APAR Industries Ltd delivered a robust performance in the December quarter, with consolidated net profit rising 19.4% year-on-year to ₹209 crore, compared with ₹175 crore in the corresponding period last year. According to reports from CNBC TV18, the company's revenue increased 16.7% to ₹5,479.7 crore from ₹4,696.5 crore, supported by healthy performance in the domestic market. The company also recognised a ₹25 crore provision linked to past service costs arising from the enactment of new labour codes, classified under exceptional items.
Domestic revenues emerged as the key growth driver, growing sharply by 30% year-on-year, underscoring resilient demand across key segments. This strong domestic performance helped offset challenges in other areas of the business, demonstrating the company's ability to capitalize on domestic market opportunities despite external headwinds. The improved margins indicate enhanced operational efficiency and effective management of business expenses during the quarter.
EBITDA climbed 32% to ₹444.3 crore, while operating margins expanded to 8.1% from 7.2% a year earlier, reflecting better cost control and operating leverage. The improved margins indicate enhanced operational efficiency and effective management of business expenses during the quarter.
On the downside, exports declined 11.2% year-on-year, contributing 25.6% to overall revenues versus 33.5% in the corresponding quarter last year. The US business saw a sharp 51% contraction during the quarter, highlighting the challenges faced in international markets amid global economic uncertainties. The provision recognition impacted the overall financial performance, though the company maintained strong operational metrics across other key parameters.
Shares of APAR Industries were trading nearly 4% higher at ₹7,707 on the NSE in afternoon trade, reflecting a positive market reaction to the earnings performance. The strong domestic demand and improved operational metrics appear to have outweighed concerns about export challenges and international business performance, supporting investor confidence in the company's near-term prospects. The company's ability to maintain profitability despite export headwinds demonstrates its resilience in the current market environment.
