APL APOLLO TUBES 2022-23 Annual Report Analysis

Mon, 21 Aug

APL APOLLO TUBES 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.

APL APOLLO TUBES Income Statement Analysis

• Operating income during the year rose 23.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.3% in FY23 as against 7.2% in FY22.
• Depreciation charges increased by 26.9% and finance costs increased by 50.9% YoY, respectively.
• Other income grew by 16.5% YoY.
• Net profit for the year grew by 3.7% YoY.
• Net profit margins during the year declined from 4.7% in FY22 to 4.0% in FY23.

APL APOLLO TUBES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	130,633	161,660	23.8%
Other income	Rs m	405	472	16.5%
Total Revenues	Rs m	131,038	162,131	23.7%
Gross profit	Rs m	9,453	10,216	8.1%
Depreciation	Rs m	1,090	1,383	26.9%
Interest	Rs m	445	671	50.9%
Profit before tax	Rs m	8,323	8,633	3.7%
Tax	Rs m	2,133	2,215	3.8%
Profit after tax	Rs m	6,190	6,419	3.7%
Gross profit margin	%	7.2	6.3
Effective tax rate	%	25.6	25.7
Net profit margin	%	4.7	4.0

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APL APOLLO TUBES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 27 billion as compared to Rs 16 billion in FY22, thereby witnessing an increase of 66.8%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY22, a growth of 17.6%.
• Current assets rose 52% and stood at Rs 31 billion, while fixed assets rose 20% and stood at Rs 35 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 65 billion as against Rs 49 billion during FY22, thereby witnessing a growth of 33%.

APL APOLLO TUBES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	24,571	30,038	22.3
Current Liabilities	Rs m	16,144	26,934	66.8
Long-term Debt	Rs m	3,472	4,081	17.6
Total Liabilities	Rs m	48,970	65,305	33.4
Current assets	Rs m	20,121	30,516	51.7
Fixed Assets	Rs m	28,849	34,596	19.9
Total Assets	Rs m	48,970	65,305	33.4

APL APOLLO TUBES Cash Flow Statement Analysis

• APL APOLLO TUBES's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 5.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 65.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 456% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -410 million from the Rs 1 billion net cash flows seen during FY22.

APL APOLLO TUBES 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	6,517	6,901	5.9%
Cash Flow from Investing Activities	Rs m	-5,301	-8,757	-
Cash Flow from Financing Activities	Rs m	260	1,446	455.6%
Net Cash Flow	Rs m	1,476	-410	-

Current Valuations for APL APOLLO TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.1, an decline from the EPS of Rs 24.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,534.1, stands at 59.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.2 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 38.0 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	521.9	582.9
TTM Earnings per share	Rs	24.7	23.1
Diluted earnings per share	Rs	22.3	23.1
Price to Cash Flow	x	34.8	38.0
TTM P/E ratio	x	41.0	59.5
Price / Book Value ratio	x	13.5	9.9
Market Cap	Rs m	332,710	296,494
Dividends per share (Unadj.)	Rs	3.5	5.0

Ratio Analysis for APL APOLLO TUBES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 deteriorated and stood at 13.9x during FY23, from 19.7x 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 declined and down at 21.4% during FY23, from 25.2% 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 declined and down at 27.3% during FY23, from 31.3% 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 declined and down at 10.9% during FY23, from 13.5% 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	1.1
Debtors’ Days	Days	1	0
Interest coverage	x	19.7	13.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	13.5	10.9
Return on equity	%	25.2	21.4
Return on capital employed	%	31.3	27.3

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 up from Rs 1,062.0 to Rs 1,534.1, registering a gain of Rs 472.2 or around 44.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,243.0 (up 1.1%). Over the last one year it has moved up from 18,882.4 to 21,243.0, a gain of 2,361 points (up 12.5%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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