APAR INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

APAR INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

APAR INDUSTRIES Income Statement Analysis

• Operating income during the year fell 14.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY21 as against 6.6% in FY20.
• Depreciation charges increased by 7.3% and finance costs decreased by 38.3% YoY, respectively.
• Other income grew by 39.7% YoY.
• Net profit for the year grew by 18.8% YoY.
• Net profit margins during the year grew from 1.8% in FY20 to 2.5% in FY21.

APAR INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	74,255	63,880	-14.0%
Other income	Rs m	240	335	39.7%
Total Revenues	Rs m	74,495	64,216	-13.8%
Gross profit	Rs m	4,867	4,249	-12.7%
Depreciation	Rs m	871	934	7.3%
Interest	Rs m	2,541	1,568	-38.3%
Profit before tax	Rs m	1,694	2,083	22.9%
Tax	Rs m	343	478	39.4%
Profit after tax	Rs m	1,352	1,605	18.8%
Gross profit margin	%	6.6	6.7
Effective tax rate	%	20.2	22.9
Net profit margin	%	1.8	2.5

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APAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 33 billion as compared to Rs 32 billion in FY20, thereby witnessing an increase of 2.8%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 1.9%.
• Current assets rose 10% and stood at Rs 40 billion, while fixed assets fell 2% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 50 billion as against Rs 47 billion during FY20, thereby witnessing a growth of 8%.

APAR INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,664	14,092	20.8
Current Liabilities	Rs m	32,313	33,206	2.8
Long-term Debt	Rs m	1,879	1,916	1.9
Total Liabilities	Rs m	46,538	50,087	7.6
Current assets	Rs m	36,672	40,426	10.2
Fixed Assets	Rs m	9,866	9,661	-2.1
Total Assets	Rs m	46,538	50,087	7.6

APAR INDUSTRIES Cash Flow Statement Analysis

• APAR INDUSTRIES 's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 243.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 454 million from the Rs -493 million net cash flows seen during FY20.

APAR INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	942	3,235	243.5%
Cash Flow from Investing Activities	Rs m	452	-1,105	-
Cash Flow from Financing Activities	Rs m	-1,888	-1,672	-
Net Cash Flow	Rs m	-493	454	-

Current Valuations for APAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.9, an improvement from the EPS of Rs 35.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 474.2, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,940.3	1,669.2
TTM Earnings per share	Rs	35.3	41.9
Diluted earnings per share	Rs	35.3	41.9
Price to Cash Flow	x	5.0	5.8
TTM P/E ratio	x	8.1	11.3
Price / Book Value ratio	x	1.5	1.1
Market Cap	Rs m	17,931	14,821
Dividends per share (Unadj.)	Rs	9.5	9.5

Ratio Analysis for APAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x during FY20. 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 improved and stood at 2.3x during FY21, from 1.7x during FY20. 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 11.4% during FY21, from 11.6% during FY21. 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 declined and down at 22.8% during FY21, from 31.3% during FY20. 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 declined and down at 6.3% during FY21, from 8.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	9	11
Interest coverage	x	1.7	2.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	8.4	6.3
Return on equity	%	11.6	11.4
Return on capital employed	%	31.3	22.8

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 up from Rs 287.8 to Rs 474.2, registering a gain of Rs 186.4 or around 64.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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