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APAR INDUSTRIES 2022-23 Annual Report Analysis

Tue, 18 Jul

APAR INDUSTRIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

APAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 54.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 132.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY23 as against 5.7% in FY22.
• Depreciation charges increased by 6.6% and finance costs increased by 101.5% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year grew by 148.4% YoY.
• Net profit margins during the year grew from 2.8% in FY22 to 4.4% in FY23.

APAR INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	93,166	143,522	54.0%
Other income	Rs m	776	632	-18.5%
Total Revenues	Rs m	93,942	144,154	53.4%
Gross profit	Rs m	5,329	12,398	132.6%
Depreciation	Rs m	978	1,043	6.6%
Interest	Rs m	1,707	3,441	101.5%
Profit before tax	Rs m	3,420	8,546	149.9%
Tax	Rs m	853	2,168	154.3%
Profit after tax	Rs m	2,567	6,377	148.4%
Gross profit margin	%	5.7	8.6
Effective tax rate	%	24.9	25.4
Net profit margin	%	2.8	4.4

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APAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 57 billion as compared to Rs 46 billion in FY22, thereby witnessing an increase of 25.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 22.5%.
• Current assets rose 26% and stood at Rs 70 billion, while fixed assets rose 15% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 82 billion as against Rs 66 billion during FY22, thereby witnessing a growth of 24%.

APAR INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,152	22,364	30.4
Current Liabilities	Rs m	45,682	57,272	25.4
Long-term Debt	Rs m	1,954	1,514	-22.5
Total Liabilities	Rs m	66,075	82,177	24.4
Current assets	Rs m	55,579	70,076	26.1
Fixed Assets	Rs m	10,497	12,101	15.3
Total Assets	Rs m	66,075	82,177	24.4

APAR INDUSTRIES Cash Flow Statement Analysis

• APAR INDUSTRIES 's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 186.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 196.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 461 million net cash flows seen during FY22.

APAR INDUSTRIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,438	6,983	186.5%
Cash Flow from Investing Activities	Rs m	-906	-2,689	-
Cash Flow from Financing Activities	Rs m	-1,064	-1,841	-
Net Cash Flow	Rs m	461	2,457	432.4%

Current Valuations for APAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 166.6, an improvement from the EPS of Rs 67.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,500.0, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	2,434.4	3,750.2
TTM Earnings per share	Rs	67.1	166.6
Diluted earnings per share	Rs	67.1	166.6
Price to Cash Flow	x	7.0	7.9
TTM P/E ratio	x	9.7	21.0
Price / Book Value ratio	x	1.5	2.6
Market Cap	Rs m	25,036	58,631
Dividends per share (Unadj.)	Rs	15.0	40.0

Ratio Analysis for APAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x during FY22. 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 3.5x during FY23, from 3.0x during FY22. 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 improved and stood at 28.5% during FY23, from 15.0% during FY23. 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 50.2% during FY23, from 26.8% during FY22. 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 11.9% during FY23, from 6.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	10	8
Interest coverage	x	3.0	3.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.5	11.9
Return on equity	%	15.0	28.5
Return on capital employed	%	26.8	50.2

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 1,023.6 to Rs 3,500.0, registering a gain of Rs 2,476.5 or around 241.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 41,608.8 (up 0.4%). Over the last one year it has moved up from 28,175.5 to 41,608.8, a gain of 13,433 points (up 47.7%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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