APCOTEX INDUSTRIES 2023-24 Annual Report Analysis

Mon, 8 Jul

APCOTEX INDUSTRIES 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.

APCOTEX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY24 as against 14.7% in FY23.
• Depreciation charges increased by 107.0% and finance costs increased by 208.7% YoY, respectively.
• Other income grew by 5.9% YoY.
• Net profit for the year declined by 50.1% YoY.
• Net profit margins during the year declined from 10.0% in FY23 to 4.8% in FY24.

APCOTEX INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,799	11,246	4.1%
Other income	Rs m	73	77	5.9%
Total Revenues	Rs m	10,872	11,323	4.1%
Gross profit	Rs m	1,585	1,139	-28.1%
Depreciation	Rs m	152	315	107.0%
Interest	Rs m	51	156	208.7%
Profit before tax	Rs m	1,455	745	-48.8%
Tax	Rs m	376	206	-45.1%
Profit after tax	Rs m	1,079	539	-50.1%
Gross profit margin	%	14.7	10.1
Effective tax rate	%	25.8	27.7
Net profit margin	%	10.0	4.8

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APCOTEX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 51.3%.
• Long-term debt down at Rs 936 million as compared to Rs 1 billion during FY23, a fall of 25.0%.
• Current assets rose 32% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 15%.

APCOTEX INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,760	5,217	9.6
Current Liabilities	Rs m	1,800	2,722	51.3
Long-term Debt	Rs m	1,248	936	-25.0
Total Liabilities	Rs m	8,034	9,221	14.8
Current assets	Rs m	3,225	4,263	32.2
Fixed Assets	Rs m	4,809	4,958	3.1
Total Assets	Rs m	8,034	9,221	14.8

APCOTEX INDUSTRIES Cash Flow Statement Analysis

• APCOTEX INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 402 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -196 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -130 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 76 million from the Rs 128 million net cash flows seen during FY23.

APCOTEX INDUSTRIES 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	1,214	402	-66.9%
Cash Flow from Investing Activities	Rs m	-1,793	-196	-
Cash Flow from Financing Activities	Rs m	708	-130	-
Net Cash Flow	Rs m	128	76	-40.7%

Current Valuations for APCOTEX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an decline from the EPS of Rs 20.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 440.0, stands at 42.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 30.0 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	208.3	216.9
TTM Earnings per share	Rs	20.8	10.4
Diluted earnings per share	Rs	20.8	10.4
Price to Cash Flow	x	20.5	30.0
TTM P/E ratio	x	23.4	42.3
Price / Book Value ratio	x	5.6	4.9
Market Cap	Rs m	26,814	25,641
Dividends per share (Unadj.)	Rs	5.5	5.5

Ratio Analysis for APCOTEX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.8x 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 deteriorated and stood at 5.8x during FY24, from 29.8x 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 declined and down at 10.3% during FY24, from 22.7% 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 declined and down at 14.6% during FY24, from 25.1% 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 declined and down at 7.5% during FY24, from 14.1% 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	1.8	1.6
Debtors’ Days	Days	463	659
Interest coverage	x	29.8	5.8
Debt to equity ratio	x	0.3	0.2
Return on assets	%	14.1	7.5
Return on equity	%	22.7	10.3
Return on capital employed	%	25.1	14.6

To see how APCOTEX INDUSTRIES has performed over the last 5 years, please visit here.

APCOTEX INDUSTRIES Share Price Performance

Over the last one year, APCOTEX INDUSTRIES share price has moved down from Rs 540.2 to Rs 440.0, registering a loss of Rs 100.3 or around 18.6%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for APCOTEX INDUSTRIES and quarterly results for APCOTEX INDUSTRIES)