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APOLLO TYRES 2021-22 Annual Report Analysis
Wed, 22 Jun

APOLLO TYRES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

APOLLO TYRES Income Statement Analysis

  • Operating income during the year rose 20.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY22 as against 12.7% in FY21.
  • Depreciation charges increased by 6.4% and finance costs increased by 0.4% YoY, respectively.
  • Other income declined by 4.6% YoY.
  • Net profit for the year grew by 82.3% YoY.
  • Net profit margins during the year grew from 2.0% in FY21 to 3.0% in FY22.

APOLLO TYRES Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 173,970 209,476 20.4%
Other income Rs m 1,294 1,235 -4.6%
Total Revenues Rs m 175,264 210,711 20.2%
Gross profit Rs m 22,098 25,889 17.2%
Depreciation Rs m 13,150 13,997 6.4%
Interest Rs m 4,631 4,652 0.4%
Profit before tax Rs m 5,612 8,476 51.0%
Tax Rs m 2,110 2,091 -0.9%
Profit after tax Rs m 3,502 6,385 82.3%
Gross profit margin % 12.7 12.4
Effective tax rate % 37.6 24.7
Net profit margin % 2.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

APOLLO TYRES Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 98 billion as compared to Rs 91 billion in FY21, thereby witnessing an increase of 7.2%.
  • Long-term debt down at Rs 44 billion as compared to Rs 48 billion during FY21, a fall of 7.9%.
  • Current assets rose 1% and stood at Rs 102 billion, while fixed assets rose 3% and stood at Rs 188 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 289 billion as against Rs 282 billion during FY21, thereby witnessing a growth of 3%.

APOLLO TYRES Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 114,431 117,521 2.7
 
Current Liabilities Rs m 91,398 97,986 7.2
Long-term Debt Rs m 47,865 44,085 -7.9
Total Liabilities Rs m 282,319 289,451 2.5
 
Current assets Rs m 100,759 101,943 1.2
Fixed Assets Rs m 181,560 187,508 3.3
Total Assets Rs m 282,319 289,451 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



APOLLO TYRES Cash Flow Statement Analysis

  • APOLLO TYRES's cash flow from operating activities (CFO) during FY22 stood at Rs 22 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -12 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -12 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs 3 billion net cash flows seen during FY21.

APOLLO TYRES Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 24,469 22,388 -8.5%
Cash Flow from Investing Activities Rs m -23,443 -11,815 -
Cash Flow from Financing Activities Rs m 1,522 -11,754 -
Net Cash Flow Rs m 2,575 -1,187 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for APOLLO TYRES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 5.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 178.0, stands at 17.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 273.9 329.8
TTM Earnings per share Rs 5.5 10.1
Diluted earnings per share Rs 5.5 10.1
Price to Cash Flow x 8.5 6.5
TTM P/E ratio x 40.6 17.7
Price / Book Value ratio x 0.9 1.1
Market Cap Rs m 107,332 131,910
Dividends per share (Unadj.) Rs 3.5 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for APOLLO TYRES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.1x during FY21. 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 2.8x during FY22, from 2.2x during FY21. 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 5.4% during FY22, from 3.1% during FY22. 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 8.1% during FY22, from 6.3% during FY21. 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 3.8% during FY22, from 2.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.1 1.0
Debtors’ Days Days 29 28
Interest coverage x 2.2 2.8
Debt to equity ratio x 0.4 0.4
Return on assets % 2.9 3.8
Return on equity % 3.1 5.4
Return on capital employed % 6.3 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 224.9 to Rs 178.0, registering a loss of Rs 46.9 or around 20.8%.

Overall, the S&P BSE SENSEX is down 1.0% over the year.

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

Annual Report FAQs

What is the current share price of APOLLO TYRES?

APOLLO TYRES currently trades at Rs 235.1 per share. You can check out the latest share price performance of APOLLO TYRES here...

What was the revenue of APOLLO TYRES in FY22? How does it compare to earlier years?

The revenues of APOLLO TYRES stood at Rs 210,711 m in FY22, which was up 20.2% compared to Rs 175,264 m reported in FY21.

APOLLO TYRES' revenue has grown from Rs 147,022 m in FY18 to Rs 210,711 m in FY22.

Over the past 5 years, the revenue of APOLLO TYRES has grown at a CAGR of 9.4%.

What was the net profit of APOLLO TYRES in FY22? How does it compare to earlier years?

The net profit of APOLLO TYRES stood at Rs 6,385 m in FY22, which was up 82.3% compared to Rs 3,502 m reported in FY21.

This compares to a net profit of Rs 4,764 m in FY20 and a net profit of Rs 6,797 m in FY19.

Over the past 5 years, APOLLO TYRES net profit has grown at a CAGR of -3.1%.

What does the cash flow statement of APOLLO TYRES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of APOLLO TYRES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 22,388 m as compared to Rs 24,469 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -11,815 m as compared to Rs -23,443 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -11,754 m as compared to Rs 1,522 m in FY21.

Here's the cash flow statement of APOLLO TYRES for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations17,19710,71125,17424,46922,388
From Investments-38,628-9,959-27,959-23,443-11,815
From Financial Activity23,209-6224,7251,522-11,754
Net Cashflow4,614-1841,7142,575-1,187

What does the Key Ratio analysis of APOLLO TYRES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of APOLLO TYRES reveals:

  • Operating profit margins witnessed a fall and stood at 12.4% in FY22 as against 12.7% in FY21.
  • Net profit margins grew from 2.0% in FY21 to 3.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.4 as compared to 0.4 in FY21.

Here's the ratio/financial analysis of APOLLO TYRES for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)11.410.112.012.712.4
Net Profit Margin (%)5.03.92.92.03.0
Debt to Equity Ratio (x)0.40.40.50.40.4

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