APOLLO TRICOAT TUBES 2020-21 Annual Report Analysis

Wed, 31 Mar

APOLLO TRICOAT TUBES 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 TRICOAT TUBES Income Statement Analysis

• Operating income during the year rose 122.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.1% in FY21 as against 11.2% in FY20.
• Depreciation charges increased by 63.2% and finance costs increased by 61.4% YoY, respectively.
• Other income grew by 57.5% YoY.
• Net profit for the year grew by 148.5% YoY.
• Net profit margins during the year grew from 6.4% in FY20 to 7.1% in FY21.

APOLLO TRICOAT TUBES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,633	14,728	122.1%
Other income	Rs m	11	18	57.5%
Total Revenues	Rs m	6,644	14,746	121.9%
Gross profit	Rs m	742	1,637	120.5%
Depreciation	Rs m	101	165	63.2%
Interest	Rs m	60	97	61.4%
Profit before tax	Rs m	592	1,393	135.1%
Tax	Rs m	170	342	101.7%
Profit after tax	Rs m	423	1,050	148.5%
Gross profit margin	%	11.2	11.1
Effective tax rate	%	28.7	24.6
Net profit margin	%	6.4	7.1

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APOLLO TRICOAT TUBES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 981 million as compared to Rs 1 billion in FY20, thereby witnessing an decrease of -30.2%.
• Long-term debt down at Rs 490 million as compared to Rs 982 million during FY20, a fall of 50.1%.
• Current assets fell 11% and stood at Rs 1 billion, while fixed assets rose 12% and stood at Rs 4 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 5%.

APOLLO TRICOAT TUBES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,995	3,043	52.5
Current Liabilities	Rs m	1,406	981	-30.2
Long-term Debt	Rs m	982	490	-50.1
Total Liabilities	Rs m	4,632	4,851	4.7
Current assets	Rs m	1,473	1,309	-11.1
Fixed Assets	Rs m	3,159	3,542	12.1
Total Assets	Rs m	4,632	4,851	4.7

APOLLO TRICOAT TUBES Cash Flow Statement Analysis

• APOLLO TRICOAT TUBES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 81.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -497 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -601 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 50 million from the Rs 47 million net cash flows seen during FY20.

APOLLO TRICOAT TUBES 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	632	1,148	81.6%
Cash Flow from Investing Activities	Rs m	-1,341	-497	-
Cash Flow from Financing Activities	Rs m	756	-601	-
Net Cash Flow	Rs m	47	50	6.8%

Current Valuations for APOLLO TRICOAT TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.5, an improvement from the EPS of Rs 13.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,200.0, stands at 69.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 24.0 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	218.2	484.5
TTM Earnings per share	Rs	13.9	34.5
Diluted earnings per share	Rs	7.0	17.3
Price to Cash Flow	x	31.6	18.2
TTM P/E ratio	x	39.2	69.5
Price / Book Value ratio	x	5.1	7.3
Market Cap	Rs m	10,176	22,139
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for APOLLO TRICOAT TUBES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.0x 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 15.4x during FY21, from 10.9x 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 34.5% during FY21, from 21.2% 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 42.2% during FY21, from 21.9% 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 23.6% during FY21, from 10.4% 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	1.0	1.3
Debtors’ Days	Days	209	29
Interest coverage	x	10.9	15.4
Debt to equity ratio	x	0.5	0.2
Return on assets	%	10.4	23.6
Return on equity	%	21.2	34.5
Return on capital employed	%	21.9	42.2

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

APOLLO TRICOAT TUBES Share Price Performance

Over the last one year, APOLLO TRICOAT TUBES share price has moved up from Rs 272.3 to Rs 1,200.0, registering a gain of Rs 927.7 or around 340.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of APOLLO TRICOAT TUBES