APL APOLLO TUBES 2021-22 Annual Report Analysis

Sun, 21 Aug

APL APOLLO TUBES 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.

APL APOLLO TUBES Income Statement Analysis

• Operating income during the year rose 53.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY22 as against 8.0% in FY21.
• Depreciation charges increased by 6.0% and finance costs decreased by 32.7% YoY, respectively.
• Other income grew by 12.7% YoY.
• Net profit for the year grew by 51.8% YoY.
• Net profit margins during the year declined from 4.8% in FY21 to 4.7% in FY22.

APL APOLLO TUBES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	84,998	130,633	53.7%
Other income	Rs m	359	405	12.7%
Total Revenues	Rs m	85,357	131,038	53.5%
Gross profit	Rs m	6,787	9,453	39.3%
Depreciation	Rs m	1,028	1,090	6.0%
Interest	Rs m	661	445	-32.7%
Profit before tax	Rs m	5,458	8,323	52.5%
Tax	Rs m	1,381	2,133	54.5%
Profit after tax	Rs m	4,077	6,190	51.8%
Gross profit margin	%	8.0	7.2
Effective tax rate	%	25.3	25.6
Net profit margin	%	4.8	4.7

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APL APOLLO TUBES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 16 billion as compared to Rs 14 billion in FY21, thereby witnessing an increase of 19.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY21, a growth of 89.2%.
• Current assets rose 28% and stood at Rs 20 billion, while fixed assets rose 36% and stood at Rs 29 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 49 billion as against Rs 37 billion during FY21, thereby witnessing a growth of 33%.

APL APOLLO TUBES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,909	22,624	33.8
Current Liabilities	Rs m	13,538	16,144	19.2
Long-term Debt	Rs m	1,835	3,472	89.2
Total Liabilities	Rs m	36,929	48,970	32.6
Current assets	Rs m	15,745	20,121	27.8
Fixed Assets	Rs m	21,184	28,849	36.2
Total Assets	Rs m	36,929	48,970	32.6

APL APOLLO TUBES Cash Flow Statement Analysis

• APL APOLLO TUBES's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 260 million, an improvement of 107% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs -283 million net cash flows seen during FY21.

APL APOLLO TUBES 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	9,771	6,517	-33.3%
Cash Flow from Investing Activities	Rs m	-6,468	-5,301	-
Cash Flow from Financing Activities	Rs m	-3,586	260	-
Net Cash Flow	Rs m	-283	1,476	-

Current Valuations for APL APOLLO TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.7, an decline from the EPS of Rs 32.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,062.0, stands at 46.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 45.7 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	680.5	521.9
TTM Earnings per share	Rs	32.6	24.7
Diluted earnings per share	Rs	16.3	24.7
Price to Cash Flow	x	68.7	45.7
TTM P/E ratio	x	86.0	46.5
Price / Book Value ratio	x	17.0	14.7
Market Cap	Rs m	287,255	332,710
Dividends per share (Unadj.)	Rs	0.0	3.5

Ratio Analysis for APL APOLLO TUBES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY22, from 1.2x 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 19.7x during FY22, from 9.3x 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 27.4% during FY22, from 24.1% 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 33.6% during FY22, from 32.6% 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 13.5% during FY22, from 12.8% 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	1.2	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	9.3	19.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	12.8	13.5
Return on equity	%	24.1	27.4
Return on capital employed	%	32.6	33.6

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

APL APOLLO TUBES Share Price Performance

Over the last one year, APL APOLLO TUBES share price has moved down from Rs 1,604.3 to Rs 1,062.0, registering a loss of Rs 542.4 or around 33.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 18,882.4 (down 1.8%). Over the last one year it has moved down from 19,339.4 to 18,882.4, a loss of 457 points (down 2.4%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of APL APOLLO TUBES