APOLLO PIPES 2022-23 Annual Report Analysis

Mon, 25 Sep

APOLLO PIPES 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 PIPES Income Statement Analysis

• Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY23 as against 11.9% in FY22.
• Depreciation charges increased by 10.5% and finance costs increased by 115.3% YoY, respectively.
• Other income declined by 48.3% YoY.
• Net profit for the year declined by 51.9% YoY.
• Net profit margins during the year declined from 6.3% in FY22 to 2.6% in FY23.

APOLLO PIPES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,841	9,145	16.6%
Other income	Rs m	38	20	-48.3%
Total Revenues	Rs m	7,879	9,165	16.3%
Gross profit	Rs m	935	686	-26.6%
Depreciation	Rs m	257	284	10.5%
Interest	Rs m	44	94	115.3%
Profit before tax	Rs m	672	327	-51.3%
Tax	Rs m	174	88	-49.4%
Profit after tax	Rs m	498	239	-51.9%
Gross profit margin	%	11.9	7.5
Effective tax rate	%	26.0	27.0
Net profit margin	%	6.3	2.6

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APOLLO PIPES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 49.0%.
• Current assets rose 14% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 3 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 21%.

APOLLO PIPES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,035	4,553	12.8
Current Liabilities	Rs m	1,390	2,072	49.0
Long-term Debt	Rs m	92	0	-100.0
Total Liabilities	Rs m	5,565	6,708	20.5
Current assets	Rs m	2,976	3,391	13.9
Fixed Assets	Rs m	2,589	3,317	28.1
Total Assets	Rs m	5,565	6,708	20.5

APOLLO PIPES Cash Flow Statement Analysis

• APOLLO PIPES's cash flow from operating activities (CFO) during FY23 stood at Rs 687 million, an improvement of 89.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -680 million, an improvement of 84.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -78 million, an improvement of 74% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -70 million from the Rs -304 million net cash flows seen during FY22.

APOLLO PIPES 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	363	687	89.2%
Cash Flow from Investing Activities	Rs m	-368	-680	-
Cash Flow from Financing Activities	Rs m	-300	-78	-
Net Cash Flow	Rs m	-304	-70	-

Current Valuations for APOLLO PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an decline from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 680.3, stands at 92.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 38.8 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	199.4	232.5
TTM Earnings per share	Rs	12.7	6.1
Diluted earnings per share	Rs	12.7	6.1
Price to Cash Flow	x	25.3	38.8
TTM P/E ratio	x	38.3	92.2
Price / Book Value ratio	x	11.9	4.5
Market Cap	Rs m	47,823	20,268
Dividends per share (Unadj.)	Rs	1.0	0.6

Ratio Analysis for APOLLO PIPES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.1x 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 4.5x during FY23, from 16.3x 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 5.3% during FY23, from 12.3% 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 9.3% during FY23, from 17.3% 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 5.0% during FY23, from 9.7% 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	2.1	1.6
Debtors’ Days	Days	328	262
Interest coverage	x	16.3	4.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	5.0
Return on equity	%	12.3	5.3
Return on capital employed	%	17.3	9.3

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 up from Rs 524.8 to Rs 680.3, registering a gain of Rs 155.6 or around 29.6%.

Overall, the S&P BSE SENSEX is up 11.1% over the year.

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