APOLLO TYRES 2022-23 Annual Report Analysis

Wed, 12 Jul

APOLLO TYRES 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.

APOLLO TYRES Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY23 as against 12.4% in FY22.
• Depreciation charges increased by 1.4% and finance costs increased by 18.4% YoY, respectively.
• Other income declined by 66.7% YoY.
• Net profit for the year grew by 73.0% YoY.
• Net profit margins during the year grew from 3.0% in FY22 to 4.5% in FY23.

APOLLO TYRES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	209,476	245,681	17.3%
Other income	Rs m	1,235	411	-66.7%
Total Revenues	Rs m	210,711	246,092	16.8%
Gross profit	Rs m	25,890	33,559	29.6%
Depreciation	Rs m	13,997	14,191	1.4%
Interest	Rs m	4,652	5,506	18.4%
Profit before tax	Rs m	8,477	14,272	68.4%
Tax	Rs m	2,091	3,226	54.3%
Profit after tax	Rs m	6,386	11,046	73.0%
Gross profit margin	%	12.4	13.7
Effective tax rate	%	24.7	22.6
Net profit margin	%	3.0	4.5

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APOLLO TYRES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 80 billion as compared to Rs 104 billion in FY22, thereby witnessing an decrease of -23.3%.
• Long-term debt down at Rs 38 billion as compared to Rs 44 billion during FY22, a fall of 14.0%.
• Current assets fell 17% and stood at Rs 89 billion, while fixed assets fell 2% and stood at Rs 184 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 273 billion as against Rs 294 billion during FY22, thereby witnessing a fall of 7%.

APOLLO TYRES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	117,521	128,778	9.6
Current Liabilities	Rs m	104,495	80,104	-23.3
Long-term Debt	Rs m	44,085	37,898	-14.0
Total Liabilities	Rs m	293,859	272,873	-7.1
Current assets	Rs m	106,556	88,587	-16.9
Fixed Assets	Rs m	187,303	184,286	-1.6
Total Assets	Rs m	293,859	272,873	-7.1

APOLLO TYRES Cash Flow Statement Analysis

• APOLLO TYRES's cash flow from operating activities (CFO) during FY23 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -352 million from the Rs -1 billion net cash flows seen during FY22.

APOLLO TYRES 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	21,536	21,344	-0.9%
Cash Flow from Investing Activities	Rs m	-11,722	-4,761	-
Cash Flow from Financing Activities	Rs m	-10,814	-16,918	-
Net Cash Flow	Rs m	-1,006	-352	-

Current Valuations for APOLLO TYRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.4, an improvement from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 433.0, stands at 24.9 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 1.1 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-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	329.8	386.8
TTM Earnings per share	Rs	10.1	17.4
Diluted earnings per share	Rs	10.1	17.4
Price to Cash Flow	x	6.0	6.4
TTM P/E ratio	x	19.0	24.9
Price / Book Value ratio	x	1.1	1.3
Market Cap	Rs m	131,910	161,998
Dividends per share (Unadj.)	Rs	3.3	4.5

Ratio Analysis for APOLLO TYRES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 3.6x during FY23, from 2.8x 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 8.6% during FY23, from 5.4% 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 11.9% during FY23, from 8.1% 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 6.1% during FY23, from 3.8% 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	1.0	1.1
Debtors’ Days	Days	36	37
Interest coverage	x	2.8	3.6
Debt to equity ratio	x	0.4	0.3
Return on assets	%	3.8	6.1
Return on equity	%	5.4	8.6
Return on capital employed	%	8.1	11.9

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 206.4 to Rs 433.0, registering a gain of Rs 226.6 or around 109.8%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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