APOLLO TYRES 2020-21 Annual Report Analysis

Wed, 31 Mar

APOLLO TYRES 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.

APOLLO TYRES Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY21 as against 12.0% in FY20.
• Depreciation charges increased by 15.5% and finance costs increased by 54.3% YoY, respectively.
• Other income grew by 446.5% YoY.
• Net profit for the year declined by 26.5% YoY.
• Net profit margins during the year declined from 2.9% in FY20 to 2.0% in FY21.

APOLLO TYRES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	163,502	173,970	6.4%
Other income	Rs m	237	1,294	446.5%
Total Revenues	Rs m	163,739	175,264	7.0%
Gross profit	Rs m	19,581	22,098	12.9%
Depreciation	Rs m	11,381	13,150	15.5%
Interest	Rs m	3,002	4,631	54.3%
Profit before tax	Rs m	5,434	5,612	3.3%
Tax	Rs m	670	2,110	214.7%
Profit after tax	Rs m	4,764	3,502	-26.5%
Gross profit margin	%	12.0	12.7
Effective tax rate	%	12.3	37.6
Net profit margin	%	2.9	2.0

APOLLO TYRES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 91 billion as compared to Rs 79 billion in FY20, thereby witnessing an increase of 15.1%.
• Long-term debt down at Rs 48 billion as compared to Rs 51 billion during FY20, a fall of 6.6%.
• Current assets rose 31% and stood at Rs 101 billion, while fixed assets rose 2% and stood at Rs 182 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 283 billion as against Rs 254 billion during FY20, thereby witnessing a growth of 11%.

APOLLO TYRES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	99,300	114,431	15.2
Current Liabilities	Rs m	79,454	91,461	15.1
Long-term Debt	Rs m	51,479	48,082	-6.6
Total Liabilities	Rs m	254,375	282,600	11.1
Current assets	Rs m	77,135	101,040	31.0
Fixed Assets	Rs m	177,240	181,560	2.4
Total Assets	Rs m	254,375	282,600	11.1

APOLLO TYRES Cash Flow Statement Analysis

• APOLLO TYRES's cash flow from operating activities (CFO) during FY21 stood at Rs 24 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -23 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 2 billion net cash flows seen during FY20.

APOLLO TYRES 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	25,174	24,469	-2.8%
Cash Flow from Investing Activities	Rs m	-27,959	-23,443	-
Cash Flow from Financing Activities	Rs m	4,725	1,522	-67.8%
Net Cash Flow	Rs m	1,714	2,575	50.3%

Current Valuations for APOLLO TYRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an decline from the EPS of Rs 8.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 223.8, stands at 40.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	285.8	273.9
TTM Earnings per share	Rs	8.3	5.5
Diluted earnings per share	Rs	7.5	5.5
Price to Cash Flow	x	3.1	6.4
TTM P/E ratio	x	10.6	40.6
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	86,108	107,332
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for APOLLO TYRES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.0x 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 deteriorated and stood at 2.2x during FY21, from 2.8x 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 3.1% during FY21, from 4.8% 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 improved and stood at 6.3% during FY21, from 5.6% 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 2.9% during FY21, from 3.1% 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	1.0	1.1
Debtors’ Days	Days	21	29
Interest coverage	x	2.8	2.2
Debt to equity ratio	x	0.5	0.4
Return on assets	%	3.1	2.9
Return on equity	%	4.8	3.1
Return on capital employed	%	5.6	6.3

To see how APOLLO TYRES has performed over the last 5 years, please visit here.

APOLLO TYRES Share Price Performance

Over the last one year, APOLLO TYRES share price has moved up from Rs 79.4 to Rs 223.8, registering a gain of Rs 144.4 or around 182.0%.

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

(To know more, check out historical annual results for APOLLO TYRES and quarterly results for APOLLO TYRES)

Read: Latest Annual Report Analysis of APOLLO TYRES