APOLLO MICRO SYSTEMS 2022-23 Annual Report Analysis

Thu, 5 Oct

APOLLO MICRO SYSTEMS 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 MICRO SYSTEMS Income Statement Analysis

• Operating income during the year rose 22.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY23 as against 18.7% in FY22.
• Depreciation charges increased by 15.5% and finance costs increased by 31.2% YoY, respectively.
• Other income grew by 8.6% YoY.
• Net profit for the year grew by 28.2% YoY.
• Net profit margins during the year grew from 6.0% in FY22 to 6.3% in FY23.

APOLLO MICRO SYSTEMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,432	2,975	22.3%
Other income	Rs m	8	8	8.6%
Total Revenues	Rs m	2,440	2,984	22.3%
Gross profit	Rs m	455	609	33.7%
Depreciation	Rs m	90	104	15.5%
Interest	Rs m	170	224	31.2%
Profit before tax	Rs m	203	290	43.0%
Tax	Rs m	56	102	81.3%
Profit after tax	Rs m	146	187	28.2%
Gross profit margin	%	18.7	20.5
Effective tax rate	%	27.8	35.3
Net profit margin	%	6.0	6.3

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APOLLO MICRO SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 8.2%.
• Long-term debt stood at Rs 19 million as compared to Rs 7 million during FY22, a growth of 178.1%.
• Current assets rose 15% and stood at Rs 6 billion, while fixed assets rose 20% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 16%.

APOLLO MICRO SYSTEMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,193	3,375	5.7
Current Liabilities	Rs m	2,578	2,790	8.2
Long-term Debt	Rs m	7	19	178.1
Total Liabilities	Rs m	5,992	6,926	15.6
Current assets	Rs m	4,830	5,533	14.6
Fixed Assets	Rs m	1,162	1,393	19.8
Total Assets	Rs m	5,992	6,926	15.6

APOLLO MICRO SYSTEMS Cash Flow Statement Analysis

• APOLLO MICRO SYSTEMS's cash flow from operating activities (CFO) during FY23 stood at Rs -163 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -348 million, an improvement of 43.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 510 million, an improvement of 373% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs 2 million net cash flows seen during FY22.

APOLLO MICRO SYSTEMS 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	432	-163	-
Cash Flow from Investing Activities	Rs m	-243	-348	-
Cash Flow from Financing Activities	Rs m	-187	510	-
Net Cash Flow	Rs m	2	-1	-

Current Valuations for APOLLO MICRO SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 69.4, stands at 94.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 1.7 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	117.1	143.3
TTM Earnings per share	Rs	7.0	9.0
Diluted earnings per share	Rs	0.6	0.7
Price to Cash Flow	x	12.8	1.7
TTM P/E ratio	x	20.7	94.6
Price / Book Value ratio	x	0.9	0.2
Market Cap	Rs m	2,874	508
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for APOLLO MICRO SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.9x 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 2.3x during FY23, from 2.2x 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 5.6% during FY23, from 4.6% 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 15.1% during FY23, from 11.7% 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 5.9% during FY23, from 5.3% 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	1.9	2.0
Debtors’ Days	Days	2,047	1,798
Interest coverage	x	2.2	2.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	5.9
Return on equity	%	4.6	5.6
Return on capital employed	%	11.7	15.1

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

APOLLO MICRO SYSTEMS Share Price Performance

Over the last one year, APOLLO MICRO SYSTEMS share price has moved up from Rs 18.3 to Rs 69.4, registering a gain of Rs 51.0 or around 278.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 48,202.3 (up 1.3%). Over the last one year it has moved up from 31,494.4 to 48,202.3, a gain of 16,708 points (up 53.1%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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