APAR INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

APAR INDUSTRIES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

APAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 39.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.2% in FY19 as against 7.5% in FY18.
• Depreciation charges increased by 19.3% and finance costs increased by 41.2% YoY, respectively.
• Other income grew by 37.2% YoY.
• Net profit for the year declined by 6.0% YoY.
• Net profit margins during the year declined from 2.5% in FY18 to 1.7% in FY19.

APAR INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	56,984	79,639	39.8%
Other income	Rs m	114	156	37.2%
Total Revenues	Rs m	57,097	79,795	39.8%
Gross profit	Rs m	4,253	4,904	15.3%
Depreciation	Rs m	559	667	19.3%
Interest	Rs m	1,581	2,231	41.2%
Profit before tax	Rs m	2,228	2,162	-2.9%
Tax	Rs m	780	802	2.7%
Profit after tax	Rs m	1,447	1,361	-6.0%
Gross profit margin	%	7.5	6.2
Effective tax rate	%	35.0	37.1
Net profit margin	%	2.5	1.7

Act Before 11:59pm: Last Day to SAVE 80% on Our Midcap Stocks Research

APAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 36 billion as compared to Rs 30 billion in FY18, thereby witnessing an increase of 20.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY18, a fall of 19.5%.
• Current assets rose 15% and stood at Rs 41 billion, while fixed assets rose 20% and stood at Rs 8 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 50 billion as against Rs 43 billion during FY18, thereby witnessing a growth of 16%.

APAR INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	11,083	12,024	8.5
Current Liabilities	Rs m	29,637	35,747	20.6
Long-term Debt	Rs m	1,619	1,303	-19.5
Total Liabilities	Rs m	42,759	49,570	15.9
Current assets	Rs m	35,729	41,118	15.1
Fixed Assets	Rs m	7,030	8,452	20.2
Total Assets	Rs m	42,759	49,570	15.9

APAR INDUSTRIES Cash Flow Statement Analysis

• APAR INDUSTRIES 's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion, an improvement of 180.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion, an improvement of 8,388.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -491 million from the Rs 2 billion net cash flows seen during FY18.

APAR INDUSTRIES Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	2,250	6,320	180.9%
Cash Flow from Investing Activities	Rs m	-46	-3,879	-
Cash Flow from Financing Activities	Rs m	-689	-2,933	-
Net Cash Flow	Rs m	1,514	-491	-

Current Valuations for APAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.6, an decline from the EPS of Rs 37.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 674.1, stands at 19.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	1,489.0	2,081.0
TTM Earnings per share	Rs	37.8	35.6
Diluted earnings per share	Rs	37.8	35.6
Price to Cash Flow	x	13.8	12.8
TTM P/E ratio	x	19.2	19.2
Price / Book Value ratio	x	2.8	2.2
Market Cap	Rs m	30,482	25,944
Dividends per share (Unadj.)	Rs	9.5	9.5

Ratio Analysis for APAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.2x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.0x during FY19, from 2.4x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 11.3% during FY19, from 13.1% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 33.0% during FY19, from 30.0% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 7.2% during FY19, from 7.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	11	10
Interest coverage	x	2.4	2.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.1	7.2
Return on equity	%	13.1	11.3
Return on capital employed	%	30.0	33.0

To see how APAR INDUSTRIES has performed over the last 5 years, please visit here.

APAR INDUSTRIES Share Price Performance

Over the last one year, APAR INDUSTRIES share price has moved down from Rs 723.6 to Rs 674.1, registering a loss of Rs 49.6 or around 6.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for APAR INDUSTRIES and quarterly results for APAR INDUSTRIES )

Read: Latest Annual Report Analysis of APAR INDUSTRIES