Apar Industries Share Price Hit 20% Lower After Q3FY25 Results

Apar Industries share price plunged 20% on Tuesday, January 28, 2025, following weaker-than-expected December quarter results on most parameters. The stock was trading at ₹7,172.60 at 1:07 PM (IST), significantly lower than its 52-week high of ₹11,797.35 reached on January 8, 2025, and above its 52-week low of ₹5,464.05 recorded on January 29, 2024.

As per BSE data, the total traded volume for the stock stood at 0.40 lakh shares, with a turnover of ₹30.31 crore. At the current price, Apar Industries is trading at a price-to-earnings (P/E) ratio of 35.24x, based on trailing 12-month earnings per share (EPS) of ₹203.54, and a price-to-book (P/B) ratio of 7.38.

Quarterly Performance Highlights

Apar Industries reported a 19.6% year-on-year decline in net profit for the third quarter of FY25, with profits falling to ₹175 crore compared to ₹218 crore in the same period last year.

Revenue Growth Fails to Offset Profit Decline

Despite the drop in profitability, the company recorded a 17.7% increase in revenue, which rose to ₹4,716 crore in Q3 FY25 from ₹4,009 crore in the previous year. However, the revenue growth was not sufficient to counteract the pressure on margins and earnings.

EBITDA and Margins Take a Hit

Apar’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also declined, dropping by 12.1% year-on-year to ₹356 crore from ₹405 crore in the same quarter last year. The EBITDA margin contracted significantly to 7.6%, compared to 10.1% in the previous year, reflecting higher costs and pricing pressures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.