Apar Industries shares fell as much as 20 percent on Tuesday, January 28, as net profit for the quarter ended December 31, 2024 crashed 20 percent year-on-year.
Apar Industries shares are currently trading at Rs 7,171.05 which is down by 20 percent, at 1:45 pm on January 28.
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Apar Industries announced its Q3 results for FY2025 on Tuesday, January 28, with majority of the key metrics posing for a degrowth. It reported a 17.7 percent increase in revenue, reaching Rs 4,716 crore for the quarter. However, the company's net profit fell nearly 20 percent compared to the previous year, settling at Rs 175 crore.
The company's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) declined by 12 percent YoY to Rs 355.4 crore, while its EBITDA margin shrank by 250 basis points, dropping from 10 percent last year to 7.5 percent this quarter.
The management attributed the margin contraction to intense price competition from China and weaker export demand. Chairman & MD Kushal N Desai expressed optimism, stating, "We are hopeful that export demand will improve."
Apar’s domestic business saw robust growth, increasing by 31.8 percent YoY. Exports, however, contributed to 33.5 percent of the total revenue, down from 40.7 percent in the same quarter last year.
The fall in margins came as a result of unfavourable competitive prices from China and lower demand on the exports front.
"We are hopeful that export demand will improve," said the company's Chairman & MD Kushal N Desai said. He added,"Freight cost have started to soften which should help reduce landed costs. However, on the back of our strong foothold around energy infrastructure space we remain confident and resolute in delivering long -term value accretion to our stakeholders."
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