APOLLO PIPES 2021-22 Annual Report Analysis

Fri, 9 Sep

APOLLO PIPES 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.

APOLLO PIPES Income Statement Analysis

• Operating income during the year rose 51.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY22 as against 14.4% in FY21.
• Depreciation charges increased by 45.8% and finance costs decreased by 3.6% YoY, respectively.
• Other income declined by 54.9% YoY.
• Net profit for the year grew by 11.9% YoY.
• Net profit margins during the year declined from 8.6% in FY21 to 6.3% in FY22.

APOLLO PIPES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,181	7,841	51.3%
Other income	Rs m	84	38	-54.9%
Total Revenues	Rs m	5,265	7,879	49.6%
Gross profit	Rs m	744	935	25.6%
Depreciation	Rs m	176	257	45.8%
Interest	Rs m	45	44	-3.6%
Profit before tax	Rs m	607	672	10.8%
Tax	Rs m	162	174	7.6%
Profit after tax	Rs m	445	498	11.9%
Gross profit margin	%	14.4	11.9
Effective tax rate	%	26.7	25.9
Net profit margin	%	8.6	6.3

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

APOLLO PIPES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 3.9%.
• Long-term debt down at Rs 92 million as compared to Rs 182 million during FY21, a fall of 49.6%.
• Current assets rose 12% and stood at Rs 3 billion, while fixed assets rose 7% 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 10%.

APOLLO PIPES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,511	4,035	14.9
Current Liabilities	Rs m	1,338	1,390	3.9
Long-term Debt	Rs m	182	92	-49.6
Total Liabilities	Rs m	5,072	5,565	9.7
Current assets	Rs m	2,661	2,976	11.9
Fixed Assets	Rs m	2,411	2,589	7.4
Total Assets	Rs m	5,072	5,565	9.7

APOLLO PIPES Cash Flow Statement Analysis

• APOLLO PIPES's cash flow from operating activities (CFO) during FY22 stood at Rs 363 million, an improvement of 74.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -367 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -300 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -304 million from the Rs -557 million net cash flows seen during FY21.

APOLLO PIPES 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	209	363	74.2%
Cash Flow from Investing Activities	Rs m	-556	-367	-
Cash Flow from Financing Activities	Rs m	-210	-300	-
Net Cash Flow	Rs m	-557	-304	-

Current Valuations for APOLLO PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an decline from the EPS of Rs 33.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 530.4, stands at 41.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 63.4 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	395.2	199.4
TTM Earnings per share	Rs	33.9	12.7
Diluted earnings per share	Rs	11.3	12.7
Price to Cash Flow	x	62.5	63.4
TTM P/E ratio	x	87.3	41.9
Price / Book Value ratio	x	2.4	11.9
Market Cap	Rs m	8,255	47,823
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for APOLLO PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 2.0x 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 16.3x during FY22, from 14.4x 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 declined and down at 12.3% during FY22, from 12.7% 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 declined and down at 17.3% during FY22, from 17.7% 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 9.7% during FY22, from 9.7% 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	2.0	2.1
Debtors’ Days	Days	442	328
Interest coverage	x	14.4	16.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.7	9.7
Return on equity	%	12.7	12.3
Return on capital employed	%	17.7	17.3

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 down from Rs 1,606.5 to Rs 530.4, registering a loss of Rs 1,076.2 or around 67.0%.

Overall, the S&P BSE SENSEX is up 2.7% 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