.957 crs