APOLLO TYRES 2023-24 Annual Report Analysis

Wed, 3 Jul

APOLLO TYRES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

APOLLO TYRES Income Statement Analysis

• Operating income during the year fell 28.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY24 as against 13.7% in FY23.
• Depreciation charges decreased by 35.4% and finance costs decreased by 26.2% YoY, respectively.
• Other income grew by 230.5% YoY.
• Net profit for the year grew by 4.5% YoY.
• Net profit margins during the year grew from 4.5% in FY23 to 6.6% in FY24.

APOLLO TYRES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	245,681	175,393	-28.6%
Other income	Rs m	411	1,358	230.5%
Total Revenues	Rs m	246,092	176,751	-28.2%
Gross profit	Rs m	33,559	30,239	-9.9%
Depreciation	Rs m	14,191	9,165	-35.4%
Interest	Rs m	5,506	4,065	-26.2%
Profit before tax	Rs m	14,272	18,366	28.7%
Tax	Rs m	3,226	6,826	111.6%
Profit after tax	Rs m	11,046	11,540	4.5%
Gross profit margin	%	13.7	17.2
Effective tax rate	%	22.6	37.2
Net profit margin	%	4.5	6.6

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APOLLO TYRES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 50 billion as compared to Rs 80 billion in FY23, thereby witnessing an decrease of -37.4%.
• Long-term debt down at Rs 24 billion as compared to Rs 38 billion during FY23, a fall of 35.4%.
• Current assets fell 36% and stood at Rs 57 billion, while fixed assets fell 22% and stood at Rs 144 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 200 billion as against Rs 273 billion during FY23, thereby witnessing a fall of 27%.

APOLLO TYRES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	128,778	104,394	-18.9
Current Liabilities	Rs m	80,104	50,171	-37.4
Long-term Debt	Rs m	37,898	24,486	-35.4
Total Liabilities	Rs m	272,873	200,439	-26.5
Current assets	Rs m	88,587	56,894	-35.8
Fixed Assets	Rs m	184,286	143,545	-22.1
Total Assets	Rs m	272,873	200,439	-26.5

APOLLO TYRES Cash Flow Statement Analysis

• APOLLO TYRES's cash flow from operating activities (CFO) during FY24 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -17 billion, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -54 million from the Rs -352 million net cash flows seen during FY23.

APOLLO TYRES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	21,344	20,854	-2.3%
Cash Flow from Investing Activities	Rs m	-4,761	-4,347	-
Cash Flow from Financing Activities	Rs m	-16,918	-16,561	-
Net Cash Flow	Rs m	-352	-54	-

Current Valuations for APOLLO TYRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.2, an improvement from the EPS of Rs 17.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 535.6, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	386.8	276.2
TTM Earnings per share	Rs	17.4	18.2
Diluted earnings per share	Rs	17.4	18.2
Price to Cash Flow	x	8.0	13.5
TTM P/E ratio	x	19.4	19.8
Price / Book Value ratio	x	1.3	2.7
Market Cap	Rs m	161,998	278,666
Dividends per share (Unadj.)	Rs	4.5	6.0

Ratio Analysis for APOLLO TYRES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.1x during FY23. 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 5.5x during FY24, from 3.6x during FY23. 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 11.1% during FY24, from 8.6% during FY24. 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 17.4% during FY24, from 11.9% during FY23. 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 7.8% during FY24, from 6.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	37	39
Interest coverage	x	3.6	5.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.1	7.8
Return on equity	%	8.6	11.1
Return on capital employed	%	11.9	17.4

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

APOLLO TYRES Share Price Performance

Over the last one year, APOLLO TYRES share price has moved up from Rs 397.1 to Rs 535.6, registering a gain of Rs 138.5 or around 34.9%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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