APCOTEX INDUSTRIES 2021-22 Annual Report Analysis

Tue, 31 May

APCOTEX INDUSTRIES 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.

APCOTEX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 77.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in FY22 as against 12.9% in FY21.
• Depreciation charges decreased by 2.9% and finance costs decreased by 14.6% YoY, respectively.
• Other income grew by 52.2% YoY.
• Net profit for the year grew by 123.8% YoY.
• Net profit margins during the year grew from 8.2% in FY21 to 10.3% in FY22.

APCOTEX INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,406	9,569	77.0%
Other income	Rs m	52	79	52.2%
Total Revenues	Rs m	5,458	9,648	76.8%
Gross profit	Rs m	699	1,398	100.1%
Depreciation	Rs m	145	141	-2.9%
Interest	Rs m	38	33	-14.6%
Profit before tax	Rs m	567	1,304	129.8%
Tax	Rs m	126	316	150.9%
Profit after tax	Rs m	442	988	123.8%
Gross profit margin	%	12.9	14.6
Effective tax rate	%	22.2	24.2
Net profit margin	%	8.2	10.3

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APCOTEX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 34.8%.
• Long-term debt stood at Rs 264 million as compared to Rs 60 million during FY21, a growth of 338.1%.
• Current assets rose 42% and stood at Rs 3 billion, while fixed assets rose 26% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 34%.

APCOTEX INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,054	3,962	29.7
Current Liabilities	Rs m	1,223	1,648	34.8
Long-term Debt	Rs m	60	264	338.1
Total Liabilities	Rs m	4,517	6,049	33.9
Current assets	Rs m	2,134	3,035	42.2
Fixed Assets	Rs m	2,383	3,014	26.5
Total Assets	Rs m	4,517	6,049	33.9

APCOTEX INDUSTRIES Cash Flow Statement Analysis

• APCOTEX INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 475 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -671 million, an improvement of 81.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 119 million, an improvement of 126% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -76 million from the Rs -79 million net cash flows seen during FY21.

APCOTEX INDUSTRIES 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	752	475	-36.8%
Cash Flow from Investing Activities	Rs m	-369	-671	-
Cash Flow from Financing Activities	Rs m	-463	119	-
Net Cash Flow	Rs m	-79	-76	-

Current Valuations for APCOTEX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.1, an improvement from the EPS of Rs 8.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 612.3, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	104.3	184.5
TTM Earnings per share	Rs	8.5	19.1
Diluted earnings per share	Rs	8.5	19.1
Price to Cash Flow	x	15.8	14.5
TTM P/E ratio	x	21.0	32.1
Price / Book Value ratio	x	2.3	4.1
Market Cap	Rs m	7,043	16,409
Dividends per share (Unadj.)	Rs	3.5	5.0

Ratio Analysis for APCOTEX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.7x 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 41.0x during FY22, from 15.9x 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 24.9% during FY22, from 14.5% 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 31.6% during FY22, from 19.4% 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 16.9% during FY22, from 10.6% 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	1.7	1.8
Debtors’ Days	Days	708	617
Interest coverage	x	15.9	41.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.6	16.9
Return on equity	%	14.5	24.9
Return on capital employed	%	19.4	31.6

To see how APCOTEX INDUSTRIES has performed over the last 5 years, please visit here.

APCOTEX INDUSTRIES Share Price Performance

Over the last one year, APCOTEX INDUSTRIES share price has moved up from Rs 336.9 to Rs 612.3, registering a gain of Rs 275.4 or around 81.7%.

Overall, the S&P BSE SENSEX is up 9.3% over the year.

(To know more, check out historical annual results for APCOTEX INDUSTRIES and quarterly results for APCOTEX INDUSTRIES)

Read: Latest Annual Report Analysis of APCOTEX INDUSTRIES