APOLLO PIPES 2020-21 Annual Report Analysis

Wed, 31 Mar

APOLLO PIPES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

APOLLO PIPES Income Statement Analysis

• Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 59.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.4% in FY21 as against 11.4% in FY20.
• Depreciation charges increased by 38.8% and finance costs decreased by 28.6% YoY, respectively.
• Other income declined by 17.0% YoY.
• Net profit for the year grew by 55.9% YoY.
• Net profit margins during the year grew from 7.0% in FY20 to 8.6% in FY21.

APOLLO PIPES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,080	5,181	27.0%
Other income	Rs m	101	84	-17.0%
Total Revenues	Rs m	4,181	5,265	25.9%
Gross profit	Rs m	466	744	59.6%
Depreciation	Rs m	127	176	38.8%
Interest	Rs m	64	45	-28.6%
Profit before tax	Rs m	377	607	60.9%
Tax	Rs m	92	162	76.2%
Profit after tax	Rs m	285	445	55.9%
Gross profit margin	%	11.4	14.4
Effective tax rate	%	24.4	26.7
Net profit margin	%	7.0	8.6

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APOLLO PIPES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 1 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -11.8%.
• Long-term debt down at Rs 182 million as compared to Rs 295 million during FY20, a fall of 38.4%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets rose 27% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 3%.

APOLLO PIPES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,865	3,511	22.6
Current Liabilities	Rs m	1,516	1,338	-11.8
Long-term Debt	Rs m	295	182	-38.4
Total Liabilities	Rs m	4,913	5,072	3.2
Current assets	Rs m	3,016	2,661	-11.8
Fixed Assets	Rs m	1,897	2,411	27.1
Total Assets	Rs m	4,913	5,072	3.2

APOLLO PIPES Cash Flow Statement Analysis

• APOLLO PIPES's cash flow from operating activities (CFO) during FY21 stood at Rs 314 million, an improvement of 152.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -556 million, an improvement of 6.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -316 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -557 million from the Rs -195 million net cash flows seen during FY20.

APOLLO PIPES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	124	314	152.8%
Cash Flow from Investing Activities	Rs m	-521	-556	-
Cash Flow from Financing Activities	Rs m	202	-316	-
Net Cash Flow	Rs m	-195	-557	-

Current Valuations for APOLLO PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.9, an improvement from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 987.3, stands at 87.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	311.2	395.2
TTM Earnings per share	Rs	21.8	33.9
Diluted earnings per share	Rs	7.3	11.3
Price to Cash Flow	x	23.1	13.3
TTM P/E ratio	x	33.4	87.3
Price / Book Value ratio	x	1.7	2.4
Market Cap	Rs m	4,862	8,255
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for APOLLO PIPES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY21, from 2.0x during FY20. 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 14.4x during FY21, from 6.9x during FY20. 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 12.7% during FY21, from 10.0% during FY21. 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 17.7% during FY21, from 13.9% during FY20. 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 9.7% during FY21, from 7.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.0	2.0
Debtors’ Days	Days	531	442
Interest coverage	x	6.9	14.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.1	9.7
Return on equity	%	10.0	12.7
Return on capital employed	%	13.9	17.7

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

APOLLO PIPES Share Price Performance

Over the last one year, APOLLO PIPES share price has moved up from Rs 241.8 to Rs 987.3, registering a gain of Rs 745.5 or around 308.3%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of APOLLO PIPES